New Tax Rules for Companies in Liquidation or Bankruptcy in Serbia

Updated Tax Regulations Effective from 2025

The Ministry of Finance in Serbia has adopted amendments to the Rulebook on Corporate Profit Tax Returns, introducing significant changes that impact companies undergoing liquidation, bankruptcy, or status transformations such as mergers and spin-offs.

Expanded Reporting Obligations for Business Restructuring

One of the most notable updates is the obligation for legal entities involved in corporate status changes to submit a detailed report on the allocation of rights and obligations. This applies to both predecessors and successors in these corporate transformations.

The report must include:

• Data on liabilities and overpayments related to public revenues
• Information on tax incentives transferred to the newly formed entity
• Details of assets and liabilities recorded after the restructuring

These updates aim to enhance transparency, and such data will need to be submitted through specific forms, including a balance sheet, enabling the Tax Administration of Serbia to gain a clearer view of the company’s financial position after structural changes.

Terminology Adjustments and Legal Clarifications

In the latest amendments, certain legal terms have been redefined. For instance, the phrase “continuation of bankruptcy proceedings through insolvency” has been revised to the more precise “bankruptcy of the insolvent debtor”.

Another key change involves the reference date in liquidation procedures. Rather than using the date of decision adoption, the new rule applies the date of the ruling issued by the Business Registers Agency. This provides a more accurate determination of the date when a company ceases to exist.

Revised Deadlines for Tax Filing in Liquidation Cases

Businesses that complete liquidation by December 31, 2024, must still file their final tax returns under the previous rulebook. However, if the process concludes on or after January 1, 2025, the updated rulebook will be enforced.

Even if a company fails to submit a return within the statutory deadline and is later deleted from the registry, the obligation to submit a tax return remains. In such cases, the new tax rulebook still applies.

Non-Resident Branches Must Comply with New Requirements

Foreign companies operating branches in Serbia will now be treated similarly to domestic companies. If a non-resident legal entity closes its Serbian branch, it will also be required to submit a final tax return in accordance with the updated rules.

Implementation Date

These regulatory changes come into effect on March 14, the day after their publication in the Official Gazette of the Republic of Serbia, and apply to all tax procedures starting from January 1, 2025.