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Gordana Vucenovic |
While the end of 2012 in Serbia will be remembered for significant changes in Serbian legislation, the beginning of 2013 is reserved for signing and ratifying already signed double tax treaties. In January and February 2013, four new double tax treaties with Canada, Palestine, Tunisia and Georgia, that were signed in April 2012, have been ratified, and it is expected that they will become applicable as of 2014.
The above treaties correspond to the OECD's Model Tax Convention on Income and on Capital, and represent an important step in developing the bilateral cooperation between Serbia and the above countries.
Based on all four DTTs, the withholding tax for the interests and royalties will be 10%.
The withholding rates on dividends in the case of Georgia and Canada will vary from 5% to 10% subject to conditions, while in case of Tunisia and Palestine they will be fixed to 10%.
In January 2013 the new DTT referring to income and capital was signed with the United Arab Emirates and is awaiting ratification.
Gordana Vucenovic (gordana.vucenovic@eurofast.eu)
Eurofast Global, Belgrade Office/Serbia
Tel: +381 11 3241 484
Website: www.eurofast.eu