Serbia

Serbia

Belgrada

Serbia is an official candidate Country for European Union membership: Serbia is a member state of several international organizations: The UN, the Council of Europe, OSCE, Interpol, World Bank, etc. The official currency of Serbia is Serbian dinar. The official language is Serbian. 

Serbia has concluded double taxation prevention treaties with over 50 countries; several countries are yet to ratify this treaty. 

The corporate tax rate is 15%. Dividends earned by and paid to a non-resident are subject to tax deduction at source at the rate of 20%, however, the rate may be reduced under a double taxation prevention treaty. In addition, for dividends distributed to any legal entity, and to residents of tax heaven jurisdictions, the applicable rate is 25%. The same way are taxed royalties, interest and rent of movable and immovable property. 

Standard VAT rate is 20%, reduced VAT is 0%. In some cases, VAT exemption applies (e.g. export) 

Company can be incorporated remotely; nonresident individuals and/or legal entities can be appointed as Director and/or shareholder. There is no visit required for a Bank account opening. 

Serbian companies should maintain accounting records and make advance payments on corporate tax on a monthly basis. The annual financial statements are prepared every year. The duration of a fiscal year is 12 months and it is usually equal to a calendar year, but the company has the right to choose other dates. If a company is registered for VAT, it must submit VAT returns: 

  1. Companies with taxable income exceeding 50 mil of Serbian dinars, must submit VAT returns once a month, within 15 days from the end of the tax period; 
  2. Companies with taxable income below 50 mil of Serbian dinars, must submit VAT returns once a quarter, within 20 days from the end of the tax period.