|
Extremely competitive environment provides second lowest corporate income tax in Europe, together with other favorable taxes and costs.
| Value Added Tax |
Standard rate - 18%, Lower rate - 8% |
| Corporate Profit Tax |
Uniform rate - 10% |
| Withholding Tax |
20% (for dividends, shares in profits, royalties, interest income, capital gains, lease payments for real estate and other assets) |
| Personal Income Tax |
Salaries - 12%, Other income - 20% |
| Annual Income tax |
10/15% (for annual income below or above 8 average annual salaries) |
| Social Insurance Contributions |
Pension and disability insurance - 11%, Health insurance - 6.15%, Unemployment insurance - 0.75% |
|
|
|
VALUE ADDED TAX
The VAT rates are as follows:
• The standard VAT rate - 18% (for most taxable supplies);
• The lower VAT rate - 8% (for basic food stuffs, daily newspapers, utilities etc.).
CORPORATE INCOME TAX
Corporate profit tax is paid at the uniform rate of 10%. Non-residents are taxed only based on their income generated in Serbia.
WITHHOLDING TAX
Withholding tax is calculated and paid at the rate of 20% on various forms of income (dividends, shares in profits, royalties, interest income, capital gains, lease payments for real estate, and other assets) by a non-resident.
PERSONAL INCOME TAX
The personal income tax rate is 12% for salaries, while other personal income is predominantly taxed at the rate of 20%.
ANNUAL INCOME TAX
For non-Serbian citizens, the annual income is taxed if exceeding the amount of 3 times the average annual salary in Serbia. The tax rate is 10% for the annual income below the amount of 6 times the average annual salary, and 15% for the annual income above the amount of 6 times the average annual salary.
SOCIAL INSURANCE CONTRIBUTIONS
The rates for mandatory social security contributions are:
• 11% for pension and disability insurance,
• 6.15% for health insurance, and
• 0.75% for unemployment insurance.
LABOR COSTS
Average salaries in Serbia are low enough to ensure cost-effective operations. While slightly higher than in neighboring countries such as Romania, total costs for employers stand at merely 50% of the level in EU countries from Eastern Europe. Social insurance charges and Salary Tax sum up to roughly 65% of the net salary but the tax burden for employers can be reduced through a variety of financial and tax incentives available.
|
|
UTILITY FEES
ELECTRICITY
The 100% state-owned Electric Power Industry of Serbia is the sole electricity supplier at the moment. The electricity price varies according to the consumption category and daily tariff rate, ranging between €0.0111-0.033 in the high tariff category. |
|
GAS
As a natural gas supplier in Serbia, the state-owned company Srbijagas pursues its pricing policy in accordance with world prices of oil derivatives and the US dollar exchange rate fluctuations. The price of natural gas is set every 15 days, currently standing at €0.3328/m3.
|
|
WATER
The waterworks in Serbia are operated at the municipality level with water prices set by local authorities.
|
| Major Utility Fees (July 2009) |
Item |
Amount |
Hogh Voltage Electricity for industrial Consumers (€/kWh) |
0,0111 - 0,0333 |
Middle Voltage Electricity for industrial Consumers (€/kWh) |
0,0122 - 0,0366 |
Low Voltage Electricity for industrial Consumers (€/kWh) |
0,0161 - 0,0483 |
Gas for industrial Consumers (€/m³) |
0,3328 |
Water for industrial Consumers (€/m³)¹ |
1,28 |
¹ Based on a sample of 22 municipalities |
|
Source Electric Power Industry of Serbia,Srbijagas,Statistical Office of the Republic of Serbia |
|
|
