Serbia: New decree concerning state subsidies
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

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

Serbia: New decree concerning state subsidies

blagojevic.jpg

Ivana Blagojevic

The Serbian Government passed the decree on conditions and procedures for the attraction of direct investments, which was published in the Official Gazette of Serbia No. 28/2015 from March 20 2015. The decree entered into force on March 21 2015. The decree provides for subsidies for investments into the Serbian market and regulates who can apply for the subsidies, the volume of subsidies and the procedure of applying and granting subsidies.

Eligible applicants

Any foreign or domestic business entity can apply for the subsidies provided by the decree. However, only a domestic legal entity, which is directly or indirectly controlled by the applicant, can be the beneficiary of the subsidies.

The subsidies can be used for the financing of investment projects in production and for services that can be traded internationally. The trade sector is explicitly excluded from applying for the state subsidies.

The following entities cannot apply for subsidies:

  • Business entities with difficulties in their business operations;

  • Business entities which have overdue debts towards the Republic of Serbia;

  • Business entities which have significantly reduced their number of employees in the 12 months preceding the application for subsidies; and

  • Business entities whose shareholder is the Republic of Serbia, Serbian autonomous provinces or municipalities.

The volume of subsidies

The volume of subsidies is determined by the size of the beneficiary of the subsidies:

  • Large enterprises can be granted an amount of up to 50% of justified expenses of the investment project;

  • Medium enterprises are entitled to up to 60% of justified expenses of the investment project; and

  • Small enterprises are entitled to up to 70% of justified expenses of the investment project.

The subsidies can be granted to beneficiaries engaged in production, with minimum justified expenses of the investment project in the amount of €250,000 and to beneficiaries in the service sector, with minimum justified expenses of the investment project in the amount of €150,000.

The procedure for the distribution of the subsidies

The applicants apply for subsidies in a tender procedure. Namely, the Ministry of Trade announces the procedure for the collection of applications for grants. Elected beneficiaries conclude a subsidy agreement with the ministry before the subsidies are disbursed.

Ivana Blagojevic (ivana.blagojevic@eurofast.eu)

Eurofast Global, Belgrade Office

Tel: +381 11 3241 484

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

The full list of finalists has been revealed and the winners will be presented on June 20 at the Metropolitan Club in New York
The ‘big four’ firm has threatened to legally pursue those behind the letter, which has been circulating on social media
The guidelines have been established in the wake of multiple tax scandals and controversies that have rocked the accounting profession
KPMG Netherlands’ former head of assurance also received a permanent bar and $150,000 fine; in other news, asset management firm BlackRock lost a $13.5bn UK tax appeal
The new, fully integrated office will also offer M&A, dispute resolution, IP and corporate tax services
The new guidance concerns a recent 1% excise tax on the repurchases of corporate stock for both US and certain foreign companies
Interpath has hired a managing partner from rival accounting firm BDO to lead the new operation
Survey results of over 28,000 in-house lawyers reveal that American in-house counsel place a higher value on the reputation of external advisers than their peers elsewhere
In an exclusive interview with ITR, Andrew Leigh also endorsed new legislation designed to prevent multinationals using complex corporate structures to reduce taxes
Nick Crama and Parwesh Bissumbhar, senior director and manager respectively at Alvarez & Marsal, outline practical advice for real estate managers to comply with DAC6 regulations
Gift this article