The Serbian Tax Administration (the “TA”) recently issued the annual plan on tax audits for 2019 (“Plan”), published on the TA’s website.
According to the Plan, the focus will be on the following:
- taxpayers incorporated by non-residents with significant related-party transactions, in particular control of the application of double taxation treaty provisions,
- taxpayers that conducted status changes and VAT assessments of and corporate income tax consequences of the transfer of assets,
- taxpayers trading with oil products, in particular control of the payment of excise duties.
Taxpayers who are in a VAT credit position for over a year will be under particular consideration from the TA.
In field audits, the TA will focus on
(ii) excise tax,
(iii) corporate income tax,
(iv) income tax of entrepreneurs, and,
(v) withholding personal income tax.
Audits will mainly cover the years 2017 and 2018 with respect to the regularity of disclosed corporate income tax and tax on the income of entrepreneurs, and for the years 2017, 2018, and 2019 with respect to VAT, excise tax, withholding personal income tax, income tax of non-residents.
The TA will also conduct office audits of the tax on income of individuals from rent, audits of taxpayers who filed requests for tax refunds and audits related to the payment of social contributions for company directors.
Depending on the type of audit and size of the taxpayer, the audits are planned to last from approximately 10 days (85 hours) for micro entities, up to almost two months (240 hours) for large taxpayers.