Serbia: New green taxes effective January 1, 2026

Beginning January 1, 2026, two new “green taxes” will be implemented to reduce pollution and encourage investment in cleaner production methods.

Tax on greenhouse gas emissions

• The tax applies to legal entities or entrepreneurs required to possess permits for greenhouse gas emissions.
• Taxable emissions include carbon dioxide (CO₂), nitrous oxide (N₂O), and perfluorocarbons (PFCs).
• The tax base is calculated as the excess emissions above prescribed standards, expressed in tons of CO₂ or CO₂ equivalent.
• The tax rate is €4 per ton, converted to Serbian dinars at the National Bank of Serbia's middle exchange rate on the last day of the tax period.
• Tax returns must be filed by May 31 of the current year for the previous year, with payment due by the same deadline.
• Taxpayers may qualify for a tax credit of 20% of funds invested in measures to reduce emissions, subject to certain conditions.

Import tax on carbon-intensive goods

• The tax applies to entities importing iron and steel, cement, fertilizer, and aluminum.
• The tax base is determined by the actual or estimated CO₂ equivalent emissions related to the imported product, reduced by reference emissions values.
• The tax rate is €4 per ton, converted to Serbian dinars at the National Bank of Serbia's middle exchange rate on the last day of the tax period.
• Tax returns must be filed by May 31 of the current year for the previous year, with payment due by the same deadline.
• Taxpayers may qualify for a reduction in tax liability if payment for emissions has already been made in the country of origin, provided appropriate evidence is submitted.

Read a December 2025 report prepared by the KPMG member firm in Serbia