Understanding Serbian Tax System

Serbia's tax system is a mix of direct and indirect taxes. It includes personal income tax, corporate tax, and VAT. Tax rates are competitive to attract investment and stimulate economic growth.

Residents are taxed on worldwide income, while non-residents are taxed only on Serbian-source income. Progressive rates apply: 10% up to three times the average salary, and 15% thereafter.

Serbia's standard corporate tax rate is 15%, one of Europe's lowest. Special incentives exist for investors, including tax holidays and lower rates for companies in designated areas.

Value Added Tax (VAT) is 20%, with a reduced rate of 10% for certain goods. Exports are zero-rated. Essential goods like medicines and certain foodstuffs are exempt or subject to reduced rates.

Property tax in Serbia is paid annually by owners, based on the property's location and size. Interestingly, the tax rate is determined locally, not nationally, allowing for regional variations.

Serbia has double taxation treaties with many countries, aiming to prevent double taxation and tax evasion. Residents can often claim foreign tax credit relief for taxes paid abroad.

Serbia introduced a unique digital service tax, requiring foreign providers of electronic services to register and pay VAT. This includes streaming, gaming, and app services, extending tax reach.