CONEO Serbia

Foreign Business Travel Allowances in Serbia (2026): What Is Tax-Exempt and What Is Not? ✈️

Business travel abroad is a regular part of international operations, but the tax treatment of travel allowances remains an area where employers should pay close attention.

In Serbia, foreign business travel allowances may be paid tax-free, but only if specific legal and administrative requirements are met.

📌 Key considerations for employers
➡️ Foreign travel allowances are generally tax-exempt up to the prescribed limit, with a maximum of EUR 90 per day.
➡️ The business trip must be properly documented through a travel order and supporting records.
➡️ The right to receive travel allowances should be regulated by an internal policy, collective agreement, employment contract, or other applicable internal act.
➡️ The duration of the trip should be calculated according to the actual travel time, not simply by counting calendar days.

⚠️ Common compliance risks
➡️ Paying travel allowances without a valid internal policy.
➡️ Incorrect calculation of travel duration.
➡️ Treating accommodation, transport, or other reimbursable expenses as part of the daily allowance.
➡️ Failing to calculate taxes and contributions on amounts exceeding the tax-exempt threshold.

💡 Proper documentation and accurate calculations are essential to ensure compliance and avoid potential tax exposure during inspections.

Companies with international operations should periodically review their travel policies and reimbursement procedures to ensure alignment with current tax regulations.

Director Engagement in Serbia: employment contract or management agreement?

Choosing the right model for appointing a company director is an important legal and tax decision for every business. 📊

Under Serbian law, directors can be engaged either through a standard employment contract or through a management agreement outside of employment, each with different legal, tax, and administrative implications.

📌 Key considerations for companies
➡️ directors may be engaged as employees or under a management agreement
➡️ foreign directors generally require a Single Permit for residence and work for long-term engagements
➡️ specific restrictions apply regarding who may serve as a director

⚖️ Tax and contribution aspects
➡️ remuneration paid under a management agreement is generally treated as "other income" for tax purposes
➡️ social security contributions may still apply
➡️ benefits such as accommodation, travel expenses, and company vehicles can also create tax obligations

🌍 For foreign directors
➡️ residency status may impact taxation in Serbia
➡️ double taxation treaty provisions may apply depending on the country of residence
➡️ proper structuring is essential to avoid legal and tax risks

💡 Selecting the appropriate engagement model can significantly affect compliance, taxation, employment costs, and corporate governance.

👉 Companies should carefully assess their management structure to ensure alignment with Serbian labour, corporate, immigration, and tax regulations.

If you need support with director appointments, management agreements, or international executive engagements, feel free to contact CONEO Serbia.

Foreign-Sourced Income: Are You Meeting Your Tax Obligations in Serbia? 🌍

Individuals earning income from abroad should carefully assess their tax obligations in Serbia. Depending on the type of income, residency status, and applicable regulations, different reporting and taxation rules may apply.

📌 Key considerations
➡️ Identify the type and source of foreign income.
➡️ Determine whether the income is subject to taxation in Serbia.
➡️ Review applicable filing deadlines and reporting requirements.
➡️ Verify whether a double taxation treaty may apply to your specific situation.

⚠️ Common mistakes
➡️ Assuming all foreign income is taxed the same way.
➡️ Missing reporting deadlines due to incomplete documentation.
➡️ Failing to retain supporting records needed for tax compliance.

💡 Proper planning and complete documentation can help avoid unnecessary corrections, penalties, and administrative complications.

Whether you are an employee, freelancer, entrepreneur, or receive income from foreign sources, reviewing your tax position in advance is the best way to ensure compliance with Serbian tax regulations.

If you need support in assessing your tax obligations related to foreign income, feel free to contact CONEO Serbia.

Beneficial Ownership Documentation: A 10-Year Record Retention Obligation Already in Force 📑

While many provisions of Serbia's new Law on the Central Register of Beneficial Owners will apply from September 2026, one important obligation has already been in effect since March 2025.

Companies are required to retain the documentation used to identify their beneficial owners, making proper record management an essential compliance requirement.

📌 Key points
➡️ Supporting documentation for determining the beneficial owner must be retained for 10 years from the date of the last registered change.
➡️ If the legal entity ceases to exist, the documentation must be kept for an additional 5 years.
➡️ Required records may include ownership structures, corporate documents, shareholder agreements, powers of attorney, and other evidence establishing control.

⚠️ Compliance matters
➡️ The obligation to retain documentation is separate from the records maintained by the Serbian Business Registers Agency (APR).
➡️ Failure to comply may result in significant financial penalties for both legal entities and responsible individuals.

💡 Companies should review their corporate records, ensure supporting documentation is complete and accessible, and establish clear internal responsibility for maintaining these records in accordance with the legal retention periods.

Proper documentation is not only a regulatory requirement—it is an essential part of effective corporate governance and compliance.

Receivables in Bankruptcy: Why Proper Management Matters ⚖️

Receivables are more than an accounting item—they are a valuable business asset that can significantly impact a company's liquidity and financial stability.

When bankruptcy proceedings are initiated, all assets of the debtor, including outstanding receivables, become part of the bankruptcy estate. Their timely identification, documentation, and collection play a crucial role in maximizing value for creditors.

📌 Key considerations

➡️ Receivables form part of the company's assets and should be accurately recorded and monitored.

➡️ After bankruptcy proceedings begin, the bankruptcy administrator assumes responsibility for managing the debtor's assets, including the collection of outstanding receivables.

➡️ A comprehensive inventory of assets, liabilities, debtors, and creditors is one of the first and most important steps in the process.

➡️ Proper accounting records and complete supporting documentation are essential for protecting creditors' interests and ensuring an efficient bankruptcy procedure.

💡 Effective receivables management is not only important during regular business operations—it also plays a critical role in insolvency proceedings by helping preserve asset value and improve recovery outcomes.

👉 Companies should maintain accurate financial records and monitor receivables proactively to reduce financial risks and strengthen long-term business resilience.

Jubilee Awards in Serbia: Who Is Eligible and How Are They Taxed? 🎖️

Jubilee awards are a common way for employers to recognize employee loyalty, long-term commitment, and years of service. However, their tax treatment and eligibility conditions require careful attention.

📌 What employers should know
➡️ Jubilee awards are typically granted for 10, 20, 30, or 40 years of service, but may also be linked to company anniversaries or other significant milestones.
➡️ Eligibility criteria should be clearly defined in an employment contract, collective agreement, or internal company policy.
➡️ Employees who meet the established conditions must be treated equally under the applicable rules.

💰 Tax treatment
➡️ Jubilee awards are not considered regular salary and may qualify for a tax-exempt threshold prescribed by Serbian tax regulations.
➡️ Any amount exceeding the non-taxable limit becomes subject to personal income tax.
➡️ Different tax rules may apply when awards are granted to individuals who are not employees of the company.

🎁 Awards do not have to be paid exclusively in cash.

Companies may also choose to provide gifts, vouchers, or other benefits, provided that their value is properly documented and the corresponding tax treatment is correctly applied.

💡 Well-defined policies and proper documentation help employers reward employee loyalty while ensuring compliance with labour and tax regulations.

Rulebook on the Central Invoice Register published in Serbia

Serbia has officially published the new Rulebook on the Central Invoice Register, which will enter into force on July 1, 2026. 📄

The Rulebook was adopted following recent amendments to the Law on Settlement Deadlines in Commercial Transactions and introduces additional obligations for public sector entities regarding invoice and payment reporting.

📌 What does this mean in practice?
➡️ public sector entities must report payment settlements through the Treasury Administration information system
➡️ payment data must be entered within three working days from the date of settlement
➡️ all overdue and unresolved payment obligations must be updated in the system by July 1, 2026

⚖️ The Rulebook further regulates
➡️ the registration of electronic invoices in the Central Invoice Register
➡️ procedures for recording and settling obligations
➡️ the management and content of the register itself

💡 The introduction of these rules represents another step toward improving transparency, monitoring payment obligations, and strengthening digital financial administration in Serbia.

If you need support in understanding how these changes may impact your invoicing or compliance procedures, feel free to contact CONEO Serbia.

New rules for alternative investment funds in Serbia

Serbia has adopted amendments to the Rulebook on Alternative Investment Funds, introducing stricter requirements for fund operations, investor communication, and advertising. 📊

The new rules aim to strengthen transparency, investor protection, and regulatory oversight in the investment fund sector.

📌 Key changes
➡️ public-offer alternative investment funds must now have a prospectus and key investor information document
➡️ privately offered funds are required to adopt formal operating rules
➡️ all documentation and amendments must be approved by the Securities Commission

⚖️ Stronger investor protection
➡️ prospectuses must clearly explain investment strategies, risks, fees, and investor rights
➡️ investors must be informed about significant changes in fund operations
➡️ investors may request redemption without exit fees within 40 days in certain cases

📢 New advertising requirements
➡️ fund marketing must be clear, accurate, and based on verifiable information
➡️ misleading statements and guaranteed return claims are prohibited
➡️ advertising materials must be submitted to the Securities Commission before publication

💡 The amendments further strengthen Serbia’s capital market framework with a stronger focus on transparency, accountability, and informed investing.

If you need support in understanding how these regulatory changes may impact your investment or compliance processes, feel free to contact CONEO Serbia.