Serbia’s Ministry of Finance has issued the Rulebook on arm’s length interest rates for 2025, which was published in the Official Gazette of Serbia No. 17/2025 on 28 February 2025.
The rulebook establishes specific interest rates for both long-term and short-term borrowings, applicable to non-financial entities, banks, and finance leasing companies. Banks and finance leasing companies are subject to a unified interest rate. Article 61 of the corporate income tax law allows taxpayers to determine arm’s length interest by using prescribed interest rates or applying OECD-based methods for assessment of arm’s length interest as outlined in the law.
The rulebook will come into effect on 8 March 2025.
Earlier, the Ministry of Finance issued the rulebook on arm’s length interest rates for 2024. It was published in the official gazette on 31 May 2024 and took effect on 8 June 2024.