Date: 23/03/2020

Reduction of the default interest rate and taxpayer-specific relief

In the evening edition of the Official Gazette of the Republic of Serbia No. 38/2020 dated March 20, 2020, the Government of Serbia issued a Decree on Tax Measures to Mitigate the Economic Consequences of COVID-19 Disease Caused by the SARS-CoV-2 Virus during the State of Emergency

The Decree enters into force immediately, i.e. on 20 March 2020.

The Decree provides for a 10 percentage points reduction in the default interest rate for underpaid or overpaid tax, so that it now becomes equal to the National Bank of Serbia (NBS) annual reference rate.

Given the current annual reference rate of the NBS, the default interest rate has been reduced from 11.75% to 1.75% per annum since 20 March 2020.

For taxpayers who have been granted a deferred payment of the tax debt within the meaning of Articles 73-74b of the Law on Tax Procedure and Tax Administration, during the state of emergency, starting from the installment due in March 2020, the Tax Authorities will not annul the agreement with the Tax Authorities, i.e. cancel the decision on the delay of payment of the tax debt, or initiate the forced collection procedure. During this period, no default interest will be charged on the tax debt.