Want to setup a company in Serbia? This will tell you about taxation for a LLC (DOO) which is the most common company structure in Serbia.
Serbian resident entities are liable to tax on their worldwide income. The established tax rate for income earned abroad, from our research, and these things do change, is 15%. Serbia doesn't have major incentives to remit income earned abroad. Taxes are reasonable in Serbia because the income corporate tax rate is 15%. This ranks Serbia as 47th overall with regards to corporate tax rate worldwide.
The valued added tax rate is 20.00%, that ranks Serbia as 134th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute 17.90% to the equivalent of a social security fund and an employee will contribute 19.90%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 126 hours. Contributing to this is the number of yearly labor tax payments, which is 12 in Serbia.
Thin capitalization rules are in play. Thin capitalisation refers to any sort of laws on a business on its debt-to-asset ratios. Dividends distributed between resident companies are not taxable. Dividends received from a foreign company are subject to corporate income tax, but if the recipient holds at least 10% of the shares of the distributing company, it may be eligible for a credit of tax foreign paid. A dividend is a distribution of a company's earnings, voted by the board, to a particular class of shareholders.Dividends can be either stock, cash, or property. Capital Gains are treated as business income and subject to Corporate Income Tax standard rate. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.
The interest withholding tax rate is estimated at 20%. Which means that the relevant tax authorities expects companies to withhold 20% of interests remitted abroad. The dividends withholding tax rate is 20%. Which means that the relevant tax authorities expects LLC (DOO)'s to pay tax on 20% of dividends remitted abroad. Royalties are subject to a withholding tax rate of 20%. This means that a LLC may have to withhold 20% on its payments on royalties to non-residents. Payments to residents of tax havens may be subject to a withholding tax rate of 25%. Rates may be reduced under a tax treaty.
There is no known tax on wealth in Serbia. There are inheritance, transfer and real property taxes in Serbia. There are no commonly used research and development tax incentives in RS.
The above is not tax or legal advice for your particular circumstances. We can point you to an expert in Serbia who will advise you. Click the free consultation button above.
It takes approximately 48 hours to file and prepare documents for a Serbia Civil Law.
The corporate tax is approximately 15% which is 48 in the world.
Owners of a company in Serbia are not allowed to carry back a loss and may be allowed to carry forward a loss for 5 years.
The vat rate in Serbia is 20% which ranks 134 in the world.
When looking for a jurisdiction in which to incorporate, the first thing to look at is the legal code. The body of law in Serbia is civil law law. You will want to get some local advice as to how to best structure a company in Serbia. One is permitted to electronically sign documents.
The abbreviation RS is for Serbia and the most common company type type in Serbia is a LLC (DOO).
The average time to incorporate is 3 weeks to setup a LLC (DOO) in RS. The minimal capitalization is 0, This means you don't have any minimum share capital. The types of consideration you can use to fund your company is often RSD and any legal currency.
Yes, one is allowed to re-domicile a LLC (DOO) from RS. You are usually allowed to change the jurisdiction of the company, pending certain procedures.
There must be at least 1 shareholder. This makes it possible for you to own a LLC (DOO) in RS by yourself. Corporate Shareholders are encouraged, which means you can have a corporate shareholder. Foreign ownership is encouraged, up to % of the total shareholding.
A company is only required to have one director. Moreover, corporate directors are permitted. Directors should not expect to be private, as they are disclosed. There is a body of law which requires companies to hold an annual meetings of shareholders.
A registered agent is normally required, which means the company will have to pay a fee on a yearly basis, for a legal services company which can receive a service of process on behalf of the registered legal entity. A related requirement, a corporate secretary is required by law.
There is an obligation to file yearly tax returns. Furthermore, there is oftentimes a requirement to have these accounts audited.
Thin capitalization rules are not in effect.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Serbia, Serbian Business Registers Agency. Shareholders are disclosed in the Serbian Business Registers Agency.
Typically companies take 3 weeks to setup and there are 1 director(s) required and 1 shareholder(s) required at the time of incorporation.
Overall we think Serbia is a ok option and have given it a score of 40 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Serbia. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Serbia, which is required by law.
