Avoidance of double taxation

International double taxation, or its avoidance, is increasingly important globally and in the Republic of Serbia, due to intensification of capital investment in Serbia, establishment of foreign companies, participation of foreign firms in the privatization process, hiring of foreign individuals, Serbia’s inclusion in international financial transactions etc.

Republic of Serbia, like all other countries, is interested to eliminate the problem of international double taxation by signing of treaties, primarily with countries which are its most important economic partners, but also with other states, and consequently to facilitate participation in the international division of labor and to intensify its economic and financial relations on the global plan.

The treaties signed (which define tax treatment, i.e. the way to tax residents of the other contracting country in the Republic of Serbia, and taxation of Serbian residents in other contracting countries) are ratified by the Serbian Parliament. They become integral part of the national tax laws and have supremacy over Serbian legislation.

Implementation of treaties provides a legal precondition for more efficient operation and competitiveness of Serbian companies in other contracting countries, and vice versa, which contributes considerably to promotion of bilateral economic and financial cooperation.

Treaties are a prerequisite for entrance of foreign investors in the Serbian economy and create conditions for their participation in the privatization process, but also for using adequate financial instruments to foster bilateral economic cooperation. 

STATES WITH WHICH THE REPUBLIC OF SERBIA SIGNED TREATIES