An interesting trend can be noticed recently as the Serbian Tax Administration and Tax Police have raised their level of activity in conducting routine tax inspections in companies across the country.

The agreement is based on a standard contract model of the OECD Model Convention and it applies to corporate profit tax, income tax and property tax.

One of the incentives introduced is the abolishment of the 10% limit on the deductibility of advertising and promotional expenses recognized as expenses in the tax balance sheet.

The new Law on Bankruptcy (Zakon o stečaju, Official Gazette of the Republic of Serbia, n.104/09) was enacted on 11 December 2009.

Facing a significant budget deficit, the Serbian Government plans to change the tax laws for the third time in the last 12 months

Other amendments include changes regarding the depreciation rules.

The Ministry of Finance of Serbia has adopted the Rulebook on arm's length interest rates for 2018 ("Official Gazette of the Republic of Serbia", No. 18/18).

The Ministry of Finance passed new rulebooks on the form and content of tax balance and tax return for corporate taxpayers and sole entrepreneurs.

Residents are subject to personal income tax on their worldwide income. Non-residents are taxed on their Serbian-source income only. Income tax is assessed in the year, in which the income is earned on a current year basis.

The tax authorities in the region have been intensely active over the end of 2013 and the beginning of 2014 and have implemented several legislative changes.