Serbia: Tax Update 2018

27. February 2018

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Value Added Tax (VAT) Law amendments applicable as of 1st January 2018

  • The supply of goods and services carried out within the implementation of the public & private partnerships contracts with elements of concessions between the grantor of concession and concessionaire is not subject to VAT under specified conditions;

Value Added Tax (VAT) Law amendments applicable as of 1st April 2018

  • The new special taxation regime will be introduced for the supplies of investment gold;

Value Added Tax Law (VAT) amendments applicable as of 1st July 2018

  • All taxpayers will be obliged to submit detailed breakdown of the VAT together with the VAT return;

Corporate Income Tax Law (CIT) amendments applicable as of 1st January 2018

  • Intangible assets are no longer classified into the second depreciation group and depreciated using the declining balance method but depreciated using the straight-line method, whereby the depreciation rate would be determined based on useful life or based on the duration of the contract on the right to use a certain intangible asset;
  • It is mandatory that bank expenses regarding writing-off receivables related to loans granted to natural and legal persons, which are considered as non-performing loans in accordance with the National Bank of Serbia’s regulations, be tax deductible;
  • For the purpose of calculating capital gain/loss, the purchase price of other assets (not only assets subject to depreciation such as real estate) is adjusted to the fair value provided that the change in fair value is stated as income in the period in which this change occurred

Corporate Income Tax Law (CIT) amendments applicable as of 1st April 2018

  • Only market research services, accounting and audit services and other legal and business consulting services paid to non-resident entities are subject to withholding tax, regardless of where such services are rendered or used;

Personal Income Tax Law (CIT) amendments applicable as of 1st January 2018

  • Current tax relief period that refers to employment of new individuals is extended to December 31st, 2019.

Personal Income Tax Law (CIT) amendments applicable as of 1st October 2018

  • The new type of tax relief is introduced for youth development when starting their own business through tax exemption (as well as mandatory social security exemption) for income during the first year of establishing business (in the period of 12 months from the date of establishment i.e. registration);

 

TPA offers an overview of the most important tax innovations in the following CEE and SEE countries in which we operate: Austria, Albania, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia and Slovenia. Investing in CEE/SEE 2018

TPA Newsletter 3/2018: Investing In
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