News from Serbia

  • Forex trading in Serbia: a brief legislative overview
    Forex trading in the Republic of Serbia is regulated by the Law on Capital Markets, the Law on Foreign Exchange Transactions and the Decision on Trading with Financial Derivatives. A Forex company provides demo accounts on certain platforms with real time info, enabling users to practice, while they open real accounts at foreign traders (partners of the Forex company in...
  • Serbia adopts amendments to VAT Law
    On December 28th, 2016, the Serbian Parliament adopted the Law on Amendments to the Law on VAT (Official Gazette of RS, No. 108/2016). The Law came into force on January 1st, 2017, and the greatest impact of this law will be felt by companies trading across borders. The most significant change is the amendment of the criteria for determining the...
  • New incentives for Investors in Serbia
    Serbia entered 2017 with a new Decree on Terms and Conditions for Attracting Direct Investments. During late December, the Government of Serbia amended certain incentives for investors, aiming to create an even more comfortable investment climate, particularly for those planning to invest in the undeveloped parts of Serbia. Among other incentives, the state support will be evident in the aid...
  • Serbia introduces widely-disputed VAT rulebook
    A VAT rulebook introducing a new form – called POPDV – was published in the Serbian Official Gazette no.80/16 dated 30th September, 2016. The rulebook has been met with strong criticism, particularly due to its adoption without consultation and cooperation with the private sector, as well as without taking into account the actual applicability of the amendments. It is believed...
  • Treaty between Kazakhstan and Serbia approved by Senate of Kazakhstan
    The double tax treaty between the Government of the Republic of Serbia and the Government of the Republic of Kazakhstan on the avoidance of double taxation and prevention of tax evasion, signed on 28 August 2015 in Astana, has been approved through diplomatic channels by both parties. The National Assembly of the Republic of Serbia approved the Agreement in 2015....
  • Free Zones in Serbia
    Free zones are physically enclosed and marked parts of the territory of the Republic of Serbia, equipped with infrastructure, where production and service activities can be carried out with certain incentive benefits. Serbia is characterized by a favorable geographic position - it stands at the very door of the European Union and the intersection of Corridor. 10 and no. 7,...
  • Ministry of Finance clarifies registration of foreign entities for VAT purposes
    On May 23, 2016, the Serbian Ministry of Finance announced its clarifying opinion on tax representation of a non-resident entity for the purpose of implementing the Law on Value Added Tax and registration for VAT. Although the concept of tax representatives for non-residents existed in previous versions of the VAT Law as well, the latest amendments to the Act adopted...
  • FYR Macedonia Ratifies Double Tax Treaty with United Arab Emirates
    On April 1st, 2016, the FYR Macedonian parliament ratified the tax treaty signed with the United Arab Emirates (UAE) on October 26th, 2015. The ratification law was published in the Official Gazette No. 63 of April 1st, 2016. The treaty covers the personal income tax and profit tax in FYR Macedonia and the income tax and corporate tax in the...
  • Serbia ratifies the agreement on avoidance of double taxation with South Korea
    Serbia | April 2016 | On February 24th, 2016, Serbia expanded its double tax treaty network by ratifying the agreement for the avoidance of double taxation with respect to taxes on income, signed with the Republic of Korea on January 22nd, 2016. The treaty closely follows the standard OECD contract model, but differs in terms of the withholding tax rates...
  • Serbia signs 66th Agreement on Avoidance of Double Taxation
    Serbia | February 2016 | On December 15th, 2015, the Republic of Serbia and the Grand Duchy of Luxembourg signed an agreement on avoidance of double taxation, which is currently in process of ratification in the Parliaments of both countries. The agreement is based on a standard contract model of the OECD model convention and it applies to corporate profit...
  • Serbia makes progress in World Bank’s Doing Business 2016 report
    Serbia/December 2015 The recently-published World Bank’s 2016 Doing Business rankings reveal Serbia’s considerable improvement in the last year. The country now ranks 59th on the overall Doing Business ranking list for 2016 which is a sizable 32 position jump from last year’s rank. The main reasons for the higher ranking can be traced to the introduced reforms which have improved...
  • New Double Tax Treaty between Serbia and Norway signed
    Serbia/November 2015 On 4 September 2015, the Serbian Government approved the draft Treaty for Avoidance of Double Taxation, signed between Serbia and Norway on 17 June 2015. The treaty’s entry into force is pending ratification from both parties. The new Treaty between Serbia and Norway provides inter alia for the following: -a withholding tax on dividends at the rate of...
  • Serbian Government Submits Draft Investment Act
    Serbia/October 2015 A draft Investment Act has been submitted by the Serbian Government to the Serbian Parliament on 2 October 2015. The aim of this piece of legislation is to formally equalize domestic and foreign investors and to guarantee the freedom of investment as well as the rights of domestic and foreign investors according to the best international investment standards....
  • Serbian VAT Act amended
    Serbia/October 2015 The Serbian Parliament has adopted the amendments to the Serbian VAT Act on 28 September 2015. The introduced amendments have been published in the Official Gazette of the Republic of Serbia No. 83/2015 on 3 October 2015. The main reasons for the amendments of the VAT Act are: -further adjustment of the Serbian laws to EU laws -creation...
  • Amendments to the Serbian Excise Duties Act
    Serbia/September 2015 The amendments to the Serbian Excise Duties Act have been published in the Official Gazette of the Republic of Serbia No 55/2015 on June 24 2015. The reasons for the adoption of the amendments are predominantly: -Harmonization of the Serbian laws with the EU laws. By way of these amendments, excise duties are imposed on electricity. -The amendments...
  • New Decree Concerning State Subsidies
    Serbia/April 2015 The Serbian government passed the Decree on conditions and procedures for the Attraction of Direct Investments, which was published in the Official Gazette of Serbia No. 28/2015 from March 20, 2015. The Decree entered into force on March 21, 2015. The Decree provides for subsidies for investments into Serbian market and regulates who can apply for the subsidies,...
  • VAT refund in Serbia
    Serbia/March 2015 Pursuant to the Serbian Value Added Tax Act  (hereinafter ‘the VAT Act’), taxable persons who are not established in Serbia are entitled to obtain a VAT refund if they have purchased movable goods and services subject to the condition that: 1. VAT was entered on an invoice drawn up in accordance with the VAT Act and the invoice...
  • Annual Personal Income tax due by May 15, 2015
    Serbia/March 2015 The Official Gazette of Republic of Serbia No. 28/2015 published on March 20, 2015, announced the amendments to the Rulebook on the tax return form for the assessment of personal income tax due (hereinafter ‘the Rulebook’). The Rulebook is in force as of March 21, 2015 and the main changes are outlined: - Annual personal income tax return...
  • An overview of Transfer pricing in Serbia
    Serbia/January 2015 How was the first year of implementation of Transfer Pricing Rules in Serbia? For some multinationals operating in Serbia 2013 it was not the first year of implementation of the Transfer Pricing Rules. The Law was present in Serbia for more than a decade. More specific, Transfer Pricing Rules have been present since 1 July 2001, but the...
  • Controversial Law on Public Notaries
    Serbia/December 2014 On September 1 2014, the Law on Public Notary came into effect in Serbia. This Law was already passed in 2011, but it was postponed twice because of low levels of interest from candidates in taking the exam for this title. As part of the legal and judicial reform programme in Serbia, some of the main reasons for...
  • Reactions to FATCA regulations’ application in Serbia
    Serbia/October 2014 The application of FATCA regulations by some of Serbian Banks, and more specifically the required consent for collection and delivery of personal data and information about their bank account to the IRS as a prerequisite to open a bank account, have provoked strong reactions of Serbian citizens. The Foreign Account Tax Compliance Act (FATCA) is a set of...
  • Serbia – Armenia treaty ratified by Serbian parliament
    Serbia/September 2014 After Georgia, Canada, Tunisia and Vietnam, with which Treaties for avoidance of double taxation became applicable from 1 January 2014, the list of 54 states will soon be extended by Armenia, the agreement with which was ratified in July. The treaty on the avoidance of taxation between the Government of the Republic of Serbia and the Government of...
  • Transfer Pricing & Tax Avoidance
    Serbia/August 2014 The introduction of Transfer Pricing in the domestic legislation of Serbia is a very recent development. In 2012 the transfer pricing provisions were introduced in the Serbian Corporate Income Tax Law (thereafter CITL) and were later expanded in the Transfer Pricing Rulebook. This Rulebook was published on 12 July 2013 in the Official Gazette of the Republic of...
  • Eurofast; Transfer Pricing in Serbia
    March 2014 Transfer pricing (TP) continues to be the most significant international tax issue affecting companies or Group of companies with related party transactions including those between a foreign legal entity and its Serbian permanent establishment. In Serbia the transfer pricing legislation follows the OECD Guidelines and requires that transactions between related parties should be carried out in an arm’s...
  • Interest on Loans from/to Related Parties in Serbia
    Serbia/June 2014 According to the new bylaw on interest rates considered to be adhering to the “arm’s length” principle (published in the Official Gazette RS 17/2014), new interest rates have been prescribed with regards to related party financing transactions. These rates will be used to calculate interest income and interest expense arising from loans provided to/from related parties. The proposed...
  • Determining the Income Tax for Non-Profit Organizations in Serbia
    Serbia/May 2014 For 2013, non-profit organizations (which use the General Accounts as regular companies do) are required to submit tax balances on the “PBN 1” form and their tax liability on the “PDN” form per the Rulebook for the contents of the tax return (Official Gazette No RS 24/14). The deadline for submission of the PBN 1 form and the...
  • Decree on conditions required for deferment of tax debt payment
    Serbia/March 2014 The Government of Republic of Serbia has issued a decree detailing the conditions under which a deferment of tax debt payment may be requested by taxpayers. The Decree has been published in Official Gazette no.183 on 6 December 2013 and is effective as of 14 December 2013. The decree prescribes detailed conditions as related to article 73, paragraph...
  • Transfer Pricing Concept
    Serbia/March 2014 The concept of Transfer Pricing is all about prices that are being charged between related parties for both goods and / or services. It now a confirmed global trend that Tax Authorities have a growing interest about Transfer Pricing mainly for two reasons: 1. 60% of the world trade actually takes place within MNE’s and Tax authorities from...
  • Transfer Pricing in Serbia
    Serbia/ January 2014 Eurofast take on Transfer Pricing (TP) legislation in Serbia. An analysis of the general principles of TP including what steps companies operating in Serbia should take to comply with the TP legislation and rules in country and the respective reporting deadlines. What are the general principles of Transfer Pricing in Serbia? According to the Rulebook that was...
  • Amendments to the Law on Social Insurance Contributions for founders-shareholders
    Serbia/December 2013 Amendments to the Law on Social Insurance Contributions have brought about significant changes relating to the social insurance obligation of founders or members of legal entity (company). With these new amendments the founders or the members (shareholders) will be able to pay social contributions in two ways, depending whether there is an employment arrangement is in place or...
  • New Law on Audit
    Serbia/October 2013 In July 2013 the new law on audit has been adopted by the Government of Serbia. The new law is geared towards compliance with the requirements of the new Eight EU directive, as well as aiming to eliminate discrepancies in application of the existing Law. The main changes contained in the new law are outlined below: -The international...
  • The new draft law on accounting
    Serbia/September 2013 After several months of discussion, the Ministry of Finance and Industry has finalised the new draft law on accounting and forwarded to the government of Serbia for further discussion and processing. The main changes contained in the draft are outlined below: -Definition of the term “Other legal entities“  has been clarified and extended; -The legal and internal regulations...
  • Proposed changes to income tax legislation
    Serbia/July 2013 At the beginning of May, Mladjan Dinkic, the Serbian Minister of Economy announced that the government proposes the following changes in the area of income taxation: -Decrease of payroll taxes from 12% to 10%; -Increase of pension contributions from 22% to 24%; and -Increase the limit of flat tax from 3-6 million dinars. The changes are designed to...
  • Serbia Expands Its Double Tax Treaty Network
    Serbia/May 2013 While the end of 2012 in Serbia will be remembered by significant changes in Serbian legislation, the beginning of 2013 is reserved for signing and ratifying already signed double tax treaties. In January and February 2013, four new Double Tax Treaties with Canada, Palestine, Tunisia and Georgia, that were signed in April 2012, have been ratified, and it...
  • Serbia and United Arab Emirates sign double tax treaty on income and capital
    Serbia/May 2013 In January 2013, the double tax treaty with respect to taxes on income and capital between Serbia and the United Arab Emirates was signed and on March 15 2013 the Parliament of Serbia ratified the treaty. Article 5- Permanent Establishment  The Permanent Establishment (PE) considered as the fixed place of business such as a place of management, branch,...