An eco-tax payment is mandatory. The Decree on Criteria for Determining Activities Affecting the Environment defines that all businesspersons (all legal entities and entrepreneurs) who perform the activities must pay an eco-tax.
The decree was adopted and is applied since December 7, 2019. The deadline for submitting the application is July 31, 2020.
The criteria for determining the eco-tax
Criteria for determining the negative impact of activities that affect the environment of legal entities and entrepreneurs are determined within the predominant activity performed by the taxpayer.
The predominant activity, in the sense of this Regulation, is considered as activity which is:
- registered with the Business Registers Agency (BRA) and
- The one by which the legal entity or entrepreneur earned the most income in the previous year.
According to the degree of negative impact on the environment, the activities of legal entities and entrepreneurs are divided according to the activity into those that have:
- great impact on the environment;
- medium environmental impact;
- Small environmental impact.
You can check in the attached Regulation, whether your activity has a large, medium or small impact on the environment.
Tax price list
The amount of the fee you would have to pay depends on two factors, as follows:
- Activities you perform
- Size of legal entity or entrepreneur classified in accordance with the regulations determining accounting: large, medium, small or micro legal entity or entrepreneur.
Based on these two parameters, the annual eco tax can be determined. Below you can see the amounts of the eco tax expressed in RSD, on an annual basis.
Amounts for activities that have a large negative impact on the environment
2.000.000 – large legal entities
500.000 – medium
200.000 – small
20.000 – micro
Amounts for activities that have a medium negative impact
1.000.000- large legal entities
Amounts for activities that have a small negative impact
500.000- large legal entities
Note: Although lawyers do not register with the BRA, they are also required to file the application. Their activity code (69.10) is also on the list of activities, and no exceptions are actually listed within the Regulation.
Payment of the fee
The fee is paid in monthly advance amounts, within 15 days after the end of the month, with the payment to the bank account: 840-714562843-56.
Types of Form
Business entities that perform the activity of freight transport and relocation services submit the application on Form 2. All other business entities should fill in Form 1. The deadline to do this is July 31 2020.
Instructions for filling in the Form 1
You can download the form HERE.
The form consists of the following fields:
Tax identification number– enter the tax identification number of the taxpayer
Company registration number – enter the identification number of the taxpayer from the Register of Classification Units
Business name – enter the full name of the obligor in the form based on the information that is registered with the body responsible for registration
Name and code of the predominant activity registered in the Business Registers Agency – enter the predominant activity registered with the body responsible for registration.
Name and code of the predominant activity from which the highest income is generated in the previous year – enter the code of the activity from which the highest income was generated in the year preceding the year for which the fee is determined
Address and headquarters of the legal entity or entrepreneur – enter the data on the address of the registered office (name of the place where the registered office is located, municipality of the headquarters, street and number of the registered office) of the legal entity or entrepreneur registered with the registration authority
Responsible person – enter the following data:
- Name and surname
The degree of negative impact of the activities of a legal entity or entrepreneur according to the predominant activity- if the taxpayer in the previous year has achieved the most income from the activity that is not registered as such with the registration authority, in this field enter the environmental impact of the activity code (from which the highest income was realized in the previous year) determined in accordance with the Annex to the Regulation.
- Great environmental impact
- Medium environmental impact
- Low environmental impact
Business income of a legal entity or entrepreneur realized in the year for which the fee is determined – enter the data on business income from the income statement.
If you are a legal entity of any size in this field, you should enter business income based on the financial report from the previous year. This means that for the application for 2019, you should enter the total income from 2018. For 2020, you should enter the income from 2019. In this field, you should indicate which year the application refers.
If you have just registered, you should definitely submit this application. In this field, enter that you are a newly registered person.
If you are a lump sum, enter the income from the books of flat-rate taxed entrepreneurs here.
Size of legal entity or entrepreneur classified in accordance with the regulations determining accounting:
- Micro legal entity, i.e. entrepreneur
Units of local self-government on whose territory it performs its predominant activity – If you have registered several business units in different municipalities, in the field “Local self-government units on whose territory it performs the predominant activity, enter all municipalities where you operate. You also need to submit an application in all municipalities. Public revenue administrations will make a decision according to which you will pay, and only in those municipalities where you generate revenue.
If you have several business units in the same municipality, you should submit only one application.
Note: The rulebook does not cover certain activity codes. That certainly does not mean you do not have to pay a fee. It is necessary to write on the application form that your code is not classified by the Regulation. You could enter this in the field name and code of the predominant activity.
Where and how to submit the application
You have to submit the signed and completed form in the local self-government unit, which makes a decision according to which you will pay the eco tax.
Depending on the municipality, the form can be sent by post, and in some cases even via e-mail. We understand that most people want to avoid going to places with many people. In that case, we advise you to check with your accountant if they can do this instead of you. You can also check with your local government for other options of submitting the form. Some of the local governments that we have contacted, also accept scanned applications sent via e-mail.
You can find contact information for Belgrade local governments HERE.
You can find contact information for all other local governments in Serbia HERE.
The Office for Information Technologies and Electronic Administration has announced that electronic submission of applications is possible as of July 18 2020, and is available through the Local Tax Administration portal. The electronic submission of the applications is possible only for year 2020. Applications for year 2019 still have to submitted to the local self-government.