Serbia Tax Changes for 2025: Key Updates for International Businesses

Several amendments to Serbian tax legislation take effect from 1 January 2025. These changes affect corporate income tax (CIT), value-added tax, and transfer pricing compliance requirements. The headline CIT rate remains 15% and the standard VAT rate remains 20% (10% reduced).

Corporate Income Tax: The amendments introduce modifications to the treatment of certain expenses and clarify deductibility rules for related-party transactions. Companies should review their current expense policies to ensure compliance with the new provisions. The five-year loss carry-forward rule is unchanged.

VAT Changes: New rules regarding the timing of VAT obligations for certain service types have been introduced. Additionally, the documentation requirements for zero-rated supplies have been enhanced. Entities should reconcile these requirements with their existing SEF e-invoicing configuration.

Transfer Pricing: The threshold for mandatory transfer pricing documentation has been adjusted, and new benchmarking requirements apply to certain categories of related-party transactions. Serbia’s treaty network, covering over 60 countries, continues to provide the baseline for cross-border structuring.