The discussion at the Roundtable centered around a list of specific topics on tax policy and tax law implementation, which were prepared by the AmCham Tax Committee. These included issues stemming from Corporate Income Tax Law (including capitalization of royalty charges, transfer prices, tax amortization), Personal Income Tax Law (including proper application of tax relief stipulated by Double Taxation Treaties, determination of the residency of individuals), Value Added Tax (VAT) Law (including turnover of services abroad and loss of status of VAT taxpayer, registration of non-resident companies that do not have a branch in Serbia for VAT) and Tax Procedure (including the non-binding character of Ministry of Opinions and appeal on to the Tax Administration decisions).
Representatives of Tax Administration agreed that some provisions of these laws were ambiguous, leading to varying interpretations by tax payers and the relevant authorities and creating implementation problems in practice. Issuance of a number of opinions, most of which are not publicly available, was characterized as a negative trend that creates legal uncertainty. Participants agreed that such practices could be ended by amendments to these by-laws and clearer legal provisions which would mitigate the need to issuing opinions in the first place.
Conclusions from the Roundtable, (available here), with joint AmCham Tax Committee and Tax Administration recommendations, will be sent to the Ministry of Finance, the Tax Administration and the Large Tax Payers Unit.