On 30 July 2020 the Serbian Government, in accordance with recommendations from the Serbian Ministry of Finance, issued a new set of measures to fight Covid-19 effects on economy. Total value of measures is around EUR 5.8 billion and it is equal to 12.5% of Serbian GDP. The measures will be available to companies that have not laid off more than 10% of their employees during the period from 15 March 2020 till the end of three-month period from the last payment prescribed by the new set of measures.
The new set of measures can be sorted into the following groups:
Cash/Salary Subsidy
- Cash subsidy to employees of self-employed entities, micro, small and medium companies in the private sector that have the right to subsidies under previous set of measures – payment of 60% of the amount that was paid to the taxpayer in July 2020. The payments will be automatically performed in August and September 2020.
- Cash subsidy to employees of large companies in the private sector whose employment is at a standstill that did not lose the right to subsidies under previous set of measures – under the condition that the SL form is submitted by 15 August 2020:
- In August and September 2020 for the month June and July 2020 for employees for which the decision on termination of employment covers at least 15 days during June 2020, that is during July 2020 – payment of the 50% of the minimum salary in March 2020.
- Cash subsidy for other entities
- This group represents entities that are not included in the previous two groups and entities that are registered or became VAT payer during the period from 15 March 2020 till 20 July 2020 – under the condition that they submit the PPP-PD form for August 2020 (and state as the day of payment 5 January 2021 under position 1.4) by 15 September 2020.
- Entrepreneurs, irrespective of tax treatment of their earnings, that have no employees or chose not to be self-employed – the cash subsidy is paid automatically.
- Cash subsidies will be paid in September 2020 in the amount of 120% of the minimum salary in March 2020.
Recipients of cash subsidies can use the given funds by 31 October 2020, after which the assigned bank accounts will be closed.
Tax Measures
- Deferral of payment of salary tax and social contributions for one tax period (August 2020) with delayed payment of liability – this tax measure will be available for self-employed entities, micro, small and medium companies in the private sector.
- For taxpayers that fall within the group of other entities – payment of salary tax and social contributions that are due in September 2020, payment is postponed till 5 January 2021.
- The new set of measures does not prescribe deferral of advance payments for corporate income tax.
Moratorium for banks and providers of financial leasing
National Bank of Serbia (NBS) has issued a decision aimed at mitigating the effects of a COVID-19 pandemic for banks and providers of financial leasing
- Banks have to offer borrowers/lessees (individuals, farmers, entrepreneurs and legal entities) a postponement on obligations repayment (moratorium) by Friday, 31 July 2020 latest.
- The offer of the moratorium refers only to the obligations that were approved to the debtor before 28 July 2020, and which are due in the period from 1 August to 30 September 2020, as well as to obligations which were due in July but were not paid.
- In accordance with the issued decision banks are obligated to deliver new payment plan to debtors, suspend payments on standing orders, adjust internal acts, report to NBS on a monthly basis and cover all of the expenses related to implementation of the moratorium.