The deadline for submitting the application for the Environmental Protection and Enhancement Fee for the year 2025 is April 30, 2025.
Applications must be submitted electronically via Form 1 on the Local Tax Administration portal: www.lpa.gov.rs.
Taxpayers are required to submit a separate application to each municipality where they conduct business. Form 1 includes a field for specifying the number of municipalities in which the taxpayer operates. Each local government will then collect a proportional portion of the annual fee.
Key Changes and Required Data
In addition to the number of municipalities, taxpayers must declare:
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Their total revenue based on the Income Statement for 2024 (Note: Previously, only “operating revenue” was declared — this is a significant change.)
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The environmental impact level of their activity, based on the Regulation on Criteria for Determining Activities That Affect the Environment
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The company size, in accordance with the Accounting Law
The annual fee amount is determined based on these two criteria (company size and environmental impact level), and the Local Tax Administration (LTA) will issue a decision, typically delivered through the taxpayer’s eInbox on the eGovernment portal.
Payment Terms
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The fee is paid quarterly, within 15 days after the end of each quarter.
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Until the formal decision is issued, quarterly advance payments should be made based on the previous year’s decision.
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Taxpayers may also opt to pay the full annual amount in advance at the beginning of the year to reduce administrative effort and banking fees.
Indicative Fee Matrix (RSD)
| Company Size | Low Impact | Medium Impact | High Impact |
|---|---|---|---|
| Large companies and entrepreneurs | 500,000.00 | 1,000,000.00 | 2,000,000.00 |
| Medium-sized companies and entrepreneurs | 125,000.00 | 250,000.00 | 500,000.00 |
| Small companies and entrepreneurs | 50,000.00 | 100,000.00 | 200,000.00 |
| Micro companies and entrepreneurs | 5,000.00 | 10,000.00 | 20,000.00 |
Example:
A taxpayer whose activity is classified as medium environmental impact (under the Regulation), and who is classified as a small legal entity (under the Accounting Law), will owe RSD 100,000 annually.
If this taxpayer operates in two municipalities (e.g., has offices in Kruševac and Kragujevac), they must submit two applications and will pay RSD 50,000 to each municipality.
Sample Activities by Environmental Impact Level
Low Environmental Impact (e.g.,):
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62.01 – Computer programming
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62.02 – IT consulting services
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68.10 – Buying and selling own real estate
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68.20 – Renting and managing real estate
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69.10 – Legal activities
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69.20 – Accounting, bookkeeping, and auditing
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70.22 – Business consulting
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73.11 – Advertising agencies
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74.30 – Translation and interpreting
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85.59 – Other education
Medium Environmental Impact (e.g.,):
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31.01 – Manufacture of office furniture
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41.20 – Construction of residential and non-residential buildings
The full list of activities by environmental impact level is available in the Regulation on Criteria for Determining Activities That Affect the Environment and Fee Amounts (Official Gazette No. 30/2024).
Special Rules for Lump-Sum Entrepreneurs (Paušalci)
For lump-sum taxed entrepreneurs:
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Their size is always classified as “micro”.
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In the total revenue field, they must enter the lump-sum income stated in their 2024 tax assessment.
Changes Requiring a New Application
Taxpayers are required to submit a new application if any change occurs that affects the fee calculation.
Examples include:
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Change of company headquarters
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Opening a new office or store in a different municipality
Who is Responsible for Filing?
If a business leases commercial space to another taxpayer who operates a business at that address, the tenant (lessee) is responsible for filing the application for that location.
In other words, landlords do not need to report investment real estate or property intended for sale, since these are not used for conducting business operations.
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