Tomislav Popović, Senior Associate at BDK Advokati, discussed Serbian tax policies and reforms for the November 2017 issue of Biz Life magazine
"Changes to tax laws in Serbia are not sufficiently transparent and predictable. Official proposals of tax laws amendments lack details and background of the tax policy objectives. In some cases changes proposed by the Government introduced taxation which is unnecessary and not rational (like in the case of withholding tax on services rendered by non-resident entities), as it produces little effect on tax revenue, while imposing administrative burdens on businesses. On the other hand, some serious taxation issues such as taxation of PEs remain without legislative intervention for years, which results in a loss of tax revenue and legal uncertainty. The main problems in implementation of tax law remain vague legal provisions, lack of interpretative guidance and binding rulings of tax authorities, understaffed tax administration and lack of specialization of judges for tax law matters, which hinders development of a quality case law in the area of taxation."