Serbia: Rulebook On Interest Rates On Intercompany Loans

Impact on TP Study & Income Tax for 2021

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The Ministry of Finance of Serbia has adopted the Rulebook on interest rates for 2021 that should be applied for the purposes of calculation of income taxes and also can be applied for calculation of witholding tax in case of payment of interest income to a related non-resident legal entities. 

Banks and financial leasing entities: 

• 0,67% short-term loans in RSD; 
• 3,79% long-term loan in RSD; 
• 2,83% loans in EUR and dinar loans denominated in EUR; 
• 3,94% loans in USD and dinar loans denominated in USD; 

• 2,61% loans in CHF and dinar loans denominated in CHF; 
• 3,96% loans in SEK and dinar loans denominated in SEK; 
• 1,88% loans in GBP and dinar loans denominated in GBP; 
• 2,56% loans in RUB and dinar loans denominated in RUB. 

Other legal entities: 

• 3,69% short-term loans in RSD; 
• 3,90% long-term loans in RSD; 
• 2,32% short-term loans in EUR and dinar loans denominated in EUR; 
• 2,83% long-term loans in EUR and dinar loans denominated in EUR; 

• 6,86% long-term loans in CHF and dinar loans denominated in CHF; 
• 1,57% short-term loans in USD and dinar loans denominated in USD; 
• 4,01% long-term loans in USD and dinar loans denominated in USD. 

Compared to 2020, there has also been a general reduction in interest rates for other legal entity types, mainly for short-term loans in USD (RSD loans denominated in USD) and short- and long-term loans in RSD currency. 

The Rulebook entered into force on March 27, 2021.  Interest rates are published in the Official Gazette of the Republic of Serbia, so that related parties can check in advance which interest rates would be applicable in accordance with the “arm’s length” principle for the current year. 

For further information, please contact Ms. Natasa Nedic,  Head of Coordination Western Balkans, at our Eurofast office in Serbia at  belgrade@eurofast.eu.

Eurofast is a regional business advisory organisation employing local advisors in over 23 cities in South East Europe & Middle East (SEEME). The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services in South East Europe & the Middle East.   

10/5/21