Capital Gains & Cryptocurrency – Serbia

Applied to difference between purchase and sale price. Includes crypto-to-fiat and crypto-to-crypto exchanges. Both are taxable events. Must document acquisition price - if undocumented, entire sale price is taxable base.

Complete exemption if cryptocurrency held continuously for 10+ years before sale. One of most generous holding exemptions globally. Encourages long-term investment. Must prove continuous ownership.

Invest proceeds in Serbian company within 90 days: 50% tax exemption. If invested within 12 months: 50% tax refund. Must maintain investment for 2 years. Powerful tool for channeling crypto profits into traditional business.

Taxed as 'other income' at 20% on market value when mined. Can deduct documented mining costs (electricity, equipment depreciation). Subsequent sale taxed as capital gains with acquisition cost = mining value + costs.

Similar to mining - taxed as other income when received. Market value at receipt is taxable. When later sold, capital gains tax applies on appreciation from receipt value.

Employers can pay bonuses/salary in crypto. Taxed as regular employment income at 10% plus social contributions. Valued at market rate on payment date. Popular in tech companies.

Must file tax return within 120 days after quarter in which gain/loss realized. Example: Q1 gain must be reported by July 31. Both gains and losses must be reported. Losses can offset gains in same year.

Must document: purchase price, sale price, dates, exchange used. For mining: electricity bills, equipment costs. Keep records of all crypto-to-crypto swaps. Tax authorities can request exchange data under KYC regulations.

Virtual currency transfers exempt from VAT without right to deduct previous tax. However, digital tokens linked to goods/services may be subject to VAT. Distinction important for businesses.