The amendments introduce a tax credit of up to 20% of eligible emission-reduction investments for qualifying electricity producers, subject to state aid restrictions, while establishing a transitional tax return filing window for affected taxpayers.
Serbia’s Parliament has adopted amendments to the laws governing greenhouse gas emissions tax and import taxes on carbon-intensive goods, primarily targeting the electrical energy production sector, as published in the Official Gazette of the Republic of Serbia No. 80/2026.
The key changes enacted under the amendments to the Law on Greenhouse Gas Emissions Tax align fiscal incentives for decarbonization with strict state aid governance and establish specific operational deadlines.
Tax credit qualification & calculation
The tax credit is available to taxpayers whose registered primary activity is electricity production and who derive at least 80% of their total revenue from power generation in the preceding tax period. The credit may amount to up to 20% of eligible investment costs incurred during the tax period on prescribed measures to reduce CO₂-equivalent emissions. However, the credit cannot exceed 80% of the taxpayer’s total GHG (greenhouse gases) tax liability, limiting the amount that can be offset against the tax due.
State aid rules & restrictions
The tax credit is classified as state aid and may be combined with other state or de minimis aid, provided the overall benefit remains within applicable state aid limits. Taxpayers required to repay previous aid or those classified as “in difficulty” are generally excluded from claiming the credit. Applicants must also submit a declaration with their tax return confirming whether they have already received state or de minimis aid for the relevant investment.
Record-keeping & implementation framework
- Documentation retention: Taxpayers must maintain dedicated financial records and evidence of investments used to claim the credit and preserve them until the expiration of the statute of limitations for tax assessment and collection.
- Regulatory oversight: The government will establish the eligible emission-reduction measures, related conditions, criteria, and reporting requirements, while the Ministry of Finance will set the detailed rules for the tax credit application process, forms, and record-keeping.
Special return filing window
A special transitional filing window applies to tax periods ending by 31 December 2026 and taxpayers ceasing business activities by 31 March 2027. For these cases, tax returns must be filed between 1 April and 31 May 2027.
The legislation comes into force on the eighth day following its publication in the Official Gazette.
Law on amendments to the law on tax on imports of carbon-intensive products
Serbia’s Parliament has also adopted amendments to the law on tax on imports of carbon-intensive products.
The amendment introduces a special transitional filing period for carbon-intensive import tax returns. Returns for tax periods ending by 31 December 2026, or for businesses ceasing operations by 31 March 2027, must be submitted between 1 April and 31 May 2027. The law takes effect on the eighth day after publication in the Official Gazette.
