Tax aspects of continuing the activity of an entrepreneur in the form of a business company

The institution of continuation of activities of entrepreneurs in the form of a company is governed by the provisions of Article 92 of the Law on Business Companies (“Official Gazette of the RS”, no. 36/2011, 99/2011, 83/2014 – other law, 5/2015, 44 /2018, 95/2018, 91/2019 and 109/2021 – from now on Law on Business Companies).

According to Article 92 of the Law on Business Companies, an entrepreneur can decide to continue performing activities in the form of a business company, whereby the provisions of the Law on Business Companies on establishing a given form of the company shall be applied accordingly. Based on the decision on the continuation of activities in the form of a business company, the entrepreneur is simultaneously deleted from the register of business entities, and the registration of the establishment of a business company is carried out, which takes over all the rights and obligations of the entrepreneur arising from business up to the time of the establishment of that business company.

After the loss of the status of an entrepreneur following the provisions of Article 92 of the Law on Business Companies, that natural person remains responsible with all of his assets for all obligations incurred in connection with the performance of activities until the moment the entrepreneur is deleted from the register.

Continue reading Tax aspects of continuing the activity of an entrepreneur in the form of a business company

Specifics of branch operations in Serbia

A foreign company branch office is a separate organizational unit of a company in the territory of the Republic of Serbia through which the company performs activity in accordance with the law.

A foreign legal entity may permanently perform activities on the territory of the Republic of Serbia through a branch established and registered following the regulations of the Republic of Serbia. The following rules regulate the registration and operation of a component of a foreign legal entity:

  1. Companies Act
  2. The Law on the Registration Procedure in the Business Registers Agency
  3. Foreign Trade Act
  4. Law on Foreign Currency Transaction
  5. Law on Payment Operations
  6. Law on Accounting
  7. other bylaws adopted based on the said laws.

Continue reading Specifics of branch operations in Serbia

Tax aspect of liquidation of companies

Tax aspect of liquidation of companies have their own specific characteristics in relation to the general corporate tax regime.

The most common tax questions which arise regarding the tax aspect of liquidation of companies are:

  • assessment of tax on corporate profit of companies in liquidation and
  • tax treatment of payments of the liquidation surplus.

Assessment of tax on profit of companies in liquidation

Generally according to the provisions of Article 34 of the Corporate Profit Tax Law, taxpayer’s profit in the process of liquidation shall be taxed in accordance with that law. Continue reading Tax aspect of liquidation of companies