Business Taxation – Serbia

Applied to taxable profit of all legal entities (DOO - LLC equivalent, joint-stock companies). One of most competitive rates in Europe. Tax period is calendar year. Declaration deadline: 180 days after year end.

Expenses for qualifying R&D activities performed in Serbia eligible for double deduction. Effectively reduces tax rate on R&D-intensive businesses. Must document activities properly.

80% of qualified income from registered copyrights, patents, related rights excluded from tax base. Effective rate: 3% on IP income. Does not include income from disposal of rights. Aligns with OECD BEPS modified nexus approach.

Investments in newly established innovative companies: 30% tax credit. Capped at RSD 100 million (approximately €850,000). Must meet innovation criteria and maintain investment for specified period.

Tax losses can be carried forward for up to 5 years. No carryback permitted. Useful for startups and businesses with fluctuating income. Track losses carefully in financial statements.

Capital gains from digital assets or securities completely excluded from tax base if reinvested in Serbian company or investment fund within same tax period. Powerful incentive for keeping capital in Serbia.

For annual turnover under RSD 6 million (approximately €51,000). No bookkeeping required, simplified compliance. Cannot participate in VAT system. Popular for freelancers and small businesses.

For turnover above RSD 6 million or voluntary choice. Tax on actual profit after deductible expenses. Must maintain proper accounting. Can register for VAT if turnover exceeds RSD 8 million (approximately €68,000).

Standard VAT rate 20%, reduced rate 10% for essential goods/services. Once registered, must charge VAT on all supplies. Input VAT can be deducted. Monthly or quarterly reporting depending on turnover.