- Jubilee awards, gifts provided to children for New Year and Christmas holidays, aid in case of illness and similar payments are considered as tax deductible expenses, in maximum non-taxable amounts prescribed in the Personal Income Tax Law.
- Provisions for individual receivables, that were not recognised in a period in which the provisions were made, will be recognised as tax deductible expenses in a period when the write-off of such receivables is made, provided that the general deductibility conditions were met, as follows:
- The receivables were originally recorded as the taxpayer’s revenue;
- The receivables were written-off as uncollectible; and
- The taxpayer has a proof of failed collection on the basis of legal proceedings, enforcement proceedings for the receivables collection was initiated or the receivables were duly reported in the liquidation or bankruptcy proceedings.
- All long-term accruals made under IAS or IFRS and IFRS for SME shall be recognised as tax deductible expenses in a period in which the accruals are utilized, up to the utilized amounts.
- As of 1 March 2016, the withholding tax will be payable on income earned by non-resident legal entities and paid by resident legal entities from services that are rendered or used in Serbia, at the rate of 20%, unless otherwise provided by an international agreement on the avoidance of double taxation.
taxnewsletter_januar2016_eng_4.pdf