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• The set of economic measures for mitigation crises caused by Covid-19

The set of economic measures for mitigation crises caused by Covid-19

The set of economic measures for mitigation crises caused by Covid-19

On the 31st of March 2020, the Ministry of Finance of the Republic of Serbia has presented the set of measures for mitigation of crises caused by COVID-19 pandemic in the total amount of EUR 5.1 billion. The measures refer to the area of fiscal policy, maintaining the liquidity of the economy and direct support to companies. The adoption of these documents, enabling the implementation of the measures, is planned for the first half of April. Measures are intended to support film production companies and freelancers, too, so it is expected to be one of the Serbia`s first steps in helping film crews and industry. Serbia Film Commission member, Crowe RS has made an overview of all the measures that will be adopted and you can find them below.

Fiscal policy measures are:

 

  • The payment of taxes and social security contributions for private sector during the state of emergency will be postponed – the payment will begin in 2021;
  • Deferral of payment of corporate income tax in advance in the second quarter of 2020;
  • Donors are exempted from paying VAT.

Measures dedicated to private sector, to be precise to all freelancers, micro, small and medium entities, imply minimum wage payments, while assistance for large legal entities is 50% of the net minimum wage for employees who got fired.

Measures to maintain the liquidity of the economy will be implemented through: 

  • The Development Fund (for freelancers, micro, small and medium-sized legal entities) – EUR 200 million is foreseen;
  • A Guarantee Scheme for loans that should maintain liquidity and working capital for freelancers, micro, small and medium-sized legal entities. This type of support will be realized through commercial banks, and the total value of the guarantee scheme is about RSD 240 billion.

Speaking about large legal entities, introducing of regulation regarding corporate taxpayers was announced too, as one of the ways of financing economic entities. The aim of this measure is to enable large legal entities to borrow on more favorable terms.

However, entities that have reduced their staff numbers by more than 10% during a state of the emergency (not counting part-time employees whose contracts expired during the state of emergency) and those who have temporarily closed their businesses before the declaration of the state of emergency on March 15th, will not be able to use these measures.