Serbia: Amendments to corporate income tax law

Several corporate tax incentives are repealed, and the law introduces provisions aligned with EU tax directives.

The National Assembly of the Republic of Serbia adopted amendments to the corporate income tax law, published on August 31, 2026. The amendments became effective on September 8, 2026, and generally apply from January 1, 2027.

The investment and employment tax incentive (Article 50a) is repealed, with transitional relief for taxpayers meeting the conditions by December 31, 2027.
The tax incentive for newly established innovative companies (Article 50j) is repealed, with grandfathering for taxpayers meeting the conditions by December 31, 2026.
Tax exemptions related to concession arrangements are repealed.
The corporate income tax exemption for companies employing persons with disabilities will be subject to State aid rules.
The withholding tax obligation on purchases of secondary raw materials is repealed, effective January 1, 2027.
The law introduces provisions aligned with several EU tax directives, including the Merger Directive, Interest and Royalties Directive (IRD), Parent-Subsidiary Directive (PSD), and Anti-Tax Avoidance Directive (ATAD). These provisions will apply upon Serbia’s accession to the EU.

Read a September 2026 report prepared by the KPMG member firm in Serbia

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Serbia: Amendments to corporate income tax law

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