On 10 April 2020, the Government of the Republic of Serbia adopted Decree on Fiscal Benefits and Direct Grants to Private Sector Companies („Decree“) that entered into force the same day. The Decree foresees numerous benefits for private sector companies comprising direct grants along with deferred payment deadlines of certain public revenues. If they meet the requirements laid down in the Decree, all business entities in the private sector can be beneficiaries of aid by filing a tax return.
Although the Decree has comprehensively clarified all aspects of the use of State aid, several questions have arisen in practice due to its implementation. One of these questions concerns the ability of business entities to use the benefits prescribed by Decree if the made a payment of wages and salaries to employees for March by 10 April, when the Decree entered into force.
It is still possible to apply for fiscal benefits and direct grants if the tax report PPP-PD application submits today
The unofficial standpoint of the Ministry of Finance (“Ministry“) is that a taxpayer who has made a payment of wages and salaries to employees for March 2020 on 10 April 2020, may apply for fiscal benefits and direct grants for a 3 months period, despite they have already calculated and paid off their obligations for March. The Ministry was aware that the taxpayers that made the payment on 10 April, could not be aware of the new measures introduced by the Government and were not able to file the PPP-PD tax return in accordance with the requirements of the Decree so that they can be beneficiaries of aid.
These taxpayers are enabled to apply for fiscal and direct benefits by submitting a PPP-PD tax return up to April 30, 2020, for salaries and wages of the month of April 2020, to use benefits for three months.
If taxpayers submit a PPP-PD tax return following the most recent Ministry instructions, they will be entitled to direct benefits regarding the number of employees for which they submitted the PPP-PD tax return for March, April, and May 2020. On the other hand, deferred payment deadlines for taxes and contributions of citizens on salaries and wages will be obtained for April, May, and June 2020.
