Corporate income tax (CIT) represents a type of direct tax which is imposed on the profit of companies, partnerships and other legal entities generating income from sale of goods and rendering services on the market.
In Serbia, 10% CIT is levied on profit determined under International Financial Reporting Standards (IFRS) and adjusted in accordance with corporate income tax rules. Some of the major adjustments prescribed by the CIT Law are related to partial or full non-deductibility of certain types of expenses, such as: non-business and non-documented expenses, marketing and propaganda expenses above 5% of total revenue, long-term provisions, write-off of receivables, impairment etc.
We appreciate the importance of managing both the global and local tax position of companies. This requires careful planning, structuring and compliance, taking into consideration local CIT and withholding tax (WHT) circumstances as well as the regional/international tax environment.