EUR 5.1 billion to mitigate the effects of the epidemic on the economy

The set of economic measures includes a total of nine measures, with an estimated effect of RSD 608.3 billion.

The first set of measures

It assumes, for the most part, the postponement of payment of tax liabilities, with subsequent repayment in installments, at the earliest since the beginning of 2021:

The deferral of taxes and contributions on earnings is deferred to ensure liquidity, sustain economic activity and employment. The payment of income tax advance payments in the second quarter is also postponed.

Postponement of payment of taxes and contributions on earnings for the private sector, during a state of emergency, with a subsequent repayment of any liability incurred in installments beginning at the earliest from 2021. This measure is intended to increase the liquidity of all economic entities that pay earnings to employees. Also, this measure relates to deferring the payment of income tax on the self-employed activities of all entrepreneurs. The increase in liquidity is reflected in the deferral of payment of tax expenses and contributions on earnings. All employers who choose to use this measure can apply deferral of tax and contributions costs until the beginning of 2021, and thereafter leave the possibility of deferring these costs for up to 24 months without the obligation to pay interest at the taxpayer's request.

The basic conditions for implementing this measure are identical for all employers, regardless of their economic strength.

Delaying the payment of corporate income tax advances in the second quarter.

The measure aims to increase taxpayers' liquidity by delaying the payment of corporate income tax advance payments for 2020. due in the second quarter of 2020.

The basic conditions for the application of this measure are identical for all taxpayers of profit tax regardless of their economic strength. For the taxpayers to whom the measure applies, the basic conditions for implementation are identical regardless of the economic strength of the particular taxpayer.

Exemption of donors from the obligation to pay VAT.

The main objective of this measure is to exempt donors who donate their products, or products whose turnover they engage in, to institutions directly involved in activities aimed at preventing the spread and treatment of citizens from Covid-19 disease.

The second set of measures

Refers to direct payments to enterprises, payment of minimum earnings support for entrepreneurs, micro, small and medium-sized enterprises, ie subsidies of 50% of the minimum earnings to large enterprises whose employees are sent on forced leave due to reduced business volume or complete suspension of work.

Direct help to lup sum entrepreneurs who pay real income taxes to micro, small and medium-sized enterprises in the private sector - payment of minimum earnings assistance (during a state of emergency), and large enterprises payment of 50% of the minimum earnings to employees which determined the termination of work (Articles 116 and 117 of the Labor Law).

This set of measures made a difference in the way it was applied based on the economic strength of the payer.

Namely, it started from the assumption that companies that are classified as large companies have significantly greater economic power than entrepreneurs, micro, small and medium-sized legal entities. In accordance with the above, entrepreneurs, micro, small and medium-sized legal entities have been provided with economic assistance in the amount of net minimum earnings for each person who has an employee status.

For legal entities classified as large, assistance was determined in proportion to the number of persons retained by these employers, although the need for such persons ceased to exist.

Accordingly, this set of measures is aimed at the state effectively bearing part of the burden of payment of earnings to persons for whom there has been a disruption, and which employers - large legal entities retain in employment.

With regard to the implementation of this measure, it should be especially taken into account that it does not enter into the business policy of taxpayers - large legal entities, nor does it limit the number of employees who determine termination of employment (but not termination of employment), or any how it affects the extent of the rights exercised by employees during termination of employment. On the other hand, by the proposed measures, employers are sufficiently stimulated to maintain the existing level of employment, while in the case of entrepreneurs, small, micro and medium-sized legal entities, the greater scope of rights further enhances liquidity in order to maintain business, ie to abandon the initiation of termination proceedings. business.

The third set of measures

The aim of the third set of measures is to preserve the liquidity of economic entities in the conditions of economic crisis expected during and after the end of the emergency caused by the Covid-19 virus pandemic.

With this program, the Government of the Republic of Serbia wants to minimize external influences (falling demand, interruption of supply chains, etc.) and their consequences (reduced employment, illiquidity, etc.) on the business of the Serbian economy.

Specifically, the program provides for two measures:

  1. a program for granting loans for maintaining liquidity and current assets for companies in the segment of entrepreneurs, micro, small and medium-sized economic entities, agricultural holdings and cooperatives, which are registered in the relevant register through the Development Fund of the Republic of Serbia, and
  2. Guarantee schemes for supporting the economy in the conditions of the Covid-19 crisis for loans for maintaining liquidity and current assets for companies in the segment of entrepreneurs, micro, small and medium-sized economic entities, as well as farms through commercial banks operating in the Republic of Serbia.

The fourth set of measures

It refers to the payment of direct assistance in the amount of EUR 100 in RSD equivalent to all adult citizens of the Republic of Serbia after ending of extraordinary sitaution.