What Novelties are Introduced by the Law on Amendments to the Law on Tax Procedure and Tax Administration?

What Novelties are Introduced by the Law on Amendments to the Law on Tax Procedure and Tax Administration?

November 23, 2021

The Law on Amendments to the Law on Tax Procedure and Tax Administration (Official Gazette of RS, no. 96/2021) (the “Law”) was adopted on October 16, 2021. The novelties introduced by this piece of regulation particularly include those referring to the filing of tax application for calculated mandatory social insurance contributions for company founders and/or shareholders, deferral of interest payment for settled obligations, replacement of insurance instruments for collection of due taxes, and issuance of additional record.

Tax Application for Calculated Mandatory Social Insurance Contributions for Company Founders and/or Shareholders

The Law stipulates that, if a taxpayer fails to submit tax application for calculated mandatory social insurance contributions for company founders, i.e. shareholders in the prescribed period, instead of the taxpayer, the respective application shall be filed ex officio by the Tax Administration.

Deferred Interest Payment

The Law further sets out that, if a taxpayer settles its principal tax liability that was subject to deferral, it may, within five days upon the payment, file a request for deferred payment of the remaining interest that relates to the settled obligations.

The above said shall also apply to a due tax that was subject to the procedure of deferring the payment of due tax where the agreement was cancelled, or decision was revoked before entry into force of this regulation.

Replacement of Collection Insurance Instruments

The Law also prescribes that, upon request of taxpayer who was approved the deferral of due tax, the Tax Administration may replace the collection insurance instruments in the subject procedure. Naturally, the new insurance instrument shall be of the same type, but also of higher value than the current one.

This shall also apply to insurance instruments used in procedure of deferring the payment of due tax that was approved prior to entry into force of this Law.

Issuance of Additional Record

Finally, as it was prescribed before the adoption and entry into force of this Law, a taxpayer is entitled to submit objections to the record on undertaken tax control, within eight days upon receipt of the record (with certain prescribed exceptions). Provided that new evidence and facts have been stated in the objection, requiring the adjustments of the factual situation established in the record, or changes to the previous legal assessment, tax inspector shall include such evidence, facts or new legal assessments in the additional record, whereas it needs to be done within 30 days (instead of previously prescribed five days) from the day of receipt of objections. 

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