First set of measures
postponement of the payment of due tax obligations, with later repayment in instalments, at the earliest from the beginning of 2021

• Deferred payment of taxes and contributions on salaries is carried out in order to provide liquidity, maintain economic activity and employment.
• Deferred payment of income tax advances in the second quarter.
  The total estimated effect of these measures is around RSD 161 billion, or 2.9 percent of GDP, over a three-month period.
• Postponement of the payment of taxes on salaries and contributions for the private sector, during the state of emergency, with the subsequent repayment of the obligations incurred in instalments starting at the earliest from 2021. This measure aims to increase the liquidity of all economic entities in the economic sector that pay salaries to employees. Also, this measure refers to the postponement of the payment of income tax from independent activities of all entrepreneurs. The increase in liquidity is reflected in the delay in paying the costs of taxes and contributions to salaries.
• Deferred payment of income tax advances in the second quarter. The measure aims to increase the liquidity of taxpayers by postponing the payment of advance payments for income tax for 2020, which due fall in the second quarter of 2020. For the taxpayers to whom the measure applies, the basic conditions for application are identical regardless of the economic strength of the particular taxpayer.
• Exemption of donors from the obligation to pay VAT. The main goal of this measure is to exempt from VAT those donors who donate their products, i.e. the products they deal with, to institutions that are directly involved in activities aimed at preventing the spread and treating citizens from Covid-19 disease.

 

Second set of measures
financial assistance for entrepreneurs, micro, small and medium enterprises, large companies. The effect of this measure is estimated at about 1.8 percent of GDP)

• Direct financial assistance to entrepreneurs who are taxed at a flat rate and who pay real income tax, micro, small and medium enterprises in the private sector –the financial assistance in the amount of the minimum wage (during the state of emergency), and for large companies the financial assistance in the amount of 50 percent of the minimum wage for employees who received a decision on termination of employment (Articles 116 and 117 of the Labor Law).

Note: This was implemented. In total 232.000 companies applied for it, employing 1.055.000 people.

 

Third set of measures
to preserve the liquidity of economic entities in the conditions of the economic crisis expected during and after the end of the emergency situation caused by the coronavirus pandemic.

With this programme, the Government of Serbia wants to minimize external influences (drop in demand, disruption of supply chains, etc.) and their consequences (reduced employment, illiquidity, etc.) on the operation of the Serbian economy).

The programme envisages two measures:

• Programme for granting loans for maintaining liquidity and working capital for companies from the segment of entrepreneurs, micro, small and medium business entities, agricultural farms and cooperatives that are registered in the relevant register through the Development Fund of the Republic of Serbia,
• Guarantee schemes for support of the economy in the conditions of Covid-19 crisis for loans aimed at maintaining liquidity and working capital for companies from the segment of entrepreneurs, micro, small and medium business entities, as well as agricultural farms through commercial banks operating in Serbia.

The total value of the programmes envisaged by this measure is RSD 264 billion (about EUR 2.2 billion).

 

Fourth set of measures
one-time payment of EUR 100 to all adults in Serbia. The payment is provided in local currency (RSD).

Note: This measure has been implemented. However, each adult who wanted this help had to apply for it online. Those who did not apply did not receive money. Payments are automatically initiated to retirees, without any registration.

 

New set of measures
published on 31 July 2020

• For July and August, the state paid 60 percent of the minimum wage for entrepreneurs and all employees of micro, small and medium enterprises
• Postponed the payment of taxes and contributions for another month (this will cost the state EUR 300 million)
• The “My First Salary” project, which means that the state pay an entrepreneur RSD 20,000 for the employment of one high school student for nine months, and RSD 24,000 for a university graduate.
• Moratorium on loan repayment - banks are given the opportunity to extend the moratorium on loans for at least another two months.

Note: Some things from this last set of measures have already started to be implemented, source: https://www.srbija.gov.rs/vest/481801/danas-isplata-60-odsto-minimalne-zarade.php