Ministry of Finance of the Republic of Serbia has published the Rulebook on arm’s length interest rates that are applicable for 2019. The Rulebook will enter into force eight days after being published in the Official Gazette of the Republic of Serbia. There is mainly a decrease in the arm’s length rates (in comparison to the previous year).

According to the Corporate Income Tax Law of Serbia, the arm’s length level of interest can be determined either by using the interest rates published by the Ministry or by using general transfer pricing rules. Legal entities can opt which of these two approaches they will take, however, their selected approach needs to be applied on all inter-company loans.

Interest rates published by the Ministry of Finance that can be considered arm’s length for 2019: