Economy and Banking Sector of Serbia

Personal Income Tax

Personal income tax is levied on an individual's wages, salaries, and other types of income. Because of exemptions, deductions, and credits, most individuals do not pay taxes on all of their income.

Personal Income Tax Rates in Serbia: 10.0 - 15.0%

In Serbia progressive tax rates from 10.0% to 15.0% are applied to personal income.

An example of calculating a tax amount for personal income from 20,000 EUR to 100,000 EUR is shown in the Table 2. The calculation is done for a single taxpayer, social security contributions are not taken into account. Effective tax rates less than 15,00 % are considered taxpayer-friendly, while the rates more than 35,00 % are considered aggressive.

Further Information

• How Much Personal Income Tax Do You Pay in Europe?

Corporate Income Tax

Corporate Income Tax Rate in Serbia: 15.0%

In Serbia a flat tax rate of 15.0% is applied to business income.

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Serbia: 0.0 - 20.0%

Withholding tax rates applied on payments of interest and dividends in Serbia are shown in Table 3.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Serbia: 27 Signed Agreements

Serbia signed DTAs which already came info force with the following jurisdictions:

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

• spontaneously;
• on request;
• automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Automatic Exchange: No Commitment to Start

Serbia didn't sign the automatic information exchange agreement and didn't indicate a timeline of the start of the automatic information exchange.

Automatic Excnange: 0 Bilateral Agreements to Receive Information

Serbia has not singed any bilateral agreements to automatically receive information.

Automatic Excnange: 0 Bilateral Agreements to Send Information

Serbia has not singed any bilateral agreements to automatically send information.

Further Information

• Automatic Exchange of Information on Financial Accounts
• Countries Which Will Not Automatically Exchange Account Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

Serbia agreed in substance to use FATCA on 30 June 2014 (Intergovernmental Agreement Model 1): the text of the IGA has not been released and financial institutions operating in Serbia are allowed to register on the FATCA website consistent with the treatment of having an IGA in effect provided that Serbia continues to demonstrate firm resolve to sign the IGA as soon as possible.

Further Information

• FATCA and European countries