Serbia is advancing the ratification of its first income and capital tax treaty with Algeria, paving the way for reduced withholding tax rates, double taxation relief, and a stronger framework for cross-border tax cooperation.
The Serbian National Assembly is reviewing legislation to ratify the pending income and capital tax treaty with Algeria. Signed on 31 March 2026, the agreement will establish the first tax treaty between the two countries once it enters into force.
The agreement applies to Algeria’s global income tax, corporate income tax, professional activity tax, property tax, and hydrocarbon-related taxes. On Serbia’s side, it reaches corporate income tax, personal income tax, and property tax. Both countries will use the credit method to prevent double taxation.
Dividend withholding rates sit at 5% for companies holding at least 25% of the paying company, dropping to 10% otherwise. Interest faces 10% withholding, though government entities and central banks receive exemptions. Royalties are taxed at 10%.
The treaty will enter into force upon the exchange of the instruments of ratification and will take effect from 1 January of the calendar year following its entry into force.
Earlier, the Serbian Prime Minister and Algerian Prime Minister signed an income and capital tax treaty on 31 March 2026.
