National taxes in Serbia:

Personal income tax paid by natural persons who earn income. Subject to Income Tax are the following types of income (earnings, income from agriculture, forestry, income from self-employment, income from copyrights, rights related to copyright and industrial property rights, income from capital, income from real estate, capital profits).

The income tax rate is 12% of earnings, where the income is considered income realized on the basis of employment, as defined by the law governing labor relations and other employee benefits.

Tax incentives for newly employed:

Permanent employment of an unemployed person up to 30 years of age - exemption from contributions in the next three years;

Permanent employment of an unemployed person aged over 45 years - exemption from contributions in the next 2 years.

Corporate income tax - taxpayer of the corporate income tax is a company established in one of the following forms:

joint-stock company;

limited liability company;

partnership;

limited partnership;

publicly owned corporation;

public enterprise.

Tax credit:

For investing in new equipment to perform activities, reduction from the tax base 20% of the cost of new equipment, but maximum up to 50% of the tax base.

Value added tax (VAT) is a general consumption tax, which is calculated and paid on delivery of goods and services in all stages of production and supply of goods and services as well as on the importation of goods.

Taxpayer is a natural person or company who supplies goods and services within the performance of its activity. The activity is an activity carried out for the purpose of earning income.

Turnover of 2 - 4 million RSD - can be VAT taxpayer;

Turnover of over 4 million RSD - must be VAT taxpayer.

General VAT rate VAT on goods and services or import goods is 18% and the special rate amounts to 8% (computer equipment, food, brand new facilities...).

Revenues of local self-government units

With each transfer or assignment of new jobs to local self-government units, the Republic undertakes to provide it with adequate resources, i.e. sources of income necessary to perform such job.

Budget of a local self-government unit are provided from source and shared revenues, transfers, income in respect of borrowings and other revenues and income.

Source revenues of a local-self government unit - Source revenues generated on the territory of a self-government unit belong to that unit, specifically: 

1.       Property taxes, except taxes on the transfer of absolute rights and inheritance and gift tax;

2.       Local Administrative Fees (determined by the Assembly of a local self-government unit, but cannot be more than the amount of the Republic Administrative Fee);

3.       Local Utility Fees (The taxpayer of the local utility fee is a beneficiary of rights, objects and services which use requires payment of the utility fee.  Amount of the fee is determined by the Assembly of a local self-government unit);

4.       Tourist tax (introduced by the act of the Assembly of a local self-government unit);

5.       Fee for development land use;

6.       Fee for development land arrangement;

7.       Environment protection and improvement fee;

8.       Revenues from concession fees for performing utility activities and revenues from other concession jobs, concluded by the local government unit in accordance with the law;

9.       Fines pronounced in a violation proceeding for offenses prescribed by an act of the Assembly of a local self-government, as well as seized property benefit in such proceedings;

10.   Revenues from rent, i.e. use of a real estate in the state property used from the local self-government unit and indirect beneficiaries of its budget;

11.   Revenues from sale of movables used from the local self-government unit and indirect beneficiaries of its budget;

12.   Revenues realized by the local self-government unit's organs and organizations from their activities;

13.   Revenues from interest on the local self-government unit's budget;

14.   Revenues from donations to the local self-government unit;

15.   Revenues from citizen's contribution;

16.   Other revenues determined by the law.

Source revenue rates, as well as manner and measures for determining the height of local fees, is determined by the decision of the Assembly of a local self-government unit.

Local Utility Fees:

1. Placement of a firm on a business space;

2. Placement and inscription of a firm outside the business space on buildings and spaces belonging to the local elf-government (roads, pavements, green areas, poles etc.);

3. Keeping motor road and attached vehicles, apart from agricultural vehicles and machines;

4. Using showcases for exhibition of goods outside the business premises;

5. Keeping restaurants and other hospitality and entertainment structures on water;

6. Keeping pets and exotic animals on the territory of the city of Kraljevo;

7. Using space on public areas or in front of business spaces for business purposes, except for sale of newspapers, books and other publications, products of old and artistic crafts and handicraft;

8. Keeping game equipment (entertainment games);

9. Keeping musical appliances and organizing music programs in restaurants;

10. Using advertisement boards;

11. Using free spaces for camping, placing tents or other structures for temporary use;

12. Using the coastline in business and any other purposes;

13. Occupying public space with construction material for execution of performance works.

Fees for placing a firm on a business space are established annually, and that:

a) Kraljevo

- Extra zone 38,400.00 RSD

- First zone 30,000.00 RSD

- Second zone 24,000.00 RSD

- Third zone 18,000.00 RSD

- Fourth zone 12,000.00 RSD

- Fifth zone 9,000.00 RSD

- Sixth zone 7,440.00 RSD

b) Mataruska Banja

- First zone 18,000.00 RSD

- Second zone 12,000.00 RSD

- Third zone 9,000.00 RSD

- Fourth zone 7,440.00 RSD

- Other settled places 7,440.00 RSD

Local utility Fee in the amount of 96,000.00 RSD is collected for banking activity, property and personal insurance, oil and oil derivates trade, telecommunication (fixed and mobile telephony),  postal services, power industry and organizing games of chance (betting, bingo, lotto, casinos etc.), regardless of the zone where the business space with a placed firm is located.   

Firm fee is reduced for:

1. Legal persons divided into medium or small legal persons according to the Accounting and Auditing Law ("The Official Gazette of the Republic of Serbia", no. 46/06), specifically:

a) 20% for medium legal persons

b) 30% for small legal persons

2. 50 % for entrepreneurs and advocacy offices.

LAND PRICE

Criteria and standards for calculation and contracting of the amount of rent of public and other development land in state ownership and charges for arrangement of development land in the area of the City of Kraljevo are defined by the Assembly Decision on Criteria and Standards for Determining Rents and Charges for Development Land Arrangement, which was published in "The Official Journal of Kraljevo ", No. 20/04.

Rent and fee for development land arrangement are be determined according to the zones and the purpose of building and land, while the fee for development land arrangement, in addition to the above criteria, is also determined according to the cost of arrangement of development land (costs of preparation and equipping).

The basis for the delimitation of the  zone limits are economic, i.e. market criterion of the location value, where the location value is proportional to  its attractiveness and excellence, traffic service and accessibility, scope and diversity of offer within the zone, number of users  visiting it, special benefits for a particular purpose, etc.

The following housing-commercial zones have been established on the territory of Kraljevo:

•1.     For the territory of the General Plan of Kraljevo .................................................... extra + 6 zones,

•2.     For the territory of the General Regulation Plan for Mataruska Banja .................. 4 zones,

•3.     For the territory of the General Regulation Plan for Usce...................................... 4 zones.

Purpose of a building - space, i.e. land for which the rent and fee are determined:

•1.     Housing buildings of multi-family housing construction, and other housing buildings in line,

•2.     Family housing buildings,

•3.     Public buildings,

•4.     Commercial buildings,

•5.     Business activities buildings. 

Rent for the public and other development land in state ownership is calculated according to zones. The rent is determined in net amount on a monthly basis and it is calculated per square meter of land is leased in a particular zone.

INITIAL AMOUNT OF RENT ON MONTHLY BASIS IS:

KRALJEVO

FEE FOR ARRANGEMENT OF PUBLIC DEVELOPMENT LAND

Arrangement of public development land includes costs of preparing and equipping public development land, as follows:

Ø  Preparation of public development land includes exploratory works, development of geodesic and other surfaces, making plans and project documentation, resolving property-legal issues, renovation of the field, making a program for land arrangement and other works,

Ø  Equipping public development land includes the construction of buildings and water supply and sewage networks, traffic areas with complete equipment, construction of parking lots and pedestrian areas, building and arrangement of public green spaces with support facilities and other works.

Amount of fee for arrangement of public development land is determined according to:

-       Costs of arrangement of public development land,

-       Purpose of building - space (i.e. land) anticipated for construction.

AMOUNT OF FEE FOR ARRANGEMENT OF PUBLIC DEVELOPMENT LAND  

Fee for arrangement of public development land is defined with the Decision on Criteria and Standards for Determining Rents and Charges for Development Land Arrangement, which was published in "The Official Journal of Kraljevo ", No. 20/04 and the Decision on Amendments on the Decision on Criteria and Standards for Determining Rents and Charges for Development Land Arrangement, published in "The Official Journal of Kraljevo ", No. 7/07.

Land price depends on the distance of the location and its infrastructure equipment.

Cost related to facilities construction and business operation in Kraljevo

Price of infrastructure connection (average price in €):

Data source: Public Utility Enterprises

Other costs (average price in €):

Data source: Public Utility Enterprises