Serbia legal and accounting and tax considerations in 2024

1. The standard corporate tax rate in Serbia is levied on income at the rate of 15%. The tax year is a calendar year but a taxpayer can opt for a different tax year. Advance corporate tax is payable in monthly installments. Tax returns must be filed within 180 days after the end of the tax year, failure to which penalties may be imposed and entities may be banned from doing business;
2. Branches of foreign companies pay corporate tax at the rate of 15% and there is no branch remittance tax in Serbia;
3. The capital gains tax in Serbia is levied at 15% for residents and 20% for non-residents;
4. Companies may carry forward net losses incurred for five years. Capital losses may be carried forward for five years and offset against capital gains. Carryback of losses is not permitted;
5. Withholding tax is levied at i) 20% on dividends, interest, royalties and lease of property paid to a non-resident and ii) 25% on dividends, interest, royalties, and lease of property paid to a resident of a preferential tax jurisdiction;
6. VAT in Serbia is levied on provision of goods and services at a standard rate of 10% or at a reduced rate of 8%;
7. Transfer of property is taxed at the rate of 2.5%;
8. Employers are required to make social security contributions for i) pension and disability insurance at the rate of 13% ii) health insurance at the rate of 6.15% and iii) unemployment funds at a rate of 0.75% of the employee’s basic salary income;
9. Stamp duty is payable according to a tariff based on the value of the document and where there is no tariff, a flat rate applies;
10. Serbia has signed 61 double tax treaties with countries including Canada, China, Denmark, France, Germany, Ireland and the UK;
11. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
12. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.