Publisher: Bojović Drašković Popović & Partners

Serbia: EUR 5.1 billion to mitigate the effects of COVID-19 pandemic

Serbia: EUR 5.1 billion to mitigate the effects of COVID-19 pandemic

The Ministry of Finance and the Serbian Chamber of Commerce have presented a package of economic measures to mitigate the effects of the COVID-19 pandemic on the economy, worth 5.1 billion euros. 

The Ministry of Finance has announced that the measures for the implementation of this package will be adopted within the next 10 days.

 The program encompasses the following measures:

 1.     Tax policy measures:

  • Postponement of payment of payroll taxes and contributions of the private sector, during the state of emergency, with the late repayment of liabilities incurred in installments beginning at the earliest 2021
  • Delaying the payment of income tax advance payments in the second quarter
  • Exemption of donors from the obligation to pay VAT

2.     Direct assistance to the private sector:

  • Direct assistance to flat-rate entrepreneurs who pay real income tax, to micro, small and medium-sized companies in the private sector - payment of minimum wage assistance (3 minimum wages during the state of emergency)
  • Direct assistance to large companies in the private sector - payment of 50% of the net minimum wage (during the state of emergency) for employees who have been terminated by a decision (Articles 116 and 117 of the Labor Law)

3.     Liquidity measures:

  • Program of financial support to the economy during the COVID-19 crisis of the Development Fund of the Republic of Serbia
  • Guarantee scheme for supporting the economy during the COVID-19 crisis

4.     Other measures:

  • Moratorium on dividend payments by the end of the year, except for PE
  • Direct help to all adult citizens