Serbia: Serbia-San Marino DTA enters into force

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Serbia: Serbia-San Marino DTA enters into force

Sponsored by

Eurofast Serbia
AdobeStock_68581369_Serbia

Serbia and San Marino signed a double taxation agreement (DTA) on April 16 2018, thus effectively resulting in the removal of San Marino from the Serbian list of countries with a preferential tax regime. The Law on Confirmation of the DTA was adopted by the Serbian Assembly on September 25 2018 and San Marino is expected to start the application of the DTA as of January 2019.

The DTA introduces the following principles and rates:

  • A maximum 5% withholding tax rate for dividends paid by a company to its shareholder company directly owning at least 25% of the capital of the company paying the dividends;

  • A maximum 10% withholding tax rate for the payment of dividends to shareholders owning less than 25% of company's capital;

  • Interest and royalties are generally taxable in the country of residence of the receiving company; but if taxed in the country of residence of the paying company the tax may not exceed 10%.

  • In cases when more than 50% of the value of the company (for the 365 days preceding a sale) is derived from real estate, the capital gains from the sale of shares over such a company may be taxable in the country of residence of the company being sold; and

  • In all other cases, the capital gains from sale of shares will be taxable in the seller's country of residence.

As a result of San Marino's removal from the preferential tax regime jurisdiction list, transactions between legal entities from Serbia and San Marino will no longer be subject to the 25% withholding tax rate.

We advise companies doing business with San Marino to carefully review existing practices and evaluate whether the new treaty will have an impact on their transactions. Our team is ready to answer your questions on how the agreement will simplify administrative procedures and tax burdens related to withholding tax and to provide custom guidance on ensuring compliance with the treaty.

more across site & shared bottom lb ros

More from across our site

Thanks to operational slickness and sheer force of will, A&M Tax will continue hoovering up talent across the globe
Setu Kamal became the first practising barrister to be added to the UK’s tax avoidance promoter list; in other news, UHY expanded its network in Canada
US President Donald Trump’s tariffs may get thrown out by courts in the future and taxpayers should already be planning for that possibility, BDO’s Dustin Stamper tells ITR
Awards
ITR is delighted to reveal the first shortlisted nominees for the Middle East Tax Awards
The firm has appointed Deloitte’s former tax leader for Thailand to lead the new operation, which builds on considerable Asian investment in recent months
The Donald Trump administration could use legislation from 1930 if the Supreme Court blocks its tariffs; in other news, China has updated its VAT refund procedures
Braun gives ITR an exclusive insight into WTS Digital’s UK launch of its AI product, which can free up more than 1,500 hours per month by reducing routine tasks
Long tells ITR about her varied role, why curiosity is a key characteristic for the tax professional, and what she’d be doing if she wasn’t working in tax
The choice facing governments is not whether to adopt AI in taxation, but how to do so in a way that upholds the principles of tax fairness, writes Neil Kelley
As ITR’s client data reveals discontent with German tax advisers’ cost management, Grant Thornton’s local TP head insists it’s a two-way street
Gift this article