Amendments to the Law on Tax Procedure and Tax Administration

Amendments to the Law on Tax Procedure and Tax Administration are published in the Official Gazette of the Republic of Serbia No. 108/2016 dated 29 December 2016. The most notable changes that will come into force on 1 January 2017 are presented below.

• According to the amendments to the Law, the second-instance tax procedure is shifted to the competence of the Ministry of Finance. Consequently, from now on the Ministry of Finance will decide on appeals against first-instance judgements made by the Tax Authority. Namely, the previous legal regime envisaged that the Tax Authority was competent to decide on these appeals;
• Tax payer – legal entity which provides goods and/or services in Serbia in accordance with tax laws which (i) does not have head office or permanent establishment in Serbia, or (ii) does have head office or permanent establishment in Serbia, but provides goods and/or services outside of its permanent establishment, will be fined with a penalty in the amount of 100,000 to 2,000,000 Serbian dinars – if in accordance with tax law has not appointed a tax proxy and is not registered for the obligation to pay taxes in Serbia.