Amendments to five Serbian tax laws from 2018 - VAT, corporate income tax, personal income tax, contributions, administrative taxes

Belgrad, 08.01.2018.
National Assembly of the Republic of Serbia has adopted amendments of set of tax laws at its session on 14 December 2017. 

Amendments of laws were published in the ”Official Gazette of RS”, no. 113/2017 from 17 December 2017, and are effective from 2018. Some articles and clauses will be applicable from 2019.

The following laws have been adopted:

  • Law on Amendments and Supplements of Law on personal income tax
  • Law on Amendments and Supplements of Law on contributories for obligatory social security
  • Law on Amendments and Supplements of Law on corporate tax
  • Law on Amendments and Supplements VAT law
  • Law on Amendments and Supplements of  Law on republic administrative taxes

Amendments and Supplements on Law on personal income tax and Law on contributories for obligatory social security

  • The period of existing tax relief related to the employment of new persons is extended until 31 December 201
  • tax reliefs for all who stars own business are introduced in the form of exemption from paying taxes in a starting and next year. This tax relief will apply from October 2018. All legal entities and entrepreneurs established till 31 December 2020 are eligible to those tax reliefs.

Amendments and Supplements of Law on Personal Income Tax

  • non-taxable amount of salaries is increased from 11.790,00 to 15.000,00 dinars per month
  • the simply accounting will be abolished for entrepreneurs in 2019. Entrepreneurs will be obliged to apply double-entry bookkeeping.

Amendments and Supplements of Corporate Income Tax Law

  • subject of withholding tax payable on income derived by non-resident legal entity from a resident entity in Serbia on the basis of fees from services is reduced. This withholding tax is payable at rate of 20%, or at rate of 25% if case non-resident legal entity is from jurisdictions with a preferential tax regime. Instead that all servicesprovided or used, or to be provided or used in the territory of Serbia, only the following services are subject to withholding tax:
    • market research services
    • accounting services
    • audit services
    • business and legal consulting services,

regardless of the place of delivery of services and/or place of use of services.

  • period for submission of withholding tax returns and paying taxes is extended to 3 days
  • depreciation of intangible assets for tax purposes is calculated using a proportional method, whereby the basis for determination of  depreciation rate is the lifetime of the specific asset or the period for which the contract on the right to use a particular asset

Amendments and Supplements to Value Added Tax Law

  • Place of goods and services is not subject to VAT in the event that the concessionaire makes the concession to the concessionaire or the concessionaire to the concessionaire within the framework of the implementation of the public-private partnership contract with the elements of the concession
  • A new special VAT regime for the investment gold is introduced
  • The obligation to submit a robust VAT record along with the tax return is postponed until 1 July 2018.

Amendments and Supplements to the Law on Republic Administrative Taxes

  • Compliance with other laws;
  • Compliance with the methodology prescribed in Art. 17 of the Law on the Budget System (e.g. the amount of the fee must be determined in absolute amount, thus cannot be determined as a percentage of the variable base, unless otherwise prescribed by law).