Republic of Serbia: Amendments to the Law on Property Taxes

At the session held on November 26, 2020, the National Assembly of the Republic of Serbia passed the Law on Amendments to the Law on Property Tax. Below you may find some of the most important changes.

Transfer of competencies

The competence of the Tax Administration for determining, collecting and controlling inheritance and gift taxes and taxes on the transfer of absolute rights is transferred to local self-government units, and will be applied from January 1, 2022.

Local self-governments are considered a tax authority in terms of the provisions of this law.

Local self-government units will take over from the Tax Administration employees who perform tasks of determining, collecting and controlling inheritance and gift taxes and taxes on the transfer of absolute rights, objects, information system and archives, as well as equipment and means for performing competencies in those areas, from November 1 to December 31, 2021. Procedures initiated by the Tax Administration in the exercise of competencies, which are not completed by the day of taking over the case in accordance with the previous deadline, will be completed by local self-government units.

Calculation and regulation of the tax on transfer of absolute rights

Inheritance and gift tax, i.e. tax on transfer of absolute rights, for the determination of which the procedure was initiated according to the regulations that were valid until the beginning of the application of this law, shall be determined by the application of the law in force on the day of tax liability. Inheritance and gift tax, i.e. tax on transfer of absolute rights, based on inheritance, gift or transfer of absolute rights, for the determination of which the taxpayer was obliged to file a tax return and for which the tax liability arose on the day of knowledge of the competent tax authority after entry into force of this law, shall be determined and paid by the application of the law governing property taxes which was in force on the day on which the tax liability would arise in accordance with Article 17 para. 1. to 4, i.e. Article 29 para. 1 to 8 of the Law on Property Taxes (“Official Gazette of RS”, No. 26/01, 45/02-SUS, 80/02, 80/02-other law, 135/04, 61/07, 5 / 09, 101/10, 24/11, 78/11, 57/12-US, 47/13, 68/14-other law, 95/18, 99/18-US and 86/19) that it was reported in prescribed period.

Application

Property tax will be determined and paid in accordance with this law starting in 2021.

When determining the property tax for 2021, the following will be applied:

1) Average prices per square meter of appropriate real estate in zones determined on the basis of prices in traffic in zones or border zones in accordance with Article 6, para. 5 to 7 of the Law on Property Taxes (“Official Gazette of RS”, No. 26/01, 45/02-SUS, 80/02, 80/02-other law, 135/04, 61/07, 5 / 09, 101/10, 24/11, 78/11, 57/12-US, 47/13, 68/14-other law, 95/18, 99/18-US and 86/19), i.e. average prices from real estate in the best equipped zone in accordance with Article 7a paragraph 2 of that law, if they were published by November 30, 2020;

2) Acts regulating the depreciation rate, zone and property tax rate, which were published by November 30, 2020 or before 2020, if their application is not limited until 2020. When determining the property tax for 2021 for ancillary facilities, the average prices per square meter of garages and garage spaces in zones determined on the basis of prices in traffic of these real estates in zones or border zones, in accordance with Article 6, paragraph 5, shall apply to 7. Law on Property Taxes

Entry into force

This law enters into force on January 1, 2021.

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