DTT Between Serbia and Georgia Adopted

According to the Ministry of Finance the double taxation treaty with Georgia that has been duly ratified by both countries will enter into force on 1 January, 2014.                    

The DTT between Georgia and Serbia will provide the following benefits:

Article 10 – Dividends:

• The applied withholding tax rate is 10% if the recipient is the beneficial owner of income.

Article 11 – Interest:

• The applied withholding tax rate is 10% if the recipient is the beneficial owner of interest.

Article 13 – Capital gains:

• The current standard tax rate of 20% may be subject to exemption (0%) in case a Georgian investor sells securities of a Serbian issuer whose securities are less than 50% of the total assets that are allocated in the company's real estate property currently located within Serbia.

Investors from Georgia who intend to exercise DTT rates are obliged to provide a certificate of tax residency issued by the Serbian Ministry of Finance and Economy, which must be valid for the current year of use.

Impact on investors: DTT between Georgia and Serbia enters into force on 1 January, 2014.