Income Tax in Serbia

Income Tax in Serbia

Updated on Tuesday 18th August 2020

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The business-friendly tax regime of Serbia is appealing to local and foreign entrepreneurs who choose this country for establishing or developing companies. The corporate income tax is set at a 15% rate and it is one of the lowest in Europe. We mention from the start that Serbia harmonizes with the EU legislation and directives in terms of taxation. Our Serbian lawyers are at your service if you need legal advice and support for tax registration in Serbia. We can also help you start a business in Serbia by taking care of the formalities and steps involved in the formation of a company.

What is the corporate income tax in Serbia?

As mentioned earlier, the corporate income tax in Serbia is set at a standard rate of 15%, representing one of the lowest taxes of this kind among the European countries. It is a well-known fact that international entrepreneurs look for an attractive tax regime before starting the business operations in a specific country, so having one of the lowest taxes makes Serbia a good business candidate. Here are some important details about the corporate income tax in Serbia that you might find it useful:
  1. The corporate income tax of 15% rate is imposed on the worldwide income of companies in Serbia.
  2. Non-resident companies with establishments in Serbia are levied only on the income generated in the country.
  3. The capital gains are also levied with the corporate income tax of 15% rate. A 20% rate applies to non-resident entities.
Entrepreneurs wanting to start a business in Serbia are suggested to talk to one of our Serbian lawyers and solicit complete information about the income tax in Serbia. This is one of the most important taxes in the country that needs to be considered and verified by entrepreneurs from abroad. You can also solicit us for registering a business in Serbia. Here is an infographic that explains more:
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Other taxes in Serbia

The VAT is another important tax in Serbia, set at a standard rate of 20% for most of the products and services available for sale. However, a reduced rate of 10% applies to certain foodstuff, publications, newspapers, public transportation, utilities, and many more. Also, there is no VAT for printing and sale of publications, education services, public broadcasting services, and many more. If you have a company that sells goods and services on the market you should observe the rules for tax registration in Serbia. This is where you can solicit the support of our attorneys in Serbia. They can also help you obtain the EORI number. Here are other taxes imposed in Serbia:
  • consumption tax imposed on coffee products, alcoholic beverages, tobacco, electricity, oil derivates;
  • the property tax of 0.4% rate paid by homeowners in Serbia;
  • 20% tax rate imposed on copyright and property profits from gambling activities;
  • the personal income tax of 10% imposed on salaries in Serbia.
The tax regime in Serbia is appealing to foreign investors, nevertheless, it is advisable to have legal support when dealing with the tax registration and applicable formalities. You can get in touch with one of our Serbian lawyers and find out all you need to know about taxation in Serbia.

Why invest in Serbia?

Serbia is a solid and appreciated business hub and destination that offers a great tax regime, numerous business possibilities, a great environment for development, plus fast incorporation of companies. These are the main attributes that describe Serbia in terms of business and investments. The manufacturing sector in Serbia is highly developed and home to a wide range of companies from abroad that benefit from minimal costs, tax incentives, and other encouragements. The strategic geographic location of Serbia is also important to international entrepreneurs in terms of business and collaboration. In addition, foreigners also enjoy the free trade zones of Serbia and specific tax exemptions. We have also gathered some facts and figures about Serbia’s economy and business direction that might be helpful to foreign entrepreneurs interested in starting a business in Serbia:
  • about USD 44 billion was the total FDI stock for Serbia in 2019;
  • 70% of the FDIs registered in Serbia come from European countries;
  • the 2020 Doing Business report issued by the World Bank ranks Serbia 44th out of 190 economies in the world;
  • around USD 4,1 million was the value of greenfield investments in Serbia in 2019.
International entrepreneurs looking for extra details about the tax regime in Serbia are invited to contact our team of lawyers in Serbia. Our advisors can also give full support for those entrepreneurs wanting to start a business in Serbia.