Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.
Yes we tax in Serbia
New tax reform: No specific information
New tax treaties: No specific information
Local tax advisors
No specific information on the local tax advisors.
Local tax administration
The definition of Permanent Establishment follows the wording of article 5 of the OECD Model:
- Dependent agent who habitually concludes contracts in the name of a non-resident company (except if the activity is limited to purchase of goods);
- Fixed place of business, building site, construction, assembly or installation and any related supervisory activity.
Resident companies are taxed on their worldwide income.
Entities are considered to be resident for tax purposes in Serbia if their legal seat is in Serbia or if their place of management & control is in Serbia.
Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 15%.
Non-taxable income includes the following:
- Dividends received from qualifying participations
Non-deductible expenses includes the following:
- Dividends benefiting from the participation exemption
- Interest in excess of the thin-capitalization threshold
- Fines and penalties
Carry forward: Yes 5 years, but some restrictions may apply.
Carry back: No
Companies should submit the tax return annually before the 31 July of the following year.
Annual tax returns are established by the company on a self-assessment system.
Companies shall pay monthly advance payments the current taxable year.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Serbia are the following, subject to the provisions of an applicable double tax treaty, if any.
There is no WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 20% of the gross amount.
The general rate of WHT on interest is 20%.
The general rate of WHT on Royalties is 20%.
The general rate of WHT on management fees is 0%.
The general rate of WHT on technical services is 0%.
Generally, capital gains are taxed under the regular CIT as general income.
Standard VAT tax rate is 20%
Reduced tax rates are:
- 10% (among others, medicines, basic food, transport of passengers,… );
Zero-rated supplies include, subject to certain conditions:
- exports of goods;
- International passenger transportation
- transport of goods and services directly related to import and export of goods;
Exempt supplies include, subject to certain conditions:
- Certain financial services
- Certain insurance services
- Training and education
Note: exempt transactions differ from zero-rated transactions in that the input VAT associated with exempt transactions is not deductible.
In case where for a tax period, Input VAT exceeds Output VAT, certain non-resident companies (which are not required to register and incur Serbia-VAT in the course of their business activities in Serbia) may apply for a refund.
Refunds are subject to the reciprocity principle, which means that Serbia only refunds VAT to foreign companies in countries that offer similar refunds to Serbia companies.
No other specific information of VAT in Serbia.
The general statute of limitation is 5 years starting at the end of the year in which the tax return had to be filed.
There is foreign exchange control in Serbia. Income and capital could be repatriated provided that certain requirements are fulfilled.
There are thin capitalization rules in Serbia. The interest derived from loans between related parties may not be deductible in case where interest exceeds some ratios (4 times the taxpayer’s net equity).
Do not hesitate to share your experience in Serbia with us in the comments below. Any comments are welcome !