Serbia

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

The rate of taxation for companies is 10%. Non-residents are taxed only on the part of their revenue generated in Serbia.

   
Tax rate on long-term capital gains Long-term capital gains are included in taxable revenue and are therefore taxed at the same rate as Corporate Tax.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies Dividend payments between Serbian companies are not taxed. When dividends are paid to non-residents, they are taxed at 20%, unless otherwise specified in the Double Taxation Treaty.
   
Tax rate on branches Branches and subsidiaries of foreign companies are liable for Corporate Tax at the rate of 10%, but only on their revenue generated in Serbia.




Income tax

Fiscal year The financial year begins on January 1st and ends on December 31st of the same year.
   
Income tax rate The annual income of Serbian and non-Serbian citizens is subject to a 10% tax. Persons are taxable when their annual income is four times the average annual salary in Serbia for Serbian citizens, and if the annual income is 10 times the average annual salary in Serbia for non-Serbians.
Taxable income is reduced by the equivalent of 40% of an average annual salary and by the equivalent of 15% of an average annual salary for each dependent member of the family.
Reductions of taxable income cannot be more than 50% of the taxable income.
   



VAT rates

Standard rates 18%
Some products are also subject to excise duties : petroleum products, tobacco, alcohol, alcoholic and non-alcoholic drinks, table salt, coffee, luxury goods.
   
Reduced rates - a reduced rate of 8% on basic foodstuffs, newspapers, community services, etc.
- an exceptional rate of 0% on goods for export, for insurance, re-insurance or letting of an appartment.



Other important taxes


Name of tax
Rate
Property tax applies when an individual holds the rights of property, usufruct, residence, use, letting.  
When the taxpayer holds a professional account, the rate of tax is 0.4%. Otherwise it is progressive and depends on the tax base.  


 

Accounting

Introduction
The main source of Serbian accounting law is the Accounting and Auditing Act (Sluzbeni Glasnik RS, no. 46/06) of May 25th 2006 (available in Serbian). Serbian accounting rules have adopted the norms of the IAS, the IFRS, the ISA and the Code of Ethics for professional accountants.


General accounting principles
All accounting operations must be recorded in the journal (dnevnik) in chronological order or according to the order of receipt of the accounting documents. In the ledger (glavna knjiga) all the accounts appear (changes concerning ownership, liabilities, capital, revenue and expenditure). This document is a basis for creating financial reports. The annexes (pomocne knjige) are analytical documents for non-material investments : real estate, equipment and machines, long term financial investments, stocks etc.
Companies must draw up financial reports for the current year : a balance sheet of current financial standing (bilans stanja), a statement of income (bilans uspeha), report on liquid assets (isvestaj o tokovima gotovine), report on changes concerning capital (izvestaj o promenama na kapitalu), explanatory notes (napomene uz finansijske izvestaje) and annexes (statisticki aneks).

Obligations and publications
The obligations concerning publication and audit depend on the size of the company.
All companies must file their financial reports with the National Bank of Serbia (NBS), by the end of February for small companies and by the end of April for medium-sized and large companies. The Bank handles these reports and publishes the financial standing of the companies. It keeps the financial reports for 20 years.

Certification and auditing
Auditing is mandatory for large and medium-sized companies, it is optional for small companies. The fiscal administration can audit small companies. The audit must be carried out according to international standards. Audits must be carried out by members of the Chamber of Certified Auditors (Komora ovlascenih revizora).

Professionals and representative organizations
Professionals and representative organizations :
there is a Serbian Association of Accountants and Auditors: www.srrs.org.yu



Useful links
Serbian Fiscal Administration
www.poreskauprava.sr.gov.yu

Serbian Ministry of Finance
www.mfin.sr.gov.yu

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