Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/9/2013

Serbia - Withholding tax on payments for “secondary raw materials” 

August 9: Guidance in a “rulebook” concerning withholding tax on amounts paid to Serbian resident and non-resident legal entities with respect to supplies of “secondary raw materials” was published in the official gazette in July 2013.

In general, a Serbian resident that purchases secondary raw materials and scrap materials from a resident or non-resident legal entity must withhold and remit withholding tax at a rate of 1% of the amount of the consideration.


The purchaser must also file form PPDSO, to report the withholding on the transaction with the Serbian tax authorities. This return is to be filed quarter (i.e., by the 15th day after the end of the calendar quarter).


A tax return is also required even if the transaction is not subject to taxation in Serbia (for instance, when provisions of an income tax treaty apply). Such return must indicate the reason why no withholding is required.


The rulebook’s effective date is 12 July 2013.


Read an August 2013 report [PDF 110 KB] prepared by the KPMG member firm in Serbia: The Rulebook on Content of the Tax Return on Calculated and Paid Withholding Tax on Income Realized by Resident and Non-Resident Legal Entities from the Supply of Secondary Raw Materials has been adopted




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