Deregistration of Entrepreneurs: Proof of Settled Tax Obligations Required

According to the current legislation in Serbia, an entrepreneur cannot be deleted from the Business Registers Agency if they have unsettled tax obligations, even in cases where the debt has been rescheduled. This provision is clearly defined in Article 29, paragraph 7 of the Law on Tax Procedure and Tax Administration (ZPPPA), which stipulates that no entrepreneur, nor any legal entity, can be removed from the official register without proof that all tax obligations have been fully settled.

Mandatory Proof of Debt Clearance

The aforementioned article of the Law explicitly states that the competent authorities, including organizations and other entities responsible for registering business entities, cannot delete an entrepreneur if there is no valid proof, no older than five days, that the tax debt has been settled. This proof is issued by the tax authority, i.e., the Tax Administration or the appropriate local tax authority, depending on jurisdiction. This means that all taxpayers, both entrepreneurs and legal entities, are required to provide a certificate of no outstanding debt before they can be removed from the register.

Additional Requirements for VAT-Registered Entrepreneurs

It is important to note that, in addition to regular tax obligations, entrepreneurs registered as VAT payers have additional responsibilities. Before deregistration can occur, the entrepreneur is required to submit a confirmation of deletion from the VAT registry, issued by the Tax Administration. This confirmation must not be older than five days at the time of the deregistration request, which is a key condition outlined in Article 38a of the VAT Law. Without this proof, the Business Registers Agency cannot execute the deregistration of the entity from its records.

Exceptions for Pension Rights

However, the law provides certain exceptions for entrepreneurs. Article 29, paragraph 8 of the ZPPPA allows for the deregistration of entrepreneurs even in cases where obligations related to pension and disability insurance contributions have not been settled, provided that the entrepreneur has acquired the right to a pension in accordance with the applicable laws on pension and disability insurance. In such cases, acquiring pension rights means that obligations to the Pension and Disability Insurance Fund (PIO Fund) have been fulfilled, even if there is an outstanding debt.

Flexibility for Entrepreneurs with Pension Rights

Therefore, an entrepreneur can only be removed from the register if the strict legal conditions are met, although in some situations, such as acquiring pension rights, the law allows for flexibility. This ensures that entrepreneurs who have fulfilled their obligations to the social security system are not unnecessarily kept in the registers, even if there are due, but unpaid, obligations.