DEFINITION OF DOUBLE TAXATION TREATIES
Double taxation treaties are generally bilateral international treaties concluded between two countries (signatory countries). As the name implies, the Treaties make it possible to avoid double taxation (on the basis of taxes defined by the Treaty itself) between signatory countries under certain conditions.
A significant need for these Treaties has arisen due to the expansion of the process of globalization, i.e. the "erasing of borders" between, above all, developed countries. Namely, a large number of companies and people have started thinking globally which means that they are not limited by the country where business was originally started. This raises the issue of taxation in different countries. Given that a strong economy is essential for every country, the emergence of the Double Taxation Treaty was a logical next step.
Thousands of such treaties have been signed so far worldwide. It is important to note that there are two basic models of the Double Taxation Treaty, O.E.C.D. model and United Nations guidelines. It is worth noting the great importance of these Treaties and how many countries that have signed a large number of Treaties have a better position in the global market.
AN OVERVIEW OF THE COUNTRIES WITH WHICH THE REPUBLIC OF SERBIA HAS CONCLUDED DTT's AND THE COUNTRIES WITH WICH NEGOTIATIONS ARE ONGOING
The Republic of Serbia has 61 Treaties on the avoidance of double taxation signed. Most of the Treaties have been signed with European countries. It is interesting to note that Canada is the only country from the American continent with which the Republic of Serbia has a treaty signed. The Republic of Serbia bases its Treaties on the O.E.C.D. model.
In 2020, the Treaty was signed with Japan and Hong Kong. The next step when we talk about the Treaty with Japan is ratification by Parliament in order for the Treaty to enter into force, while the Treaty with Hong Kong has already entered into force. The Agreement has been initialed with Algeria.
Negotiations are ongoing with Portugal. Also, according to the latest information, negotiations are ongoing with Liechtenstein, Singapore and the United States, which is especially important for our country.
The agreement signed with Malaysia does not apply from January 1, 2019.
The Republic of Serbia is a signatory to the Multilateral Convention (“MLI” - Multilateral Instrument), which is effective since October 2018. The Multilateral Convention makes it easier to harmonize or amend the Double Taxation Treaty. As a consequence of the Multilateral Convention, the Republic of Serbia has so far amended the Treaties with signed an agreement with Albania, Austria, Belgium, Bosnia and Herzegovina, the Czech Republic, Denmark, Egypt, Finland, France, Georgia, the Netherlands, India, Indonesia, Ireland, South Korea, Canada, Qatar, Kazakhstan, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Norway, Poland, Russia, Slovakia, Slovenia, the United Arab Emirates, Ukraine, and the United Kingdom.
Countries with which the Republic of Serbia has concluded Double Taxation Treaties:
