UniCredit Bank Serbia JSC
Summary:
Double Tax Treaty (DTT) agreement between Serbia and Republic of Armenia was signed on 10 March 2014 and it was adopted by the Serbian Parliament in July 2014. The treaty will enter into force on 1 January 2017
Fri, 09/12/2016
A DTT agreement was signed between Armenia and Serbia on 10 March 2014. The DTT provides the following benefits for investors:
Article 10 – Dividends
- If the recipient is the beneficial owner of the income, a withholding tax rate of 8% will be applicable.
Article 11 – Interest
- If the recipient is the beneficial owner of the interest, a withholding tax rate of 8% will be applicable.
Article 13 – Capital gains
- Current standard tax rate of 20% may be exempted if an Armenian investor sells securities issued by a Serbian issuer, where the issuer has less than 50% of total assets allocated in the company's real estate located in Serbia.
The contracting parties notified each other that they have complied with the necessary domestic laws for the DTT to enter into force. This DTT shall enter into force as of 1 January 2017.
Investors from Armenia, who intend to exercise DTT favourable rates, are obliged to provide Certificate of Tax Residency issued for the current year.
Impact on investors: DTT between Armenia and Serbia is expected to create a more favourable tax environment for eligible investors.