German-Serbian Chamber of Commerce Makes Recommendations for Abating Negative Consequences of Coronavirus

The entire economy, from small and medium companies to large industrial facilities, is affected by coronavirus. For that reason and because of the high degree of connection between the business flows, it is especially important that companies get help proportional to their size.

The German-Serbian Chamber of Commerce (AHK Serbia) has welcomed the decision of the Government of Serbia to approve a set of measures of help to Serbian economy in order to overcome the consequences of coronavirus and itself proposed a set of measures for abating the negative consequences of coronavirus.

– This is the only way for the economy to recover as soon as possible after the direct threat is over. We hereby also want to emphasize that success in executing the measures largely depends on their being implemented on time, as negative consequences to companies and jobs are seen quickly – AHK Serbia says in its press release.

Some of the measures proposed by AHK are:

Tax policy measures which should contribute to overcoming the problem of liquidity

The following measures should contribute to overcoming the problem of liquidity and delayed payments:

– Reduction or total removal of wage taxes or advance corporate income taxes under the simplified procedure for 2020.

– Removal of default interests and penalties for late tax payments.

– Suspension of tax and contribution payments, or enabling payment in installments under a simplified procedure.

– Exemption from tax on overtime work in the fields relevant to the functioning of the system.

All measures should be processed by the Tax Administration immediately upon receipt. The filing of requests under a simplified procedure should be enabled.

Postponement of payment of contributions for social insurance

All companies closed by official decision as a measure of protection against the spreading of coronavirus should have their March, April and May contributions for social insurance postponed.

Other companies, which work at a reduced capacity or have liquidity problems related to coronavirus should be enabled to file requests for postponement of contribution payment or payment in installments under a simplified procedure. Default interests on payments for March, April and May should be removed.

Government's measures related to financing and securing of liquidity

– Providing a state guarantee which would enable banks to secure the liquidity in small, medium and large companies.

– Guarantees for export-oriented companies.

– A fund for non-refundable loans and aid to companies affected by the crisis.

– A fund for aiding single-member business entities, entrepreneurs and non-profit organizations.

These guarantees should enable companies to survive the crisis for a period of time. Especially companies which were competitive before the crisis should be provided with funds.

Aid to small companies should help save these business entities, which are especially sensitive to every drop in business activities.

Special measures in labor law

– Enabling the reduction of salaries to the minimum wage level, while the state provides compensation to employees up to the net salary amount.

– Providing a possibility of not complying with the rule on the height of the earnings defined by the incentives contract, for the duration of the crisis.

– Supporting parents with children under 12 in the form of additional payments to the companies where the parents are employed, whereby the companies would be obliged to provide the parents with an additional annual leave for the purpose of child care.

Extension and termination of deadlines

– Extension of deadlines for filing annual reports by up to 12 months after the expiration of the business year.

– Enabling GMs by law without the need for a previous decision by members about whether it is possible to hold GMs by phone or video link.

– Extension of the deadline for the holding of regular shareholders' sessions by up to 12 months from the expiration of the business year.

AHK Srbija

German Serbian Chamber of Commerce

measures

proposition of measures

coronavirus

negative effects of coronavirus

removal of wage tax

postponement of tax payment

guarantee for export oriented companies

fund for non refundable loans

lowering of salaries

labor law measures

removal of default interests

exemption from overtime work tax

GM deadlines