Draft contract on avoidance of double taxation signed between Serbia and Austria

Draft contract on avoidance of double taxation between Serbia and Austria was signed on November 19th, after long-lasting negotiations and with the engagement of the ministries of finance of Serbia and Austria, the Chamber of Commerce of Austria, as well as the Trade Department of the Embassy of Austria.

- Following the completion of all language versions and legal procedures, the agreement on avoidance of double taxation should be put in effect in 2011 - the Trade Department of the Embassy of Austria told "eKapija".

The accepted withholding tax rate is 10%, while bank Österreichische Kontrollbank and development bank Entwicklungsbank are excluded from taxation.

In case the Republic of Serbia changes the Agreement with any of the members of European Union by changing the withholding tax, Austria will start new negotiations with Serbia.

The two countries agreed that the withholding tax on software (copyright) should amount to 5%.

Pensions and similar incomes will be taxed by the state where pension was paid.

The Republic of Serbia has recently signed the Agrement on avoidance of double taxation with Spain, Denmark and Ireland, and that Agreement anticipates the withholding tax in amount of 10%.