Amendments to Corporate Income Tax Law affect investors - Tax reliefs requested for investments in machinery and equipment in 2014

Serbian lawmakers have adopted the amendments to the Corporate Income Tax Law, which stipulate the abolition of tax reliefs for companies investing in machinery and equipment. Due to such decision, the American Chamber of Commerce (AmCham) has sent a letter to MPs in which it invites them to postpone the abolition of tax reliefs until 2015.
- This change is announced only one month before it takes effect. Investors make medium-term investment plans, meaning that such a change will have a serious effect on business plans for 2014 that are already prepared and adopted. This is unexpected and surprising for our members, who are the largest investors in Serbia - AmCham's letter reads.

In 2012, the effective rate of income tax for companies investing in equipment and facilities was at 5 percent. In two years, owing to these amendments, this rate has tripled - to 15 percent.

AmChams Washington

Narodna skupština Republike Srbije

American Chamber of Commerce

AmCham

Corporate Income Tax Law

income tax

tax reliefs