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Taxation in Serbia

Taxation in Serbia

Updated on Thursday 28th December 2017

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Taxation-in-Serbia.jpgThe flexible incorporation process, the stable economy with tendencies for modernization and developments, and the favorable taxation structure have made Serbia a suitable and appreciated business destination for foreign investors interested in setting activities in the central part of Europe. Business persons from abroad should solicit details and information about the taxation system in Serbia before opening a company. Legal advice and complete information in this matter can be offered by our Serbian lawyers.

The corporate tax in Serbia

The corporate tax rate in Serbia is set at 15%, it is collected from companies with establishments in the country, and represents an important source of income for the state. We remind that the corporate tax is imposed on entities with residencies in Serbia or on the ones controlled from Serbia. It is good to know that the dividends paid by a company in Serbia to another Serbian business are not subject to the corporate income tax

Taxable incomes in Serbia

Residents in Serbia are subject to taxation on their worldwide income, as settled in the country. The non-resident persons in Serbia shall pay the taxes on incomes generated in this country. The capital gains, the employment income, the business income, the profit generated in agriculture or the ones derived from the immovable property are subject to taxation in Serbia.

The Value Added Tax (VAT) in Serbia

Just like many countries worldwide, Serbia aligns with the requirements related to the VAT imposed on products and services, except the exports from Serbia. At the moment, the standard VAT rate in Serbia is set at 20%, but a reduced rate of 10% is imposed on particular items like foods, certain medicines and medical devices, utility services, accommodation services, and newspapers. If you want to understand better the tax regime when setting up a business, you can ask our attorneys in Serbia for support.

The withholding tax in Serbia

In Serbia, the withholding tax of 20% rate is imposed on dividends which are paid to a non-resident or foreign shareholder in the country. If a double tax treaty is signed by Serbia, then the withholding tax will be reduced. As for the interests and royalties paid to a foreigner in Serbia, these are levied with the same tax percentage.

Other taxes in Serbia

The property tax in Serbia is imposed on the immovable assets in the country and it represents 0,4% of the market value of the property. The social contributions in Serbia (pensions, unemployment, health insurance) enter the responsibilities of the employer in the country, whether it is a local or a foreign entrepreneur. One should know that in Serbia there is no branch remittance tax, no capital duty, no payroll or capital acquisitions tax.
If you want more details about the tax regime in Serbia or about how you can register a company in this country, please feel free to contact our Serbian law firm.


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