On October 16, 2024, the Ministry of Finance of the Republic of Serbia published draft versions of laws scheduled for adoption by the end of 2024, including the Property Tax Law, the Corporate Income Tax Law, the Republic Administrative Fees Law, and the Law on Tax Procedure and Tax Administration.

The draft proposal of the Law on Tax Procedure and Tax Administration (“Law”) introduces significant changes regarding the application of tax regulations to individuals as taxpayers.

Individual Registry

If the proposed amendments to Law are adopted, the Tax Administration will establish and maintain an Individual Registry, an electronic database of individuals, including:

• Serbian citizens with residence in the Republic of Serbia (“RS”),
• Serbian citizens without registered residence in RS,
• Refugees in accordance with the law regulating refugee status,
• Foreign nationals with approved temporary or permanent residence in RS,
• Asylum seekers, foreign nationals granted asylum or subsidiary protection and temporary protection in accordance with current laws,
• Foreign nationals without a permanent or temporary residence permit in RS but who possess assets, rights, and obligations related to pension and disability insurance or taxpayer status.

The purpose of establishing the Individual Registry is to provide a comprehensive set of data on individuals required by the Tax Administration for the lawful, reliable, economical, and efficient verification of eligibility for rights and compliance with tax regulations, to protect the tax interests of the Republic of Serbia.

What Data Will the Individual Registry Contain?

The Individual Registry will include data sets obtained by the Tax Administration from:

• the central population registry,
• the unified bank account registry of the National Bank of Serbia,
• the unified vehicle registry,
• the registry of legally owned firearms,
• Tax Administration records, including data already held or acquired by the Tax Administration during tax procedures.

Accordingly, the Tax Administration will process data on Serbian citizens such as:

• unique citizen identification number,
• full name and one parent’s name,
• birth and residence information,
• marital status,
• property status and assessed real estate value,
• bank account numbers,
• household members, and similar information.

For foreign nationals, the Individual Registry will include:

• foreign national identification number,
• full name,
• citizenship information,
• residential address,
• passport number and expiration date.

Data from the Individual Registry will be retained in the future database for a period of five years after an individual’s death or ten years from the date of deregistration of residence for individuals who have permanently emigrated from Serbia.

Why Are These Changes Significant?

These changes are particularly significant due to provisions related to determining the residency status in Serbia in accordance with the Personal Income Tax Law.

Residents of Serbia are required to pay tax in Serbia on their worldwide income, regardless of where it is earned (domestically or abroad), while non-residents are only taxed on income earned within Serbia.

According to Serbian regulations, a resident is considered any individual who in Serbia:

• has a registered residence or a center of business and life interests,
• stays, continuously or intermittently, for 183 or more days within a 12-month period that begins or ends within the relevant tax year.

Citizenship is not relevant in determining residency status, as foreign nationals may also be considered (tax) residents.

For these reasons, the Tax Administration will process a range of data on each individual to more accurately determine residency status in Serbia, identifying who has tax obligations in Serbia.

When Are the Amendments to the Law Expected to Take Effect?

If the proposed amendments to the Law are adopted, the establishment of the Individual Registry is expected to begin on January 1, 2026.

This article is to be considered as exclusively informative, with no intention to provide legal advice. If you should need additional information, please contact us directly.