Executing reporting obligation to NBS in respect of foreign operations

Reporting obligation to NBS in respecct of foreign operations

Reporting obligation to NBS (National Bank of Serbia) in respect of foreign operations governing the following two regulations:

  • Decision on Reporting Requirements in Respect of Foreign Operations (RS Official Gazette, Nos 87/2009 and 40/2015) and
  • Guidelines for Implementing the Decision on Reporting Requirements in Respect of Foreign Operations (RS Official Gazette, No 87/2009 and 40/2015).

Reporting entities and reporting titles to NBS in respect of foreign operations

Decision on Reporting Requirements in Respect of Foreign Operations (RS Official Gazette, Nos 87/2009 and 40/2015) by its provisions regulate the reporting entities and the titles of reporting to NBS in respect of foreign operations.

Residents as defined by the Law on Foreign Exchange Operations are the reporting entities to NBS in respect of foreign operations.

According to provisions of Article 2 paragraph 1 item 1 of Law on Foreign Exchange Operations (RS Official Gazette, Nos 62/2006, 31/2011, 119/2012 i 139/2014) residents are:

  • a legal entity registered and headquartered in the Republic
  • an entrepreneur – natural person registered in the Republic and pursuing a legally permitted profit-oriented activity as a profession
  • a branch of a foreign legal entity entered into the register with the competent authority in the Republic
  • a natural person residing in the Republic, except for a natural person holding a temporary residence abroad for over a year
  • a natural person – foreign citizen residing in the Republic based on a residence permit, and/or work visa for over a year, except for diplomatic-consular representatives of foreign countries and members of their families
  • beneficiaries of the budget funds of the Republic of Serbia, beneficiaries of funds of mandatory social insurance organisations, and beneficiaries of funds of local government budgets, as well as other public funds beneficiaries included in the consolidated treasury account system
  • a diplomatic, consular or other representative office abroad financed from the budget of the Republic, domestic citizens employed in those offices, as well as their family members.

Reporting entities are required to submit reports to NBS in respect of foreign operations, and on the basis of:

  • domestic direct investment by non-residents
  • direct investment by residents abroad
  • investment (construction) works performed by non-residents in the country
  • investment (construction) works performed by residents abroad
  • balance and cash flow on accounts of residents abroad
  • balance and cash flow on current accounts used in performing foreign operations
  • other activities needed for the preparation of the balance of payments.

By the Article 2 paragraph 1 item 17 of the Law on Foreign Exchange Operations (RS Official Gazette, Nos 62/2006, 31/2011, 119/2012 i 139/2014) direct investments are defined as resident’s investments into a legal entity abroad and non-resident’s investments into a legal entity in the Republic for the purpose of becoming involved in the management of such legal entity’s activities.

Under the investment in terms of paragraph 1 point 17 is considered: incorporation of a legal entity, branch or representative office, purchase of stake or shares in the capital of a legal entity, recapitalisation of a legal entity, and any other form of investment whereby the investor acquires more than a 10% stake in share capital, and/or more than 10% of voting rights, in a period not longer than one year following the first investment into that legal entity in the event of successive investments (for the purpose of reaching the 10% threshold) and credits and loans with a maturity of five years or longer provided they have the characteristics of subordinated claims (subordinated credits and loans).

The reporting entities are liable for the accuracy of data contained in reports and if requested by NBS, they must prove the accuracy of such data by submitting appropriate bookkeeping and other documentation.

NBS shall use the submitted reports for monitoring the performance of the balance of payments of the Republic of Serbia and the balance of direct investment by residents abroad and by non-residents in Republic of Serbia and data from such reports may be disclosed to the public in aggregated form only.

Executing reporting obligation to NBS in respect of foreign operations

For implementing of the Decision on Reporting Requirements in Respect of Foreign Operations (RS Official Gazette, No 87/2009 and 40/2015) the Governor of the NBS issued the Guidelines for Implementing the Decision on Reporting Requirements in Respect of Foreign Operations (RS Official Gazette, No 87/2009 and 40/2015).

Reporting obligation to NBS in respecct of foreign operations

Reporting entities referred to in the Decision on Reporting Requirements in Respect of Foreign Operations are required to submit reports on foreign operations to NBS using the report forms and within the deadlines specified in Guidelines for implementing the Decision on Reporting Requirements in Respect of Foreign Operations (RS Official Gazette, Nos 87/2009 and 40/2015).

Reporting entities shall submit to NBS the following reports:

  • report on foreign direct investments by non-residents in the country (balance and transactions) – using DI-1 Form, quarterly
  • report on foreign direct investments by residents abroad (balance and transactions) – using DI-2 Form, quarterly
  • report on transactions between residents and non-residents in respect of performance of investment (construction) works – using GRU Form, quarterly
  • report on balance and transactions on resident accounts abroad and current accounts abroad – using RN Form, quarterly.

Amounts in the reports shall be expressed in US dollars, by applying the official middle exchange rate for the US dollar valid on the last day of the reporting period.

Reporting entities shall submit completed forms electronically to the NBS – Economic Analyses and Research Department – Balance of Payments Division – Group for Foreign Exchange Statistics, within ten days after the lapse of the reporting period at the latest, to the following e-mail address: devizna.statistika@nbs.rs.

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