Tax Highlights - March 2025

NEW RULEBOOK ON „ARM’S LENGTH“ INTEREST RATES FOR 2025

Serbian Ministry of Finance issued in the Official Gazette number 17/25 of 27 February 2025 new Rulebook which defined the interest rates which are for the purposes of corporate income tax for 2025 considered to be at the “arm’s length” level. Interest rates are the following:

For Banks and finance leasing companies:
  1. 3,92% for short-term loans in RSD;
  2. 0,81% for long-term loans in RSD;
  3. 4,59% for loans in EUR and RSD loans denominated in EUR;
  4. 5,26% for loans in USD and RSD loans denominated in USD;
  5. 2,75% for loans in CHF and RSD loans denominated in CHF;
  6. 4,09% for loans in SEK and RSD loans denominated in SEK;
  7. 1,71% for loans in GBP and RSD loans denominated in GBP;
  8. 3,25%  for loans in RUB and RSD loans denominated in RUB;.
For other legal entities:
  1. 8,01% for short-term loans in RSD;
  2. 8,24% for long-term loans in RSD;
  3. 6,41% for short-term loans in EUR and RSD loans denominated in EUR;
  4. 6,79% for long-term loans in EUR and RSD loans denominated in EUR;
  5. 7,50% for long-term loans in CHF and RSD loans denominated in CHF;
  6. 8,31% for short-term loans in USD and RSD loans denominated in USD;
  7. 3,40% for long-term loans in USD and RSD loans denominated in USD.
Above interest rates will be applied for determination of interest income and expenses in accordance with „arm’s length“ principle for the purpose of preparation of corporate income tax return and tax balance sheet for 2025.