1. Obligated entities
   According to Article 4, paragraph 1 of the Law, obligated entities include:

• Legal entities as per Article 2, point 1,
• Other legal entities as per Article 2, point 2,
• Entrepreneurs as per Article 2, point 3 of the Law.

2. Legal entities (Article 2, point 1)
   This category includes:

• Business companies,
• National Bank of Serbia,
• Banks, payment institutions, and electronic money institutions,
• Insurance and reinsurance companies,
• Financial leasing providers,
• Pension funds and voluntary pension fund management companies,
• Investment funds and their management companies,
• Stock exchanges and brokerage-dealer firms,
• Central securities depositories,
• Factoring companies,
• Cooperatives,
• Institutions conducting business for profit,
• Legal entities applying this Law under special regulations.

3. Other legal entities
   This includes:

• Political organizations,
• Trade unions with legal status,
• Foundations and endowments,
• Associations, chambers, churches, and religious communities involved in economic activities.
  These entities are partially funded by public funds and generate some income from the market or membership.

4. Entrepreneurs
   Entrepreneurs are individuals who maintain accounting books under the double-entry system (unless otherwise specified). Since 2019, entrepreneurs who are not flat-rate taxed are required to maintain these records and prepare financial statements.

5. Foreign legal entities and branches
   The Law applies to:

• Foreign legal entities and organizations not required to maintain accounting records or financial statements in their home country,
• Branches of foreign entities conducting business in Serbia.

6. Legal entities in bankruptcy
   Legal entities in bankruptcy must apply the provisions of the Law according to the rules for legal entities.

7. Exemptions
   The Law does not apply to:

• Budgets and public sector beneficiaries,
• Residential buildings,
• Mandatory social security organizations,
• Churches and religious communities, except for their economic activities.

8. Residential buildings and corporate income tax
   Residential buildings and communities are not required to prepare financial statements but may be subject to corporate income tax if they earn market income, such as from renting common space (e.g., for mobile phone base stations or billboards). In this case, they will be treated as non-profit organizations subject to corporate income tax.

Tax International offers the following services:

Accounting services
Tax consulting
Company and business registration
Payroll calculation
Freelance tax calculation
Issuing invoices and similar administrative tasks

We provide both online and onsite services.

+381216619789 +381611301302 office@taxinternational.biz

You can schedule consultations HERE.

For all our clients, consultations regarding reimbursement of employee expenses are completely free.

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