Tax & Legal Overview

Under the Labour Law in Serbia, an employment relationship shall terminate:

1. By the expiry of the period it was concluded for;
2. When an employee reaches 65 years of age and a minimum of 15 years of social insurance coverage unless otherwise agreed between the employer and the employee;
3. By agreement between the employee and the employer (multilateral agreement on the termination);
4. By the termination of employment contract by the employer or the employee;
5. At the request of a parent or guardian of an employee younger than 18 years of age;
6. In the event of the death of the employee;
7. In other cases specified by the law.

Under the Law on State and Other Holidays in the Republic of Serbia ("Official Gazette of the RS", No. 43/2001, 101/2007 and 92/2011), non-working days are public holidays and religious holidays, while additionally non-working days are prescribed in depending on what religion the employees belong to.

Accounting in Serbia is governed by Law on Accounting (”Off. Gazette of RS”, no. 62/2013 and 30/2018, hereinafter: Law). On the day of entry into force of this law, the Law on Accounting and Auditing (”Off. Gazette of RS”, no. 46/06, 111/09 and 99/11 - other law) is cease to be valid.

A foreign VAT payer in Serbia has the opportunity to submit a request for a VAT refund for goods and services procured in Serbia.

List of tax returns and forms for individulas in Serbia.

CIT is calculated (self-assessed by the taxpayer) by adjusting accounting profit from income statement prepared in accordance with IFRS for non-deductible costs and non-taxable revenues. Tax rate is 15%.

Before 24th July 2013, Accounting in Serbia was governed by Accounting and Auditing Law (”Off. Gazette of RS”, no. 46/2006, 111/2009 and 99/2011 - Dr. Law, below: Law).

For greenfield and brownfield projects in the manufacturing sector, services sector related to international trade and strategic projects in tourism, grants are awarded in the amount of 4,000 to 10,000 euros for each worker employed full time within three years from the date of conclusion of the grant.

The Labour Law of the Republic of Serbia regulates employment practice and the employer-employee relations, which can take two main forms: 1. Employment relation and 2. Work outside the Scope of Employment.

Standard VAT rate in Serbia is 20%. Certain goods and services (e.g. basic food, bottled water, newspapers, drugs, computers etc.) are subject to lower VAT rate (i.e. 10%).

Last amendments: Law on Amendments to the Law on Value Added Tax (”Fig. Gazette” no. 93/2012),