Serbia: Tax implications of IFRS 9, deductibility of receivables
Guidance issued by the Ministry of Finance concerns corporate income tax implications of IFRS 9
Guidance concerning corporate income tax implications of IFRS 9
Guidance issued by the Ministry of Finance—Opinions no. 011-00-200/2021-04 and 011-00-62/2022-04—concerns the corporate income tax implications of IFRS 9.
- With these opinions, the position of the Ministry of Finance is that a restatement of the opening balance of retained earnings / accumulated losses is considered to be a deductible expense for corporate income tax purposes over a five-year period, regardless whether the requirements for deductibility of the allowance for receivables are met (an expensed allowance for receivables generally is deductible for tax purposes if the receivables are past-due by at least 60 days).
- Expensed impairment of an individual receivable posted after the first application of IFRS 9 is deductible only if the requirements for deductibility of an expensed allowance for receivables are met (expensed allowance for receivables generally is deductible for tax purposes if the receivables are past-due by at least 60 days).
These rules apply also in the case of a simplified approach, using a provision matrix for the impairment of trade receivables.
Expensed impairment of a receivable partially impaired during first application of IFRS 9 is deductible according to rules for deductibility of an expensed allowance for impairment of receivables.
Read a March 2022 report prepared by the KPMG member firm in Serbia
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