Expat Serbia

Taxes

Taxes are levied by the government and the local communities (property taxes).

• Corporate income tax
• Personal Income Tax
• Property tax
• Value added tax (VAT)
• Tax on transfer of absolute rights
• Inheritance and gift taxes
• Tax Exemptions
• Customs and excise duty

Taxes are codified in the Corporate Income Tax Law, Individual Income Tax Law, Value Added Tax Law, and Property Tax Law, Law on Tax Procedure and Tax Administration, Excises Law and Customs Law.  A legal entity applies for a Tax Identification Number (PIB) at the moment of registration with the Business Registry Agency. The application is forwarded by the Agency to the Tax Administration who is also in charge of issuing a PIB to natural persons.

Serbia tax environment has become highly competitive compared to other Central and Eastern Europe thanks to numerous benefits you will see below.

Corporate income tax

Taxation of corporations in Serbia is regulated by the Corporate Income Tax (CIT) Law (last amended in 2004) and by subordinated bylaws issued by the Ministry of Finance.

Individuals will be regarded as tax residents:

• if they stay permanently in Serbia,
• if they have their habitual place of abode in Serbia, i.e. if they stay in the country for at least 183 days in a 12 month period that begins or ends in the relevant tax year, or
• if their centre of vital interests is located in Serbia.

Non-resident in Serbia is subject to taxes on profit, for the profit made during business operations via permanent business unit located on the territory of the Republic of Serbia. Corporate profit tax rate in Serbia is among the lowest in Europe and it is set at 10%. Revenues made by the non resident from the resident tax payer, the withholding tax, is calculated and paid at the rate of 20% on various forms of income (dividends, shares in profits, royalties, interest income, capital gains, lease payments for real estate and other assets) by a non–resident. It is not calculated and is not paid if the realized revenue is continuously paid to the permanent business unit of the non-resident taxpayer.

A foreign investor and a company with a foreign investment enjoy tax and customs benefits in compliance with the law.