Attorney Dragana Djordjevic » "Ministry of Finance"

Deadlines for settlement of monetary obligations in commercial transactions

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According to the provisions of the Law on deadlines for settling monetary obligations in commercial transactions (“Official Gazette of the RS”, no. 119/2012, 68/2015, 113/2017, 91/2019, 44/2021, 44/2021 – other Law, 130/ 2021, 129/2021 – other laws and 138/2022) are governed by:

  1. deadlines for settling monetary obligations in commercial transactions between the public sector and business entities, between business entities, that is, between public sector entities, and to prevent non-payment of monetary obligations within the deadline and
  2. recording electronic invoices and other requests for payment in electronic form in the central register of invoices issued by creditors in commercial transactions between the public sector and business entities, i.e. between public sector entities, in which the public sector entities are debtors, based on the data obtained from the system of electronic invoices.

In the Central Register of Invoices established and managed by the Ministry of Finance – Treasury Department, only electronic invoices issued by creditors in commercial transactions between the public sector and business entities, i.e. between public sector entities, in which the public sector entities are debtors, are recorded, upon establishment technical and technological conditions, and mandatory from May 1, 2022, based on data obtained from the electronic invoice system. Continue reading Deadlines for settlement of monetary obligations in commercial transactions →

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

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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.

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Fair value of real estates declared in business books as property tax base for micro legal entities

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According to the provisions of Article 7, paragraph 1. of the Law on Property Taxes, the basis of property tax for the immovable property of a taxpayer who keeps business books and whose value is reported in the business books according to the fair value method following international accounting standards (IAS), i.e. international financial reporting standards (IFRS) and adopted accounting policies is the fair value stated on the last day of the taxpayer’s business year in the current year.

According to the opinion of the Ministry of Finance, no. 011-00-00698/2021-04 from July 1, 2021. for the fair value of the real estate shown in the taxpayer’s business books on the last day of the taxpayer’s business year in the year preceding the year for which the property tax is determined and paid to form the basis of the property tax, all prescribed conditions must be met:

  • that the specific obligee has the status of an obligee who keeps business books under the Law
  • that the taxpayer reports the value of the real estate in the business books using the fair value method under international accounting standards (IAS), i.e. international financial reporting standards (IFRS) and adopted accounting policies, as well as
  • that the value of the real estate in the business books of the taxpayer was stated following IAS, i.e. IFRS and adopted accounting policies on the last day of the business year of the taxpayer in the current year (i.e. the year preceding the year for which the tax liability is determined.

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