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Tax Minimization in Serbia

Tax Minimization in Serbia

Tax minimization in Serbia can be a good choice for your company in this country if you want to cut the amount of taxes, in a legal way. For a better understanding of the methods that can be implemented, you can ask for assistance from our team of company formation representatives in Serbia. Our local agents can also help foreigners set up a company in Serbia by guiding them with the authorities in charge.

Tax minimization methods available in Serbia

The profits of a company in Serbia can be maximized in certain ways a consultant can explain. Instead of overpaying taxes in Serbia, it is suggested to create a tax plan and set up the main targets for the firm you own. Tax minimization can be a good option for companies in Serbia. Our consultants can verify all aspects of the taxes imposed for companies registered in Serbia, like the VAT, the income, and corporate tax, or the social contributions.

An important tax minimization option for your company in Serbia can be subject to deductions on gifts, bonuses, subscriptions, or office supplies. Our company formation agents in Serbia are at your discretion with support for company registration in Serbia and can also provide you with complete information about the tax minimization methods you can adopt in the firm.

Are tax advice and planning available for companies in Serbia?

Tax advice and planning can be presented by a business consultant for your firm in Serbia. He or she can suggest to the owners varied investment methods to increase the profits of the company. Also, tax deductions can be obtained through a simple and effective method, and that is the foundation in Serbia. Such entities are not subject to taxation in Serbia. Even though the tax structure in Serbia attracts foreign investors around the world, it is always a good idea to consider and implement tax minimization methods in the company, for future profits and benefits.

Still talking about taxes, you should discover the services offered by our accountants in Serbia. Payroll, bookkeeping, tax registration, and HR solutions are a few of the services recommended for small, medium, and large companies in Serbia.

Retirement plans in Serbia, as a tax minimization option

Another good method of tax optimization is opening a retirement account in Serbia. This option is used worldwide to cut the amount of taxes in the firms. Thus, the amount of money collected in this account cannot be taxed in full or even be exempt from taxes, under certain conditions. But to fully understand this tax optimization method, we advise you to contact one of our local consultants.

Deducting business travel expenses in Serbia

In general, business travel expenses are deducted and this is also valid for company owners in Serbia. Thus, it is necessary to keep all the travel documents and the receipts you received, so that later they are directed to the accounting department.
Thus, if you had a business trip and you obviously had expenses, you should know that they can be deducted. But more explanations in this regard can be provided by one of our tax specialists in Serbia.

Charity as a tax minimization option in Serbia

Opening a charity can be another alternative for reducing the amount of taxes in the firm. Donations are not taxed in Serbia, which is a benefit for local and foreign entrepreneurs. Therefore, if you are interested in this option of tax minimization, you can contact our company for more information in this regard. You can contact us if you want to open a company in Serbia, and need guidance for the formalities implicated in the process.

Dealing with investment losses

A good tax minimization method is the sale of investments that are at a loss or that do not bring profit. Thus, you can reduce your tax liability by a good percentage. It is good to know the profitability of investments and to get an idea of how well they perform or if they should be sold. Such a tax minimization method can be easily implemented in the company you own. We advise you to contact our team and learn more about tax minimization in Serbia.

Minimizing the annual tax bill

Annual tax liability can be reduced with the help of a well-established financial plan. Many businesses in Serbia can cut the taxes taking into account the related deductions. Here are also included those related to travel expenses. Tax credits can also help reduce annual tax liability. Here are other interesting methods:

  • investments in raw materials, and company equipment,
  • hiring a tax consultant to offer comprehensive plans for cutting the taxes in the firm.

Regardless of the chosen strategy, we advise you to talk to one of our tax agents in Serbia beforehand and learn more about this topic. We are here to help you with company formation in Serbia, but also with everything related to tax registration and advice.

What does an early-stage investment company mean?

There are various tax minimization strategies in Serbia. We can also talk about early-stage investment companies that are addressed to young entrepreneurs. Under certain conditions, concessions can be made regarding taxes. For example, capital gains tax can be exempted from payment. The early-stage investment company method is relatively new, introduced in 2016.

VAT registration in Serbia

Foreign companies that want to carry out their activities in Serbia must register for the payment of taxes. VAT is one of the most important, and registration can be done with the help of a tax representative to benefit from a simple, fast, and uncomplicated process. VAT registration is done after presenting the company’s documents, such as the Certificate of Incorporation and some standard forms to fill out. The same rules and formalities apply to local companies that want to register for tax payments in Serbia. The Serbian Tax Authority is the institution that deals with registration requests for the payment of taxes and the one that issues tax IDs. We recommend you collaborate with our local agents to be able to ensure an uncomplicated process.

Information on taxation in Serbia

Serbia is among the few European countries with a favorable tax system. Many times, this criterion is considered the basis for opening a company in Serbia. Let’s review some interesting aspects of taxation in Serbia:

  • Depending on the income registered in Serbia, the income tax in Serbia ranges from 10% to 20% rate.
  • The VAT rate in Serbia is 20%.
  • The corporate income tax rate in Serbia is 15%.
  • In Serbia, there are no local taxes imposed on income.
  • Capital gains tax rate in Serbia is 15%.
  • The real estate income tax rate is 20%.
  • Taxpayers in Serbia can benefit from personal deductions of around 40% of the average annual wage.
  • Serbia has signed numerous double taxation agreements in order to avoid double taxation of the same income.

We suggest you discuss more about taxation in Serbia with one of our specialists. It is very important to know the legislation and to consider the taxation system before starting a company in Serbia.

Working with our local agents in Serbia

When you are interested in company incorporation in Serbia as a foreign investor, you must consider the support offered by a team with experience in this field. Our specialists take care of all the formalities in this regard and can also collaborate with the relevant authorities for the registration of the desired business structure. Thus, you will benefit from the guidance you need, without facing possible rejections in terms of documents and/or formalities. Moreover, starting a company in Serbia with our support can save time and allow you to concentrate more on the business investments you want to make in this country.

Why invest in Serbia?

With an excellent geostrategic position in Europe, a great workforce, and infrastructure, Serbia is among the excellent business destinations for foreign investors. Serbia is in the process of entering the European Union, which will be an even greater advantage for entrepreneurs who want to enter a stable and valued market. Belgrade, the country’s capital, was considered business-friendly, scoring number one in the Cities Perception Index for two years in a row. If you are interested in company incorporation in Serbia, please feel free to discuss more with our local representatives.

Economy facts about Serbia

The following data about the economy of Serbia may be useful when you decide to open a business in this country:

  • An economic growth of approximately 2.5% was recorded in Serbia in 2023.
  • Q4 of 2023 registered an increase in the private consumption sector of approximately 2.5%.
  • The same Q4 of 2023 was significant for fixed investments in Serbia, registering an increase of almost 5.2%.

Besides assistance for tax minimization methods, you can also ask for the services of our accountants in Serbia. We invite you to contact our Serbian team of company incorporation specialists.