Paying Taxes in Serbia

1. What is the corporate tax rate in Serbia?

The corporate tax rate in Serbia is among the lowest rates in Europe, with only 10%.

2. What is the VAT in Serbia?

In Serbia, the standard VAT rate is 18%, but there are several goods and services that benefit from a reduced VAT rate of 8%, such as food, medicines, textbooks, newspapers, accommodation, firewood or natural gas. Also, there are also some exceptions, when the VAT rate is 0%.

3. How can the VAT be refunded in Serbia?

In order to get a VAT refund, you can file for it yourself or you can hire a firm that will take care of the entire procedure. Anyhow, the process itself is not very complicated, all you have to do is submit an application form, together with a certificate of VAT status and the invoices with the local tax authorities, in their local language.

4. What is the dividend tax in Serbia?

If the dividends are paid to a nonresident, the tax is 20%, unless there is a tax treaty that states differently.

5. Are there any incentives for foreign investors in Serbia?

Serbia has come with a rich set of incentives for foreign investors, starting with a low corporate tax rate of 10%. In addition to that, taxpayers who invest more than 7,000,000 EUR and employ 100 people are exempt from profit tax for 10 years. Moreover, Serbia offers the possibility of free transfer of profits and repatriation of invested capital. There are also several raw materials and equipment that can be imported duty-free.

6. Why do I need a local accountant for my business in Serbia?

All documentation that must be provided to the local authorities has to be in line with the local accounting law, so a Serbian accountant will be a better choice for your business, let alone the fact that the papers will not have to be translated from your language and submitted to errors.