The Government of the Republic of Serbia adopted a program of direct benefits to private legal entities at a session held on February 11th, 2021.
The Program aims at mitigating the economic consequences resulting from the Covid-19 pandemic, ensuring that there is no delay in the payment of taxes and contributions. Grants from the government’s budget may be used exclusively for the payment of employee wages and towards the compensation of employees.
Direct payments to companies will be made in April, May, and June of 2021. The first payment has already been announced for April 8th, 2021 and amounts to 15,450.12 dinars per employee. The amount of direct benefit is determined by the number of employees for which a company submits the Tax return for the accounting period February, March, and April 2021. The tax return for February must be submitted by the end of March, by the end of April (for March salaries) and finally by the end of May (for salaries for April).
The manner of accepting direct payments will be regulated in such a way that legal entities are requested to provide a special statement on the Tax Administration portal when submitting a tax return. Legal entities are therefore required to decide for each of the three possible payments of direct benefits they apply for, through such a statement.
A “special purpose” Covid-19 account will be opened for the payment of direct benefits. A company with numerous current accounts at several banks, as at the time the Program is enforced, is obliged to submit data as to the name of the selected bank to which the COVID account will be opened. This should take place no later than March 25, 2021, via the electronic services of the Tax Administration.
Companies will be able to use the funds obtained via the program for the necessary payments to employees by July 31, 2021 at the latest. Any unused funds, as at July 31st, will be withdrawn from the “special purpose” account. returned to the government eventually closing the specific bank account.
The decree came into force on February 13th, 2021.
In case of acceptance of the above measures, effective February 13th, 2021, a company is prohibited to pay dividends up to the end of 2021 and is also not allowed to reduce its employee numbers by over 10% up to September 30th, 2021. It is therefore advisable that in order to accept the measures a company will need to ensure that the above-mentioned conditions are met.
In case the conditions for loss of the right to use direct benefits are met, any money received from direct payments must be returned with accrued interest no later than five days from the date when the rights were lost.
Eurofast’s team will implement the program in case you declare that you accept the offered measures. For further information plase contract out senior payroll specialist, Ms Aleksandra Delic via email at firstname.lastname@example.org
Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South East Europe & Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & Middle East