Income tax

Corporate income tax in Serbia is 15%. It is charged on profit as it is earned during the year rather than when it is distributed to owners — the ordinary arrangement, unlike the handful of countries that tax only on distribution.

The base is not the accounting profit but the taxable profit computed in the tax return: some costs are not deductible, and investment incentives can reduce the charge substantially.

So a company reporting a profit may show little or no tax. That on its own is not unusual.