Tax credit - Tax International

Taxpayers who invest in the capital of newly established companies engaged in innovation may be entitled to a tax credit of 30% of the invested amount, subject to certain conditions. This credit is granted to taxpayers who, prior to the investment, did not own more than 25% of the shares or equity in the respective company. The right to the tax credit can only be exercised for paid-in monetary contributions that increase the capital of the innovative company, and the taxpayer must not reduce their investment for a period of three years from the date of the investment.

The credit can be used in the first subsequent tax period after the conditions are met, and any unused portion of the credit can be carried forward and applied to corporate income tax over a period of up to five years. The maximum amount a single taxpayer can receive for investing in one newly established company is 100,000,000 RSD, while in a single tax year, the credit that can be used is limited to 50,000,000 RSD.

For taxpayers with related parties, the maximum tax credit amount is adjusted based on the credits already claimed by those related parties. Newly established companies are defined as those that have been incorporated for less than three years, have an annual revenue of less than 500,000,000 RSD, and do not distribute dividends for three years following the investment.

Additionally, the companies must meet certain criteria related to research and development or employ highly qualified staff.

Furthermore, banks are entitled to a tax credit of 2% of the outstanding debt related to the conversion of housing loans indexed in Swiss francs. This credit is applied over two consecutive tax periods, and if the taxpayer is unable to utilize the credit in full, the unused portion may be carried forward to future tax periods, but no longer than ten years.

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