International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

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

Serbia: Serbian transfer pricing regulations


Anastasia Sagianni

The Serbian transfer pricing legislation follows the OECD guidelines and requires that transactions between related parties should be carried out in an arm's length basis. The Serbian tax authorities through the TP Rulebook that was published on July 12 2013 in Official Gazette of RS no. 61/2013, determine the general principles of TP in Serbia. Taxpayers should have the appropriate TP documentation in place to defend their policies in a potential tax investigation.

Who is affected?

Companies and group of companies with related party transactions are affected by transfer pricing rules.

Related party definition

An entity is considered a related party if there is a possibility of exercising control over or exerting considerable influence on business decisions made. The direct or indirect possession of 25% or more of the shares in capital shall mean that control over the taxpayer is possible.

In the case of direct or indirect possession of at least 25% of the voting rights is considered as having an influence on business decisions.

Type of transactions

Subject to transfer pricing are: product sales; product acquisition; lendings; borrowings; royalties; management fee payment; provision of management services; cost-sharing within the group; research and development activities; provision of other services; and use of other services.

Transfer pricing methods

The taxpayer should choose one or the combination of the methods described in the OECD guidelines. The taxpayers should also describe the decisive reasons for the determination regarding the method used for the reconciliation of the transfer prices with the arm's-length principle (ALP) for the transactions carried out with the associate enterprises.

Transfer pricing audit and penalties

When a taxpayer fails to submit or submit improper transfer pricing documentation, penalties can arise. The Serbian tax authorities have recently shown increased interest in transfer pricing documentation and failure to comply with legal requirements carries penalty exposure from RSD100,000 ($1,100) to RSD2 million.

Additionally, the tax authority may request from the taxpayer to provide additional documentation to support its reconciliation of prices with ALP, in case they assess that the documentation provided is not sufficient. In this case, the time and extra money spent should be taken into consideration.

Reporting Deadlines

Transfer pricing documentation is to be submitted to the tax authorities in Serbia, together with the annual tax return within 180 days from the last date of a tax period.

Statute of limitations on TP adjustments

There is no special statute of limitations on assessment of transfer pricing adjustments. Statute of limitation period for a tax audit is five years, starting from the first day of a year following a year in which tax liability became due. Practically this means that inappropriate documentation for transactions conducted in 2013, may lead to penalties in 2019. The absolute period of limitation is 10 years, applicable under certain circumstances.

Anastasia Sagianni (

Eurofast Global, Belgrade Office

Tel: +381 11 3241 484


more across site & bottom lb ros

More from across our site

COVID-19 and an overworked HMRC may have created the ‘perfect storm’ for reduced prosecutions, according to tax professionals.
Participants in the consultation on the UN secretary-general’s report into international tax cooperation are divided – some believe UN-led structures are the way forward, while others want to improve existing ones. Ralph Cunningham reports.
The German government unveils plans to implement pillar two, while EY is reportedly still divided over ‘Project Everest’.
With the M&A market booming, ITR has partnered with correspondents from firms around the globe to provide a guide to the deal structures being employed and tax authorities' responses.
Xing Hu, partner at Hui Ye Law Firm in Shanghai, looks at the implications of the US Uyghur Forced Labor Protection Act for TP comparability analysis of China.
Karl Berlin talks to Josh White about meeting the Fair Tax standard, the changing burden of country-by-country reporting, and how windfall taxes may hit renewable energy.
Sandy Markwick, head of the Tax Director Network (TDN) at Winmark, looks at the challenges of global mobility for tax management.
Taxpayers should look beyond the headline criteria of the simplification regime to ensure that their arrangements meet the arm’s-length standard, say Alejandro Ces and Mark Seddon of the EY New Zealand transfer pricing team.
In a recent webinar hosted by law firms Greenberg Traurig and Clayton Utz, officials at the IRS and ATO outlined their visions for 2023.
The Asia-Pacific awards research cycle has now begun – don’t miss on this opportunity be recognised in 2023