FISCAL RESPONSES TO THE COVID-19 PANDEMIC THROUGH REDESIGNING OF CORPORATE INCOME TAX IN THE REPUBLIC OF SERBIA

Abstract

Corporate income tax (CIT) is a fundamental
tool of the fiscal system due to its sensitivity to economic
cycles and the impact it can have on the economic decisions
of enterprises. Although the justification of corporate
income tax has been called into question in the current
academic literature, it is one of the tax forms that can be
used to stabilize and develop the economy, especially after
the crisis. For this reason, this paper provides an analysis
of corporate income tax in Serbia. The paper will focus on
reduced CIT rates and tax incentives. Our work aims to
contribute to the literature in two aspects. The first is to
provide evidence that it is necessary to carry out parametric
reform of corporate income tax. Another is providing
additional literature on the COVID-19 crisis to form the
basis for further economic research.