The environmental tax is a mandatory fee imposed on all legal entities, entrepreneurs, and associations operating in Serbia. It is regulated by the Decree on Criteria for Determining Activities That Affect the Environment According to the Degree of Negative Impact (“Official Gazette of RS”, No. 86/2019 and 89/2019).
This tax is determined based on two key factors:
- The primary business activity of the entity,
- The size of the business (large, medium, small, or micro legal entity, or entrepreneur).
The amount of the environmental tax varies depending on these factors, with businesses classified into categories of high, medium, or low environmental impact. The tax rates are set on an annual basis and must be paid in four quarterly installments.
For micro legal entities and entrepreneurs, the annual tax ranges from 5,000 RSD to 20,000 RSD, depending on their impact level. The maximum tax amount cannot exceed 0.4% of the revenue earned in the previous year.
The local tax administration (LPA) issues tax decisions and payment instructions, which are delivered via mail, regardless of whether the application was submitted electronically or in paper form. The tax must be paid within 15 days from the receipt of the decision, and payment status can be monitored via the LPA portal.
Applications for environmental tax must be submitted using Form 1 by April 30, 2025. Submission can be done electronically, provided the taxpayer has an electronic signature, or in paper format at the local government office. In case of any changes affecting the tax calculation, businesses are required to notify the local tax authority within 15 days of the change.
If a business temporarily suspends its operations, as officially registered with the Serbian Business Registers Agency (APR), the environmental tax is not required for the period of inactivity.
Important Advice: Timely payment of environmental tax is crucial to avoid fines and complications, especially when closing or restructuring a business. Unpaid obligations can cause unexpected financial burdens when transitioning from an entrepreneurial business to a Doo (LLC) structure.
For more guidance on tax compliance and business regulations, Tax International offers expert support to help businesses navigate Serbia’s administrative and fiscal landscape efficiently.
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