The Serbian ministry of finance has published the Rulebook on arm’s length interest rates that are applicable for 2019, which apply to interest rates on loans and credits between associated parties. The Rulebook was published in the Official Gazette of Republic of Serbia No. 13/2019 on 28 February 2019 and entered into force on 8 March 2019.

Interest rates in accordance with “arm’s-length” principle that apply on banks and financial leasing companies are-2,72% on short-term loans in RSD; 3,64% on loans in EUR and dinar loans indexed in EUR; 5,05% on loans in USD and dinar loans indexed in USD; 2,98% on loans in CHF and dinar loans indexed in CHF; 3,91% on loans in SEK and dinar loans indexed in SEK; 4,25 % on loans in NOK and dinar loans indexed in NOK; 1,92% on loans in GBP and dinar loans indexed in GBP and 1,41% on loans in RUB and dinar loans indexed in RUB.

Interest rates for other companies are- 4,98% on short-term loans in RSD; 5,69% on long-term loans in RSD; 2,71% on short-term loans in EUR and dinar loans indexed in EUR; 2,90% on long-term loans in EUR and dinar loans indexed in EUR; 7,61% on long-term loans in CHF and dinar loans indexed in CHF; 3,08% on short-term loans in USD and dinar loans indexed in USD; 4,12% on long-term loans in USD dinar loans indexed in USD.

The abovementioned interest rates only apply to the amount of interest that is in accordance with the arm’s length principle. For the amount of interest exceeding the amount considered to be in accordance with arm’s length principle, the statutory tax rate is applied i.e.20%.