Program of Direct State Support From the Budget of the Republic of Serbia to Private Sector Entities

At the session, the Government passed a Decision determining the Program of direct state support from the budget of the Republic of Serbia to economic entities in the private sector in order to mitigate the economic consequences caused by the epidemic of COVID-19 disease caused by SARS-CoV-2 virus. The program determines which subjects are entitled to direct state support, what is the amount of direct state support, as well as the procedure on how to apply for direct state support.

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Subjects entitled to direct state support

Direct state support is provided to micro, small, medium and large companies, but also to entrepreneurs. The right to direct state support is excluded for large legal entities, namely banks, insurance companies, financial leasing providers, as well as payment institutions and electronic money institutions.

Total amount of direct state support

Companies in the private sector will be entitled to payment of direct funding from the budget in the amount of 50% of the minimum net salary, i.e. RSD 15,450.12 per employee. The direct benefits in question will be paid in three months, in April, May and June of this year. The received amount may be used exclusively for the payment of salaries and compensation of salaries to the employees, and no later than July 30 of this year.

Procedure

Companies may accept the state support by giving a statement on the portal of the Tax Administration e-Uprava. The statement can be given in the same manner as when applying for a tax return.
It is important to note that the statement is given for each investment separately, no later than the last day of the month preceding the month in which the direct support is paid.

Loss of right to state support

Companies and entrepreneurs lose the right to state support if in the period from the date of entry into force of the Program until the expiration of three months from the last payment of state support, the company or the entrepreneur reduce the number of employees by more than 10%. Also, economic entities that pay dividends from the day the Program enters into force until the end of 2021 are not entitled to the payment of state support.