Corporate Tax in Serbia

Corporate Tax in Serbia

Updated on Friday 27th January 2023

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Business-Startup-Costs-in-Serbia.pngOne of the reasons why international investors are attracted by Serbia when it comes to business is the taxation structure which is quite appealing. For instance, the corporate income tax in Serbia is set at 15% rate, and it is one of the lowest in Europe. Would you like to set up a business in Serbia and you don’t know where to start? We recommend you address your inquiries to our team of lawyers in Serbia and find out more about the legal support hey can offer.

What you need to know about the corporate tax in Serbia

Companies with establishments in Serbia must align with the tax structure in this country and pay the corporate tax of 15% rate this kind of tax is based on the net income of an enterprise in Serbia during one business year. Just like in most European countries, the corporate income source is a great source of revenue in Serbia. Here is some information about the corporate income tax in Serbia:
  • The previous corporate tax rate in Serbia was set at 10% rate and was registered in 2005.
  • According to predictions, the corporate income tax of 15% rate will remain the same at least until the end of 2020.
  • A recent incentive refers to an exemption of 80% from the corporate tax to royalties which are paid to the owner of the intellectual property.
  • A tax credit of 30% of the established investments is imposed to brand-new companies registered in the R&D sector in Serbia.
A series of incentives have been implemented this year in Serbia, and foreign companies benefit now from varied encouragements launched by the Serbian authorities that are looking to attract more investments in the country. All the legal aspects related to the legislation on foreign investments in Serbia can be explained by our Serbian lawyers.
Do you want to get a residency in Serbia? The process can last around 8 weeks, depending on the formalities and procedures. Our lawyers can represent you from a legal point of view to ensure that there will be no complexities or legal problems. Those interested must present health insurance valid on the territory of Serbia, as well as proof of the new domicile in this country. Get in touch with our specialists and you will be able to benefit from a free case evaluation.

What are the changes on CIT in Serbia?

Besides the incentives for royalties attained from intellectual properties in Serbia, the authorities introduced the abolishment of the 10% limit on deductibility of promotional expenses and advertising which are normally found in the balance sheet in the company. Moreover, an important incentive has been introduced this year in Serbia and it refers to the double deduction of costs which are straight connected with the research and development sector in Serbia. The authorities continue to improve the tax system on a yearly basis, with the intention of creating an appealing investment environment for all international investors interested in Serbia’s economic sectors. If you want to start a company in Serbia and you are looking for support, feel free to talk to our attorneys in Serbia at any time.

What are the taxes for companies in Serbia?

International companies looking for operations in Serbia must know from the start the taxation structure in the country. Besides the corporate income tax imposed, companies in Serbia are subject to the withholding tax imposed of capital gains dividends, interests and royalties, the value added tax and the annual income tax, plus the social insurance contributions. We remind that the corporate income tax of 15% is one of the lowest among the European countries applying such tax. 

Are companies protected by DTTs in Serbia?

Yes, Serbia signed a series of double taxation arrangements with countries worldwide (65 countries) with the purpose of avoiding the double taxation and paying the taxes only in the country where the business generates incomes. It is good to know that there are special agreements signed with Germany, Sweden, France, the Netherlands, so companies from these countries are subject to a reduced withholding tax of 8%. The Serbian government sustains the foreign investments in the country and continues to simplify the incorporation procedure and the tax returns procedures among other aspects. Knowing the tax regime in a large percent will help overseas investors establish correctly their affairs and activities in Serbia, so legal advice and business management are recommended. Here is where our Serbian attorneys can provide their support and assistance at any time. 
We remind that Serbia signed double taxation treaties with 65 countries, among which we mention China, Romania, Bulgaria, Cyprus, Latvia, Norway, Poland, Greece, Macedonia, Russia, Czech Republic, South Korea, Denmark, Estonia, France, Pakistan, Slovenia, Morocco, Spain, Turkey, Belarus, Austria, Albania, Luxembourg, Vietnam, Montenegro and many more.
If you would like to know more about the tax structure in Serbia, and particularly about the corporate income tax, we invite you to contact our law firm in Serbia and find out legal support and complete information.