A new DTT with San Marino has been confirmed by the Serbian Parliament and provides for the following benefits:
Article 10. Dividends
- Applied tax rate of 5%, if the recipient holds, within the period of 365 days (pay date included), at least 25% threshold of the issuer paying the income
- Applied tax rate of 10%, if the recipient holds less than 25% threshold of the issuer paying the income
Article 11. Interest
- Applied tax rate of 10%
The two contracting states shall notify each other in writing, through diplomatic channels, that the procedures required by their domestic laws for the entry into force of the DTT, have been complied with. The DTT shall thus not enter into force before 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 the DTT has entered into force.
Impact on investors: The DTT between San Marino and Serbia is expected to create a more favorable tax environment for eligible investors.