Starting a business and expenses :-: Tax rates


Standard rate 20%
Lower rate 10%


Corporate Profit Tax

Uniform rate 15%


Witholding Tax

Salaries 10%
Other income 20%


Annual Income Tax

10/15% (for annual income below or above 6 average annual salaries)


Social Insurance Contributions

For employee:
Pension and disability insurance 13%
Health insurance 6.5%
Unemployment insurance 0.75%


For employer:
Pension and disability insurance 11%
Health insurance 6.5%
Unemployment insurance 0.75%

Double Taxation Treaties

If a resident taxpayer earns profit by conducting business in another state and tax was paid on that profit in another state, it shall be granted a tax credit on its enterprise profit tax account determined in conformity with the provisions of this Corporate Profit Tax Law, amounting to the tax paid in another state. The referred tax credit may not be greater than the amount that would be calculated by applying the provisions of the aforementioned Law on the profit accrued abroad.

The same right is enjoyed by a taxpayer who earns revenue and pays personal income tax in another country, provided there is a Double Taxation Treaty with that country. At the moment the following countries have signed the Double Taxation Treaty with Serbia:

Albania, Austria, Azerbaijan, Belgium, Belarus, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cyprus, Czech Rep., Korea, Denmark, Egypt, Estonia, Finland, France, Ghana, Germany, Greece, Hungary, Italy, Iran, India, Ireland, Kuwait, Latvia, Libya, Lithuania, Macedonia, Malaysia, Malta, Moldova, Netherlands, Norway, Pakistan, Poland, Qatar, Romania, Russia, Slovakia, Slovenia, Sri Lanka, Spain, Sweden, Switzerland, Turkey, Ukraine, U.K, Zimbabwe.