Serbia offers several taxation regimes for companies and entrepreneurs.
Applicable to most medium and large businesses.
The main ones include:
1. General Taxation Regime (Opšti režim oporezivanja)
- Corporate Income Tax (CIT): 15%
- VAT (PDV): Standard rate — 20%, reduced rate — 10% (food products, medicines, certain services)
2. Simplified Tax Regimes
Paušalno oporezivanje (Flat-rate taxation)
Available for individual entrepreneurs (preduzetnik), especially in service-based activities.
The tax amount is fixed, depending on:
- business activity type
- municipality
- approximate turnover
Preduzetnik sa vođenjem poslovnih knjiga (Entrepreneur keeping business books)
- Income tax rate: 10%
- Plus mandatory social contributions (pension, health insurance, etc.)
3. Special Tax Regimes
Flat-rate retail tax. Applicable to certain categories of small retail businesses.
Start-up / IP Box regime. Provides reduced tax rates on income derived from:
- intellectual property
- innovative activities
Investor tax incentives
Large investment projects may qualify for CIT exemptions for up to 10 years, provided job creation and capital investment requirements are met.