DTT with Armenia

UniCredit Bank Serbia JSC
Summary: 
Double Taxation Treaty between Armenia and Serbia confirmed by the Serbian Parliament.
Fri, 04/07/2014

Dear Client,

The Serbian Parliament adopted today a Double Taxation Treaty (DTT) agreement with Armenia that was originally signed on 10 March, 2014.  

The DTT between Armenia and Serbia provides the following benefits: 

Article 10 – dividends:

  • Applied withholding tax rate of 8%, if the recipient is the beneficial owner of the income.

Article 11 – interest:

  • Applied withholding tax rate of 8%, if the recipient is the beneficial owner of the interest. 

Article 13 – capital gains:

  • Current standard tax rate of 20% may be subject to exemption (0%), in case an Armenian investor sells securities of a Serbian issuer, less than 50% of whose total assets are allocated in company's real estate property located in Serbia.

Investors from Armenia who intend to exercise DTT favourable rates are obliged to provide Certificate of Tax Residency issued for the current year. 

The Contracting States shall notify each other in writing, through diplomatic channels, that the procedures required by their domestic laws for the DTT’s entry into force have been complied with. This DTT shall enter into force on the date of the later of these notifications and shall thereupon have effect on, or after, the first day of January in the calendar year following the year in which this DTT enters into force.

Impact on investors: DTT between Armenia and Serbia is expected to create a more favourable tax environment for eligible investors