Serbia

Tax

Guide

Overview of the core tax rules applicable to companies and individuals in Serbia.

Overview

Serbia’s taxation system features a competitive 15% flat corporate tax rate, making it an attractive destination for businesses and investors looking to optimize their tax obligations. Additionally, the country offers significant tax incentives for qualifying investments, including a 10-year tax credit for companies investing more than RSD 1 billion (approximately EUR 8.5 million) while creating at least 100 new jobs.

When navigating taxes in Serbia, understanding both corporate and personal income tax requirements is essential. Tax residents in Serbia are subject to taxation on their worldwide income, with residency established after 183 days of stay within a 12-month period. Furthermore, Serbia implements a standard VAT rate of 20% and a reduced rate of 10%, while capital gains are taxed at 15% for residents and 20% for non-residents. Importantly, individuals must file annual personal income tax returns if their net income exceeds the non-taxable threshold.

In this comprehensive guide, we’ll explore the intricacies of Serbian tax regulations, covering everything from corporate income tax rules and withholding taxes to VAT requirements, personal taxation, and available incentives for businesses. Whether you’re establishing a new company, considering an investment, or simply need clarity on tax identification number requirements in Serbia, this article provides the essential information you need to make informed financial decisions.

Corporate Income Tax Rules for Resident and Non-Resident Companies

Corporate tax regulations in Serbia establish distinct rules for companies based on their residency status. Understanding these fundamental principles is crucial for businesses operating in the Serbian market or considering investment opportunities in the country.

Flat 15% Serbia Tax Rate on Corporate Profits

Serbia applies a uniform 15% corporate income tax rate for all businesses, positioning it among the lowest corporate tax rates in Europe. This rate has remained stable since 2013, providing a predictable tax environment for businesses. Prior to this, Serbia had implemented an even lower 10% corporate tax rate in 2005.

Residency status significantly affects tax liability scope. According to Serbian tax law, a company qualifies as a resident if it is either incorporated in Serbia or has its place of effective management and control within Serbian territory. This distinction is crucial because resident companies face taxation on their worldwide income, whereas non-resident entities are subject to tax only on income generated from Serbian sources.

For non-resident companies, taxation applies exclusively to income derived through a permanent establishment (PE) in Serbia. Consequently, understanding PE qualification criteria becomes essential for foreign businesses with Serbian operations.

Taxable Base Adjustments under Serbian Accounting Law

Calculating taxable income in Serbia begins with the profit disclosed in a company’s annual income statement. Specifically, this accounting profit must be prepared in accordance with the Serbian Law on Accounting, which largely aligns with International Financial Reporting Standards (IFRS).

However, this accounting profit undergoes further adjustments in the tax balance sheet to arrive at the final taxable base. These adjustments primarily relate to:

Non-deductible expenses
Non-taxable revenues
Special provisions for certain industries
Research and development costs, which may qualify for double deduction

Recent amendments to Serbia’s Corporate Income Tax Law have introduced several procedural changes that impact compliance requirements. Notably, there are new clarifications regarding tax return submissions for companies undergoing bankruptcy or liquidation. Moreover, solidary liability has been established for company members who receive assets from liquidated entities.

Furthermore, legal entities resulting from separation must notify the Tax Administration within 60 days about the division of rights and obligations. These changes enhance the transparency and accountability within the corporate tax framework.

Carry Forward of Tax Losses: 5-Year Limitations

Serbian tax regulations permit companies to carry forward and utilize tax losses against future profits, albeit with specific limitations. Essentially, tax losses can be carried forward for a maximum period of five consecutive years. This provision offers businesses some flexibility in managing their tax obligations during challenging financial periods.

It’s important to note that Serbian tax law does not permit the carryback of losses. Therefore, companies cannot use current losses to claim refunds on taxes paid in previous years, unlike in some other jurisdictions.

For international businesses, this five-year limitation requires careful tax planning, particularly for operations that might experience initial losses during market entry or expansion phases. The absence of loss carryback provisions further emphasizes the importance of forward-looking financial strategies when operating in the Serbian market.

The Serbian corporate tax system, despite having one of Europe’s lowest rates, contains various technical aspects that demand thorough understanding. From determining proper residency status to calculating the correct taxable base and strategically utilizing loss carry-forward provisions, these elements collectively form a competitive yet structured taxation framework for businesses operating in Serbia.

Withholding Tax on Cross-Border Payments

Cross-border payments from Serbian entities to foreign recipients are subject to specific withholding tax (WHT) obligations that form a key component of the taxation system in Serbia. These provisions ensure that Serbia captures tax revenue from income flowing to non-residents while balancing international tax considerations.

20% WHT on Dividends, Interest, Royalties to Non-Residents

First and foremost, Serbia imposes a standard 20% withholding tax rate on various types of payments made to non-resident legal entities. This rate applies specifically to:

Dividends and profit shares
Interest income
Royalties, including intellectual property rights
Lease payments for real estate and other assets on Serbian territory

In addition to these standard categories, Serbia has expanded its WHT scope to include specific service-related payments. As of April 2018, payments to non-resident entities for market research services, accounting and auditing services, and other legal and business consulting services are subject to the 20% WHT, regardless of where these services are provided or used.

Apart from the above, the 20% WHT also applies to income earned by non-residents from staging entertainment, artistic, sport, or similar programs in Serbia that isn’t taxed as individual income. This ensures that Serbia captures tax on income generated within its borders even when flowing to foreign entities.

The withholding tax is not applied to dividend payments between Serbian resident entities, establishing a clear distinction between domestic and cross-border transactions.

25% WHT for Preferential Tax Jurisdictions

In contrast to the standard rate, Serbia implements a higher 25% withholding tax rate under specific circumstances. This elevated rate applies when payments of royalties, interest, lease, and service charges are directed to non-resident legal entities from jurisdictions with preferential tax systems.

The Serbian Ministry of Finance maintains an official list of 51 jurisdictions classified as having preferential tax regimes. Some notable jurisdictions on this list include:

Andorra, Anguilla, Antigua and Barbuda
Bahamas, Bahrain, Barbados, Bermuda
British Virgin Islands, Cayman Islands
Gibraltar, Guernsey, Hong Kong
Isle of Man, Jersey, Liechtenstein, Monaco
Panama, San Marino, Seychelles

Under these circumstances, the higher WHT rate applies regardless of where the services are delivered or used. A non-resident entity from such jurisdictions is defined as one that is established, has a registered office, administrative headquarters, or place of effective management within a preferential tax jurisdiction.

1% WHT on Secondary Raw Materials and Waste

For the purpose of promoting environmental responsibility and regulating specific sectors, Serbia has established a special withholding tax rate of 1% on payments for secondary raw materials and waste. This unique provision applies to payments made to both resident and non-resident entities.

The payer must calculate, withhold, and pay this tax at the time of making such payments. Coupled with this obligation is a specific filing requirement – the payer must submit a tax return using the PPDSO form on a quarterly basis. These returns must be filed within 15 days from the end of each quarter.

Even when such payments might be exempt from taxation under a Double Taxation Avoidance Treaty (DTT), the payer is still required to file the tax return, indicating the basis for non-taxation.

Serbia has established an extensive network of double taxation treaties with 64 countries, which may provide reduced rates or exemptions from these withholding taxes. The Multilateral Convention to Implement Tax Treaty Related Measures (MLI) has resulted in amendments to treaties with 41 countries, affecting how WHT provisions are applied in cross-border scenarios.

Value Added Tax (VAT) System in Serbia

Value Added Tax (VAT) represents a fundamental component of Serbia’s fiscal system, applying to most goods and services exchanged in the domestic market. Implemented on January 1, 2005, the Serbian VAT framework generally follows the European Union’s Sixth Directive, establishing a consumption-based tax structure that impacts both businesses and consumers.

Standard 20% and Reduced 10% VAT Rates

The Serbian tax authorities maintain a dual-rate VAT system. The standard VAT rate stands at 20% and applies to the majority of taxable supplies in the country. This standard rate was previously set at 18% before being increased to the current level.

In contrast, a reduced VAT rate of 10% applies to specific categories of goods and services considered essential or socially beneficial, such as:

Basic foodstuffs
Daily newspapers
Medicines and medical devices
Publications
Public transportation services
Utility services
Hotel accommodations
Natural gas
First transfer of ownership on residential buildings

The Serbian real estate sector faces specific VAT implications. Namely, the first transfer of ownership rights for newly built residential buildings constructed after January 1, 2005, is subject to the reduced 10% rate, whereas all other newly built buildings face the standard 20% rate.

VAT Registration Threshold: RSD 8 Million

Serbian law establishes a mandatory VAT registration threshold of RSD 8 million (approximately EUR 68,050). Any entity whose turnover in the previous 12 months exceeds this threshold must register for VAT purposes with the tax authorities. Importantly, this turnover calculation specifically includes supplies of goods and services subject to VAT in Serbia (taxable and zero-rated supplies), excluding equipment and buildings used for business activities.

Previously, the mandatory registration threshold stood at RSD 4 million before being raised to the current level. As an additional point, entities whose taxable supplies fall below the RSD 8 million threshold may opt for voluntary VAT registration.

Foreign entities face distinct registration requirements. Non-resident businesses must register for VAT before commencing any business activities in Serbia if they will supply taxable goods or services, regardless of their turnover volume. Likewise, non-resident providers of electronically supplied services must obtain a Serbian VAT number before providing digital services to Serbian end consumers.

Zero-Rated and Exempt Supplies under Serbian VAT Law

Serbian VAT legislation designates certain transactions as zero-rated, meaning they carry a 0% VAT rate yet still permit the supplier to recover input VAT. These zero-rated supplies encompass:

Export of goods
Transportation and other services directly related to export, transit, or temporary import of goods
International air and river transportation
Entry of goods into free zones and related services
Supplies within free zones
Repair services followed by export

Furthermore, the law specifies supplies exempt from VAT without allowing input VAT recovery. These include:

Financial, banking, and insurance services
Supply of land and rent of land
Transfer of buildings (except first transfer)
Public interest activities (medical services, social welfare services)
Educational services
Insurance and reinsurance operations
Operations with securities

For importations, VAT is payable simultaneously with applicable customs duties, typically at the standard 20% rate. The taxable amount generally corresponds to the value used for customs purposes.

Personal Income Tax and Annual Filing Obligations

Individual income earners in Serbia face a distinct tax framework that applies to both residents and non-residents. Residents must account for their worldwide income, although the exact tax obligations vary depending on income levels and types of earnings.

10% Salary Tax Withheld by Employer

The cornerstone of Serbia’s personal income taxation is a flat 10% tax rate on salaries. This rate applies to all employment income after deducting a standard monthly non-taxable amount.

First and foremost, it’s important to understand that while employees are the taxable persons, employers bear full responsibility for:

Calculating the correct tax amount
Withholding tax from employee salaries
Transferring withheld amounts to the government

This system ensures consistent compliance with Serbian tax regulations at the point of income payment. In effect, most employees need not worry about salary tax payments as these are automatically managed through the payroll process.

Of course, different tax rates apply to other income types beyond employment. Capital income and capital gains face a 15% tax rate, whereas other income categories are subject to a higher 20% rate.

Annual Income Tax Brackets: 10% and 15%

Following the monthly withholding tax, Serbia implements an additional annual income tax for individuals whose total yearly income exceeds a specified threshold. This supplementary tax obligation affects those with earnings above three times the average annual salary in Serbia.

For the 2024 tax year, the non-taxable threshold was set at RSD 4,874,508. Beyond this amount, progressive tax rates apply as follows:

Income Level	Tax Rate	Applicable Income Range (2024)
Lower Bracket	10%	Up to RSD 9,749,016
Higher Bracket	15%	Above RSD 9,749,016

The taxable base for this annual tax consists of the individual’s net worldwide income (for residents) or Serbian-sourced income (for non-residents) minus the non-taxable amount. Subsequently, taxpayers can further reduce their taxable income through personal deductions.

Regarding younger taxpayers, the Serbian tax system offers notable relief. Individuals under 40 years of age benefit from an additional reduction in their taxable income equal to three average annual wages. This provision makes Serbia’s tax system particularly favorable for younger professionals.

Online Filing via PPDG 2R Form and E-Porezi Portal

In recent years, Serbia has modernized its tax filing procedures. Presently, annual personal income tax returns must be submitted using the PPDG 2R form. As of January 1, 2023, this process has moved entirely online, with all submissions processed through the Tax Administration’s electronic system.

Taxpayers access these services through the official E-Porezi portal, which handles various tax submissions. To use this system, individuals must possess a qualified electronic certificate or authorize a representative using the PEP form.

This online system streamlines tax administration in Serbia while maintaining the integrity of the progressive taxation framework. As a result, both residents and non-residents with Serbian income sources can fulfill their tax obligations more efficiently through this digital infrastructure.

Mandatory Social Security Contributions (SSC)

Social security contributions form a mandatory component of Serbia’s employment taxation framework, financing crucial welfare programs throughout the country. These payments fund three primary social insurance categories: pension and disability insurance, health insurance, and unemployment protection. Both employers and employees participate in this system, though their respective contribution obligations differ substantially.

Employee Contributions: 14% Pension, 5.15% Health, 0.75% Unemployment

Workers in Serbia bear the greater portion of social security obligations, with total employee contributions reaching 19.9% of gross salary. This amount breaks down into three distinct components:

Pension and disability insurance: Employees contribute 14% of their gross earnings toward retirement benefits
Health insurance: An additional 5.15% funds the public healthcare system
Unemployment insurance: A smaller 0.75% contribution provides protection against job loss

These contributions are automatically calculated and withheld from the employee’s gross salary by the employer. Importantly, all citizens generating income through salaries, pensions, or fees are legally required to participate in this system. This framework establishes a social safety net while ensuring the financial sustainability of Serbia’s welfare programs.

Annual Income Tax Brackets: 10% and 15%

For the 2024 tax year, the non-taxable threshold was set at RSD 4,874,508. Beyond this amount, progressive tax rates apply as follows:

Income Level	Tax Rate	Applicable Income Range (2024)
Lower Bracket	10%	Up to RSD 9,749,016
Higher Bracket	15%	Above RSD 9,749,016

Online Filing via PPDG 2R Form and E-Porezi Portal

Employer Contributions: 11% Pension, 5.15% Health

Businesses operating in Serbia must make additional contributions beyond those withheld from employee salaries. Employer contributions total 15.15% of gross wages, split between:

Pension and disability insurance: Employers contribute 10% toward the national pension system
Health insurance: A matching 5.15% contribution funds healthcare services

Firstly, these employer contributions represent an operating cost separate from the employee’s gross salary. Secondly, these payments occur simultaneously with employee contributions, with the employer bearing responsibility for calculating and remitting the combined amounts.

The total social security contribution rate from both sources reaches 35.05% of gross salary, making this a significant consideration for businesses operating in Serbia. Ultimately, these payments must be transferred to relevant government authorities by the 15th day of the month following salary payment.

SSC Cap: 5x Average Monthly Salary

Though social security contributions apply to all employment income, Serbian law establishes both minimum and maximum thresholds. The maximum monthly contribution base is capped at five times the average monthly salary published by official statistics at the time of payment.

These thresholds primarily benefit higher-earning employees, as their social security obligations do not increase proportionally once their salary exceeds the maximum base. Besides the upper limit, Serbia has established a minimum contribution base.

Undoubtedly, understanding these contribution rates and thresholds is essential for both employers and employees navigating taxation in Serbia. The mandatory nature of these contributions, coupled with their significant percentage of total compensation, makes them a crucial consideration when calculating the actual cost of employment in the Serbian market.

Capital Gains, Dividends, and Investment Income Taxation

Investment income in Serbia falls under specific tax regulations that differ from standard business income taxation. These provisions govern the tax treatment of capital gains, dividends, and various investment vehicles, establishing distinct frameworks for both residents and non-residents engaging in investment activities in the Serbian market.

15% Capital Gains Tax for Residents

Serbian tax law defines capital gains as income generated through the sale or transfer of real estate, intellectual property rights, shares, securities, investment units, and digital property. For Serbian residents, capital gains are subject to a flat 15% tax rate.

The taxable base is calculated as the difference between the sale price and the purchase price of the assets, adjusted according to specific provisions in the law. In contrast to general income, capital gains are reported separately in the tax balance.

A particularly favorable aspect of Serbia’s capital gains taxation is the long-term holding exemption. Indeed, resident taxpayers can qualify for complete exemption from capital gains tax if they have held the capital assets in question for more than ten consecutive years. This provision makes long-term investments especially attractive within the Serbian tax framework.

For tax management purposes, if the difference between sale and purchase price is negative, a capital loss is recognized. Serbian tax regulations permit these losses to be carried forward against future capital gains for a period of five years.

20% Capital Gains Tax for Non-Residents

Non-resident entities face a higher capital gains tax rate of 20% when generating capital gains on Serbian territory. This elevated rate applies specifically to capital gains realized by non-residents who do not maintain a permanent establishment in Serbia.

The higher rate applies to various transactions, including:

Sale of securities or investment fund units
Real estate transactions within Serbian territory
Transfer of intellectual property rights
Sales of shares in Serbian companies

This differential treatment creates a distinction between domestic and international investors, with the latter facing an additional 5% tax burden on their investment gains. Nevertheless, applicable double taxation treaties may modify these standard rates depending on the non-resident’s country of origin.

Dividend Income Exemption for Resident Companies

Perhaps the most advantageous aspect of Serbia’s investment income taxation is the complete exemption from corporate income tax for dividends paid between Serbian resident companies. As such, dividend payments from one Serbian company to another incur no additional taxation, creating a tax-efficient environment for corporate group structures.

For international investments, Serbian resident companies holding at least 10% of shares in a non-resident distributing company for at least one year qualify for a tax credit for foreign tax paid on the dividends. This provision helps minimize double taxation on international dividend flows.

In stark contrast, dividend payments to non-resident entities are subject to significant withholding taxes:

20% for legal entities
15% for individuals
25% for entities in preferential tax jurisdictions

The differential treatment creates clear advantages for domestic investment structures. Furthermore, it’s worth noting that the dividend tax base in Serbia is 85% of the profit (after corporate tax), and this rate may be reduced to 5% through double taxation avoidance agreements.

This tax framework establishes Serbia as a favorable jurisdiction for domestic investment structures while maintaining appropriate taxation on international capital flows.

Tax Incentives for R&D and Innovation Activities

Serbia actively promotes innovation through specialized tax incentives aimed at businesses involved in research and development activities. These provisions enable companies to minimize their tax liabilities as well as stimulate growth in the technology sector.

Double Deduction for R&D Expenses

The Corporate Income Tax Law allows companies to double deduct R&D expenses incurred in Serbia, effectively halving the tax impact of research investments. To qualify for this incentive, at least 90% of all employees engaged in R&D projects must perform their activities within Serbian territory.

Eligible costs encompass various R&D expenditures, including employee salaries, materials directly related to research, expert consultancy services, intellectual property protection costs, and equipment acquisition. For instance, if a company incurs R&D costs of RSD 500,000, they can deduct RSD 1 million from their taxable base, reducing the corporate income tax from RSD 450,000 to RSD 375,000. Importantly, this benefit applies regardless of whether the research project ultimately succeeds or fails.

80% Exemption on IP-Related Capital Gains

Under the “IP Box” regime, companies can exclude 80% of qualified royalty income from their tax base, effectively reducing the corporate tax rate from 15% to just 3%. This exemption applies to income generated through licensing of registered intellectual property, provided the IP was developed through R&D activities in Serbia.

To benefit from this provision, companies must register their intellectual property with the Serbian Intellectual Property Office by the end of the tax period in which they first apply the incentive. Furthermore, in certain cases, companies utilizing both the R&D double deduction and IP Box incentives simultaneously could potentially reduce their effective corporate tax rate to zero.

30% Tax Credit for Innovation Investment (Up to RSD 100M)

Companies investing in Serbian startups can claim a tax credit equal to 30% of their investment. The maximum credit per startup is capped at RSD 100 million, with an annual limit of RSD 50 million regardless of the number of investments made.

To qualify, the investor must not have previously owned more than 25% of the startup’s shares. Additionally, the investment must remain intact for three years before the tax credit can be utilized.

Eligible startups must meet specific criteria:

Established less than 3 years ago
Annual revenue below RSD 500 million
No dividend distribution for at least 3 years from investment date
Business center located in Serbia

These combined incentives position Serbia as an increasingly attractive destination for innovation-focused businesses looking to optimize their tax obligations while developing proprietary intellectual property and supporting the local startup ecosystem.

Double Taxation Treaties and International Compliance

International businesses operating in Serbia should consider the extensive network of Double Taxation Treaties (DTTs) that may significantly reduce their tax burden. These agreements establish clear rules for avoiding taxation of the same income in multiple jurisdictions, creating a more predictable tax environment for cross-border operations.

Active Double Tax Treaties

Currently, Serbia maintains double taxation agreements with 64 countries worldwide. This comprehensive treaty network spans across all continents and includes nations with which Serbia has strong bilateral relations. Major trading partners such as Germany, Austria, Switzerland, China, Russia, and the United Kingdom are among the countries covered by these agreements.

These treaties primarily address income tax, payroll tax, corporate tax, dividend tax, and property tax. In practice, DTT provisions take precedence over domestic Serbian tax law, often reducing the standard 20% withholding tax rates mentioned earlier to as low as 5% or even 0% in certain cases.

MLI Amendments to 35 Treaties

In June 2018, Serbia deposited its ratification instrument for the OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). This important development modernized Serbia’s treaty network, with the MLI entering into force on October 1, 2018.

As a direct result, treaties with 41 countries have been amended as of 2024, including agreements with Austria, France, Germany, Netherlands, and the United Kingdom. These amendments introduced key mechanisms such as:

Anti-abuse provisions
New beneficial ownership requirements for dividends
Modifications to permanent establishment rules
Enhanced mutual agreement procedures

Tax Identification Number Serbia for Treaty Benefits

To claim treaty benefits, foreign entities must establish tax residency status through appropriate documentation. The primary document used is the Certificate of Tax Residency issued by the Serbian Tax Administration.

For Serbian residents seeking relief under treaties, two primary methods exist: the credit method and the exemption method. Under the credit approach, foreign taxes paid may be credited against Serbian tax liability, whereas the exemption method completely excludes certain foreign-sourced income from taxation in Serbia.

Conclusion

Serbia offers a balanced and increasingly competitive tax environment for both companies and individual investors. Throughout this guide, we explored the fundamental aspects of Serbia’s tax system, which combines a modest 15% corporate tax rate with substantial incentives for qualifying investments.

Tax planning in Serbia requires careful consideration of residency status, as this significantly impacts tax obligations. Resident companies face taxation on worldwide income, while non-residents pay taxes only on Serbian-sourced revenue. Similarly, individuals become tax residents after spending 183 days in Serbia within a 12-month period, triggering global income taxation requirements.

Companies benefit from several advantageous provisions within the Serbian tax framework. Specifically, the five-year tax loss carry-forward option provides flexibility during challenging business periods. Additionally, R&D expenses qualify for double deduction, effectively reducing the tax impact of innovation investments by half. Furthermore, the IP Box regime allows an 80% exemption on intellectual property income, potentially lowering the effective tax rate to just 3%.

Cross-border transactions deserve special attention due to the standard 20% withholding tax on dividends, interest, and royalties paid to non-residents. Nevertheless, Serbia’s extensive network of 64 double taxation treaties often reduces these rates substantially, creating opportunities for tax-efficient international structures.

The VAT system follows European standards with a 20% standard rate and 10% reduced rate for essential goods and services. Companies must register once their annual turnover exceeds RSD 8 million, though voluntary registration remains possible below this threshold.

Personal taxation combines a straightforward 10% salary tax with progressive annual rates of 10% and 15% for high earners. Social security contributions represent a significant cost factor at 35.05% of gross salary, though these are capped at five times the average monthly salary.

Investors should note the favorable treatment of long-term investments, as capital gains tax exemption applies after ten years of asset ownership for residents. Likewise, domestic dividend flows between Serbian companies enjoy complete exemption from corporate taxation.

The Serbian tax system continues to evolve toward greater digitalization, as evidenced by the mandatory online filing of tax returns through the E-Porezi portal. This modernization, coupled with competitive rates and generous incentives, positions Serbia as an increasingly attractive destination for businesses seeking tax efficiency while maintaining full compliance with international standards.

Need legal support? Get in touch — our team is here to guide you every step of the way. When the law gets complicated, we make things clear — and get things done.

Email:

inquiry@injac.rs

Tel:

+381 11 2458 945

Address:

Makenzijeva 17,

11000 Belgrade - Serbia

Contact Us:

Navigating Serbia’s dynamic business environment requires sharp legal insight and reliable support. Injac Attorneys at Law delivers tailored legal solutions across Corporate Law, M&A, Dispute Resolution, Employment, IP, Real Estate, Data Protection, and Tax. Count on us as your trusted legal partner in every transaction.

Serbia

Tax

Guide

Overview of the core tax rules applicable to companies and individuals in Serbia.

Overview

Corporate Income Tax Rules for Resident and Non-Resident Companies

Flat 15% Serbia Tax Rate on Corporate Profits

Taxable Base Adjustments under Serbian Accounting Law

Carry Forward of Tax Losses: 5-Year Limitations

Withholding Tax on Cross-Border Payments

20% WHT on Dividends, Interest, Royalties to Non-Residents

25% WHT for Preferential Tax Jurisdictions

1% WHT on Secondary Raw Materials and Waste

Value Added Tax (VAT) System in Serbia

Standard 20% and Reduced 10% VAT Rates

VAT Registration Threshold: RSD 8 Million

Zero-Rated and Exempt Supplies under Serbian VAT Law

Personal Income Tax and Annual Filing Obligations

10% Salary Tax Withheld by Employer

Annual Income Tax Brackets: 10% and 15%

Online Filing via PPDG 2R Form and E-Porezi Portal

Mandatory Social Security Contributions (SSC)

Employee Contributions: 14% Pension, 5.15% Health, 0.75% Unemployment

Annual Income Tax Brackets: 10% and 15%

Online Filing via PPDG 2R Form and E-Porezi Portal

Employer Contributions: 11% Pension, 5.15% Health

SSC Cap: 5x Average Monthly Salary

Capital Gains, Dividends, and Investment Income Taxation

15% Capital Gains Tax for Residents

20% Capital Gains Tax for Non-Residents

Dividend Income Exemption for Resident Companies

Tax Incentives for R&D and Innovation Activities

Double Deduction for R&D Expenses

80% Exemption on IP-Related Capital Gains

30% Tax Credit for Innovation Investment (Up to RSD 100M)

Double Taxation Treaties and International Compliance

Active Double Tax Treaties

MLI Amendments to 35 Treaties

Tax Identification Number Serbia for Treaty Benefits

Conclusion

Need legal support? Get in touch — our team is here to guide you every step of the way. When the law gets complicated, we make things clear — and get things done.

Email:

inquiry@injac.rs

Tel:

+381 11 2458 945

Address:

Makenzijeva 17,

11000 Belgrade - Serbia

Contact Us:

Email:

inquiry@injac.rs

Tel:

+381 11 2458 945

Address:

Makenzijeva 17,

11000 Belgrade - Serbia

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