Understanding corporate income tax and other business taxes in Serbia is crucial for businesses operating within the country. Alongside corporate income tax, businesses should be aware of other taxes, such as VAT, personal income tax, withholding tax, property tax, social security contributions, and customs duties. It is advisable to consult with a tax professional or refer to the official website of the Tax Administration of the Republic of Serbia for the most accurate and up-to-date information. By fulfilling their tax obligations, businesses can operate in compliance with Serbian tax laws and contribute to the growth and development of the country's economy.
In Serbia, corporate income tax is imposed on the profits earned by both resident and non-resident companies operating within the country. The corporate income tax rate is currently set at a flat rate of 15%. It is important to note that Serbia operates on a worldwide income principle, meaning that resident companies are subject to tax on their global income, while non-resident companies are taxed only on their Serbian-source income.
Value Added Tax (VAT): Serbia operates a VAT system, which is applicable to the supply of goods and services. The standard VAT rate in Serbia is 20%. However, certain goods and services may be subject to reduced rates, including a 10% rate for certain food items, books, and newspapers, and a 0% rate for exports and international transportation services.
Personal Income Tax: While not directly a business tax, it is worth mentioning that Serbia levies personal income tax on individuals residing in the country. The personal income tax rates in Serbia are progressive, with rates ranging from 10% to 15%.
Withholding Tax: Serbia imposes withholding tax on certain types of payments made to non-residents, such as dividends, interest, royalties, and services. The withholding tax rates vary depending on the nature of the payment and may range from 0% to 20%, depending on applicable tax treaties.
Property Tax: Property tax is imposed on the ownership of real estate properties in Serbia. The tax base is determined by the market value of the property, and the tax rate varies depending on the location and type of property.
Local Taxes: Municipalities in Serbia have the authority to levy local taxes on businesses operating within their jurisdictions. These taxes may include local business taxes, advertisement taxes, and communal fees.
Social Security Contributions: Employers in Serbia are required to make social security contributions on behalf of their employees. The contributions cover pension and disability insurance, health insurance, and unemployment insurance. The rates vary depending on the employee's gross salary and the type of insurance.
For detailed and accurate information on business taxes in Serbia, it is recommended to visit the official website of the Tax Administration of the Republic of Serbia. The website provides comprehensive information, forms, guidelines, and contact details for any tax-related inquiries.
Tax Administration of the Republic of Serbia Website: Official Serbian Tax Authority Website