The Government of Serbia has issued amended Decree on the criteria for determining activities that affect the environment and the amounts of fees “Official Gazette of Serbia” No. 30/2024.
The Decree is effective as of 6 April 2024.
An overview of significant changes is provided below.
Criteria for determining activities that affect the environment
According to the amended Decree, the branch of
a foreign legal entity is required to pay the fee for the protection and improvement of the environment.
It has been specified that the activities of legal entities, entrepreneurs and branches of foreign legal entities are performed in the headquarters and separate business units.
The amended Decree provides a broader definition of predominant activity that includes activity that is registered in the appropriate register in accordance with the law, i.e. the activity from which the taxpayer generated the most income in the year preceding the year for which the fee for the protection and improvement of the environment is determined.
The amount and the method of determining the fee for the protection and improvement of the environment
The amount of the fee, which was determined according to the degree of negative impact of the activity performed by the taxpayer and the classification, remains unchanged.
Activities classified according to the degree of negative impact on the environment are listed in the Annex to the Decree.
It has been specified that the fee is determined for the calendar year and proportionally to the period of performance of the activity.
The new provision of the Decree stipulates that an entrepreneur who pays income tax from self-employment on a lump-sum determined income, pays the amount of the fee for the protection and improvement of the environment in the amount prescribed for micro legal entities and entrepreneurs.
The new provision of the Decree prescribes the method of determining the fee for the protection and improvement of the environment in cases when the taxpayer performs an activity on the territory of several local self-government units, i.e. city municipalities in the city whose special acts regulate that the city municipality determines fee.
In addition, in the same edition of the Official Gazette of the Republic of Serbia and with the same date of entry into force (6 April 2024), a new Rulebook on the appearance, content and method of submitting returns for environmental protection and improvement, has been adopted prescribing new tax forms:
- Form 1 Eco Tax Return
- Form 2 Eco Tax Return for transport of goods.
Please note that the deadline for submission of above returns for 2024 is 30 April 2024.
If you have any questions or you need assistance of our professionals, please contact us at tax@kpmg.rs
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KPMG Tax & Legal Department
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Milutina Milankovića 1J
11 070 Belgrade, Serbia
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tax@kpmg.rs
