Easier way to collect debt - Finance Ministry proposes amendments to several regulations

Finally, there will be an easier way for tax debtors to come out of the vicious circle of indebtment. According to applicable regulations, every dinar tax debtors pay to service their accumulated debt is first used to cover transaction costs and interest and then, if anything remains, to reduce the principal as well. However, interest is also calculated on the principal, which sends debtors back to the vicious circle.

Judging by the amendments to the Law on Tax Procedure, a draft of which will soon be discussed by the lawmakers of Serbia, the order in which the repayment is done will be completely the opposite starting from the New Year.

Namely, debtors will first reduce their basic obligations, then interests, while the costs of transaction come last.

Ministarstvo finansija Republike Srbije

tax debtors

debt repayment

debt service

Law on Tax Procedure

Finance Ministry

tax debt