On 7 December 2018, the parliament of Serbia adopted the Law on Amendments to the Corporate Income Tax Law (the Law) which was published in the Official Gazette of RS number 95/2018 dated 8 December 2018. The Law came into force on 9 December 2018.
The provisions generally apply for tax periods beginning on or after 1 January 2019, with certain exceptions that are applicable to 2018 which are specifically marked. The law introduces new rules for calculating the tax depreciation of fixed assets acquired from the first day of a tax period from 2019. The tax depreciation of fixed assets is calculated separately for each asset according to the proportional method and a base consisting of the cost of the asset, applying the prescribed rates.
The Law specifies an 80% exemption from the tax base for income earned by the holder of intellectual property or similar rights and of rights linked to discoveries, who earns royalty fees from the exploitation of such rights. The Law specifies 20% capital gains realized on the transfer of copyrights, patents, and related rights in taxable profit, as well as a related 20% limitation on the offset of capital losses from such transfers. A 30% tax credit is introduced for investments in qualifying innovative start-up companies that may be carried forward up to five years, subject to certain conditions.
