Changes to the Serbian Corporate Income Tax Law came into effect on January 1, 2019.
One of the incentives introduced is the abolishment of the 10% limit on the deductibility of advertising and promotional expenses recognized as expenses in the tax balance sheet.
Another significant incentive is that a double deduction of costs directly associated with research and development in Serbia is now allowed.
Furthermore, an 80% exemption from the tax base for income from royalties paid to the holder of intellectual property or similar right, or of rights linked to inventions, is now allowed.
Additionally, a taxpayer making cash investments in equity of a newly founded company involved in innovation activities is entitled to a tax credit of 30% of the investment made. The tax credit may be used 3 years after an investment was made.
Depreciation of fixed assets for tax purposes is calculated for each asset separately using the proportional method and a base consisting of the cost of the asset, applying the following rates:
Katarina Predic Partner, Tax, VAT and Transfer Pricing Eurofast Global Serbia T. +381 11 3241 484 E. katarina.predic@eurofast.eu
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- group I – 2.5%;
- group II – 10%;
- group III – 15%;
- group IV – 20%; and
- group V – 30%;
Katarina Predic Partner, Tax, VAT and Transfer Pricing Eurofast Global Serbia T. +381 11 3241 484 E. katarina.predic@eurofast.eu
Please read our DISCLAIMER