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Serbia

Taxes

Want to setup a company in Serbia? This will tell you about taxation for a LLC (DOO) which is the most common company structure in Serbia.

Serbian resident entities are liable to tax on their worldwide income. The established tax rate for income earned abroad, from our research, and these things do change, is 15%. Serbia doesn't have major incentives to remit income earned abroad. Taxes are reasonable in Serbia because the income corporate tax rate is 15%. This ranks Serbia as 47th overall with regards to corporate tax rate worldwide.

The valued added tax rate is 20.00%, that ranks Serbia as 134th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute 17.90% to the equivalent of a social security fund and an employee will contribute 19.90%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 126 hours. Contributing to this is the number of yearly labor tax payments, which is 12 in Serbia.

Thin capitalization rules are in play. Thin capitalisation refers to any sort of laws on a business on its debt-to-asset ratios. Dividends distributed between resident companies are not taxable. Dividends received from a foreign company are subject to corporate income tax, but if the recipient holds at least 10% of the shares of the distributing company, it may be eligible for a credit of tax foreign paid. A dividend is a distribution of a company's earnings, voted by the board, to a particular class of shareholders.Dividends can be either stock, cash, or property. Capital Gains are treated as business income and subject to Corporate Income Tax standard rate. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 20%. Which means that the relevant tax authorities expects companies to withhold 20% of interests remitted abroad. The dividends withholding tax rate is 20%. Which means that the relevant tax authorities expects LLC (DOO)'s to pay tax on 20% of dividends remitted abroad. Royalties are subject to a withholding tax rate of 20%. This means that a LLC may have to withhold 20% on its payments on royalties to non-residents. Payments to residents of tax havens may be subject to a withholding tax rate of 25%. Rates may be reduced under a tax treaty.
There is no known tax on wealth in Serbia. There are inheritance, transfer and real property taxes in Serbia. There are no commonly used research and development tax incentives in RS.

The above is not tax or legal advice for your particular circumstances. We can point you to an expert in Serbia who will advise you. Click the free consultation button above.

Country details

Serbia
RSD
Belgrade
Europe
Serbian, Hungarian, bs, rom
7,344,847

Tax treaties

Country Type Date Signed
Slovakia DTC  2001-02-26
Lithuania DTC  2007-08-28
Sweden DTC  1980-06-18
Pakistan DTC  2010-05-21
Netherlands DTC  1982-02-22
Indonesia DTC  2011-02-28
Germany DTC  1987-03-26
Former Yugoslav Republic of Macedonia DTC  1996-09-04
Greece DTC  1997-06-25
Czech Republic DTC  2004-11-11
Finland DTC  1986-05-08
Belgium DTC  1980-11-21
Slovenia DTC  2003-06-11
Georgia DTC  2012-04-04
Estonia DTC  2009-09-24
Poland DTC  1997-06-12
Ghana DTC  2005-05-25
Tunisia DTC  2012-04-11
China DTC  1997-03-21
Italy DTC  1982-02-24
Croatia DTC  2001-12-14
United Arab Emirates DTC  2013-01-13
Hungary DTC  2001-06-26
Ireland DTC  2009-09-23
Malta DTC  2009-09-09
Albania DTC  2004-12-22
Norway DTC  1983-01-10
Latvia DTC  2005-11-22
Cyprus DTC  1985-06-29
France DTC  1974-03-28
Switzerland DTC  2005-04-13
Russian Federation DTC  1995-10-12
Canada DTC  2012-04-27
Azerbaijan DTC  2010-05-13
India DTC  2006-02-08
Denmark DTC  2009-05-15
United Kingdom DTC  1981-11-06
Spain DTC  2009-03-09
Romania DTC  1996-05-16
Qatar DTC  2009-10-02
Ukraine DTC  2001-03-22
Austria DTC  2010-05-07
Morocco DTC  2013-06-06

Tax treaties Map

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Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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