NEWS
Tax Treatment

Foreign Legal Person and Branch Office in the Republic of Serbia

The main questions and dilemmas on the tax treatment

Based on the Law on Business Companies, a branch (of a foreign legal entity) as such, does not represent an independent entity, but with the consistent application of the legal definition, the (foreign) legal entity – the founder of the branch, should be the subject of rights and obligations in the Republic of Serbia, which could be settled through the organizational unit – branch in the Republic of Serbia.

Thus, by the Law on Profit Tax of Legal Entities, a branch of a foreign legal entity represents a permanent business unit of that legal entity in the Republic of Serbia, where that legal entity, through the permanent business unit, is subject to taxation on the profits it makes by doing business in the territory of the Republic of Serbia.

However, when it comes to the interpretation and application of tax regulations to a branch of a foreign legal entity, especially transactions between the parent company – a foreign legal entity and its branch, and the issue of recognizing expenses arising from this relationship, the situation is not so clear in practice and more doubts may arise.

Answers to these questions and more details about the most common dilemmas that can arise in practice on this matter are available in the article (in Serbian and in English) written by JPM Partner Nikola Djordjević and Senior Associate Marija Vukčević.

Scroll to Top

Privacy Policy

Law firm Janković, Popović & Mitić Beograd takes care of your privacy. As a controller and in accordance with the Law on Personal Data Protection and other applicable personal data protection regulations, we are obliged to provide you with information related to processing of your personal data.

We use cookies to help improve your experience of our website by measuring how it’s used.

Read our Privacy & Cookie policy for more information.

This Privacy Notice describes which personal data we collect from you and in which manner, how we use and share your personal data. It contains information on purposes and legal grounds for processing, on the time period in which we store your personal data, the manner we protect this data as well as on your rights.