Under the Foreign Exchange Operations Law, certain export and import transactions involving goods and services for which payment has not been received or made within a period exceeding one year from the date of export or import are treated as commercial credits and loans. The same applies to goods and services paid for or received in advance that have not been exported or imported within a period exceeding one year from the date of payment.
As a general rule, an invoice for the supply of goods or services is issued after the supply has been made or the service has been provided, or after an advance payment has been received. However, the VAT Law provides an exception for certain types of services, allowing an invoice to be issued before the service is actually provided.
As of January 1, 2027, the minimum wage in Serbia will increase. The minimum net hourly wage will rise to RSD 405, which is RSD 34 higher than the current rate of RSD 371 per hour.
A foreign entity that supplies goods or services in the territory of the Republic of Serbia is generally required to appoint a tax representative for VAT purposes.
An increasing number of employers recognize the importance of investing in employee well-being by promoting sports and recreational activities. Such initiatives are no longer viewed as unnecessary perks or business expenses unrelated to operations, but rather as long-term investments in employees' health, motivation, and job satisfaction. In addition to improving employees' physical and mental well-being, these programs strengthen teamwork, increase employee loyalty, and reduce staff turnover, ultimately contributing to a more productive and stable working environment.
A temporary and occasional work contract is one of the legally recognized forms of work performed outside an employment relationship. It may be concluded only for work that, by its nature, lasts no more than 120 working days within a single calendar year.
Corporate income taxpayers are required to pay their corporate income tax through monthly advance payments in accordance with the Corporate Income Tax Law.
After the annual financial statements have been approved, a company may adopt a decision on the distribution of its net profit or, if the financial year ended with a loss, determine how that loss will be covered.
According to the Corporate Income Tax Law, taxpayers performing transactions with related parties are required to submit transfer pricing documentation together with their tax balance. This documentation presents transactions with related parties and includes an analysis of whether the terms of such transactions comply with the arm’s length principle, i.e. the conditions that would apply between independent parties.
The Corporate Income Tax Law provides certain exceptions to this rule, recognizing that some expenses, although not directly connected with business activities, have broader social or economic significance. Therefore, such expenses may be recognized in the tax balance, but only within prescribed limits and subject to specific conditions.
