Serbia: Corporate Income Tax in 2026: Rate, Filing, and Key Rules for Foreign Companies

A question we hear often:

“Is Serbia’s 15% corporate tax rate really that simple?”

Yes — the 15% rate is real.

Serbia applies a flat 15% corporate income tax (CIT) on profits, with no surcharges and no minimum tax. Compared to countries like Germany (~29.9%) or France (25%), it is one of the lowest in Europe.

What matters in practice is everything around that rate: how profit is calculated, when tax is paid, and how foreign companies are taxed.

At a Glance

• CIT rate: 15% (flat)
• Tax base: Profit (not revenue)
• Filing deadline: 30 June
• Payments: Monthly advances
• Withholding tax: 20% (often reduced by treaty)
• Loss carryforward: 5 years

Who Pays 15%?

• Serbian companies: taxed on worldwide profits
• Foreign companies: taxed only on Serbian income (via permanent establishment or withholding tax)

There are no reduced rates — the same 15% applies to startups and large corporations alike.

How Taxable Profit Works

Tax is applied to adjusted accounting profit:

Accounting profit → adjustments → taxable profit

Typical adjustments include:

• Non-deductible expenses (e.g. fines, excess interest)
• Capital gains (taxable)
• Limited use of capital losses

In most cases: taxable profit is close to accounting profit.

Deadlines & Payments

• Monthly tax payments: due by the 15th
• Annual return: due 30 June

Important:

New companies must file an initial tax return within 15 days of registration — this is often missed.

Withholding Tax (Key for Foreign Groups)

Serbia applies a 20% withholding tax on:

• dividends
• interest
• royalties
• certain services

However, tax treaties (60+ countries) usually reduce this to 5–10%.

Critical point:

A tax residence certificate must be in place before payment — not after.

Foreign Companies: Hidden Risk

You don’t need a Serbian company to create a tax liability.

A permanent establishment (PE) can arise if:

• you have people working in Serbia
• contracts are concluded from Serbia
• activities are ongoing or long-term

This is increasingly relevant with remote teams.

Tax Incentives

Serbia offers incentives that can reduce the effective tax rate:

• 10-year tax exemption (large investments)
• 200% R&D deduction
• Payroll tax relief for relocating employees

These need to be structured from the outset.

Bottom Line

• The 15% rate is genuinely low and stable
• The system is simple but compliance-driven
• The main risks are:
  • missed deadlines
  • withholding tax errors
  • unintended permanent establishment

Serbia remains a strong option for international businesses, particularly when structured correctly from day one.

By Zunic Law, Serbia, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact serbia@transatlanticlaw.com

Disclaimer: Transatlantic Law International Limited is a UK registered limited liability company providing international business and legal solutions through its own resources and the expertise of over 105 affiliated independent law firms in over 95 countries worldwide. This article is for background information only and provided in the context of the applicable law when published and does not constitute legal advice and cannot be relied on as such for any matter. Legal advice may be provided subject to the retention of Transatlantic Law International Limited’s services and its governing terms and conditions of service. Transatlantic Law International Limited, based at 84 Brook Street, London W1K 5EH, United Kingdom, is registered with Companies House, Reg Nr. 361484, with its registered address at 83 Cambridge Street, London SW1V 4PS, United Kingdom.