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Taxation of the entrepreneur in Serbia - official opinion on some of the questions - Strana 3
Content in English
utorak, 04 decembar 2012 21:20

2. Is the depreciation of the real estate leased by the entrepreneur within self-employment recognised as expenditure for the tax purposes of the taxpayer?

2. Under provision of Article 35 of the law it is stipulated that adjustment of income and expenditure, then calculating capital gains and losses, the tax treatment of losses from the previous years and transfer prices are reported in the tax balance sheet of the entrepreneur in accordance with the appropriate provisions of the Law on Corporate Profit Tax, unless the law prescribes it differently.

In accordance with Article 35a of the law, depreciation of fixed assets is recognised to entrepreneurs as expenditure in the amount and also in the manner stipulated for legal entities by the law governing corporate profit tax and by corporate bylaw issued under that law.

Under provision of Article 10 paragraphs 1 and 2 of the law on corporate profit tax it is stipulated that the depreciation of fixed assets is recognised as expenditure in the amount and also in the manner stipulated by the law. Fixed assets include material resources whose life is longer than a year and whose individual purchase price at the time of purchasing is higher than the average monthly gross salary per an employee in the Republic, according to the last published data of the federal agency responsible for statistics, except for the natural resources which are not exploited, as well as the intangible assets, except for the goodwill.

Fixed assets are classified in five groups, and fixed assets which are classified in the 1st group with the depreciation rate of 2.5% are real estate.

The classification of fixed assets in groups and methods for determining depreciation of fixed assets are more precisely determined by the Rulebook of the Classification of fixed assets into groups and the method of determining depreciation for tax purposes (Hereinafter: The Rulebook).

According to Article 3 paragraph 1 to 3 of the Rulebook, depreciation of fixed assets classified in the 1st group of depreciation is determined by the application of proportional methods for each particular good, by the application of stipulated rate to the value of purchase of the fixed asset, and when these assets are obtained during the tax period, depreciation is determined with application of the proportional method in proportion to the time when the depreciation began until the end of the tax period. In accordance with Regulations on Accounting and Auditing and IAS, that is IFRS, depreciation begins on the day when fixed assets are available for use.

Having in mind the stated provisions of the Law, Law on Corporate Profit Tax and the Rulebook, depreciation of real estate which is leased within self-employment (the lease of real property) can be recognised in the tax balance sheet, under the conditions and in the manner provided by the law and the Rulebook.





 
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