The Law on Financing of Local Self-Government prescribes the obligation to pay the local company display tax for the establishment of a company on business premises. The local company display tax is paid annually, for each prominent name on the business premises that indicates that the activity is carried out there.
Entrepreneurs and legal entities that are classified as micro and small legal entities and have an annual income of up to RSD 50.000.000, do not have the obligation to pay the local company display tax.
Exceptions are entrepreneurs and legal entities engaged in the following activities:
- banking, property and personal insurance,
- production and trade in oil and oil derivatives,
- production and wholesale trade in tobacco products,
- cement production,
- postal, mobile, and telephone services,
- electricity industry,
- games of chance and
- night bars and discotheques.
Therefore, if a business entity did not engage in any of the listed activities and did not realize an annual income higher than RSD 50.000.000 during the previous year, there is no obligation to pay the company display tax.
Also, the Decree on criteria for determining activities that affect the environment stipulates the mandatory payment of the eco-tax for all legal entities, entrepreneurs, and associations.
The Decree has been in force since 2019, and the amount of the eco-tax is determined annually and paid in 12 monthly installments.
The amount of the eco-tax depends on the predominant activity and whether the business entity is a large, medium, small or micro legal entity or an entrepreneur. Therefore, the amounts that business entities must pay in the name of the eco-tax range from RSD 5.000 to RSD 2.000.000, depending on the size of the company and the degree of its environmental impact.
The deadline for submitting the applications for the local company display tax and the eco-tax is July 31. Given that July 31 is a Sunday, this deadline is moved to the first working day, that is, Monday, August 1, 2022.
