HELLO, HERE WE ARE…

In case you don’t know…

Serbia!

INTRODUCTION

Serbia is a sovereign state situated at the crossroads between Central and Southeast

Europe. The capital Belgrade is one of the largest cities in Southeast Europe. We have very

rich and interesting history, unfortunally we were often at war because of good geographic

position. Therefore, the development of our country is slow because of bad policy and

economics.

I would like to present you my point of view for improving the Investment Climate in my country…So, let me tell you a few things about Serbia…

It is not so good place to live?

I AGREE!• 7,114,393 inhabitants;

• Unemployment rate: 17,9%

• Manpower: 3,260,000

• Population below poverty line: 9.2%

• GDP: $43.866 billion (Nominal)

• Inflation (CPI): positive decrease 2.08%

• Public debt: $30.28 bn (71% of GDP)

• Budget deficit: $2.94 bn (6.9% of GDP)

• Natural increase: -34 786

• Percentage of highly educated population: 6,5%

Serbia

Bosnia and Herzegovina

Croatia

GDP in Serbia and neighboring countries:

Public debt and fiscal deficit (%GDP)

2013- 2018

Public debtDeficit Public debt (fiscal strategy)

Public debt

2009- 2014

Millions of euro

%GDP

LIGHT AT THE END OF THE TUNNEL?

A lot of young people have started to educate in order to

help their country.

And another thing, we have learned something in last 3

weeks, so we have some new ideas ...

1.STABLE MACROECONOMIC ENVIRONMENT

The term "Macroeconomic Stability" describes a national economy that has minimized

vulnerability to external shocks, which in turn increases its prospects for sustained

growth.

Stability is measured by five variables:

Low and stable inflation

Low long-term interest rates

Low national debt relative to GDP

Low deficits

Currency stability

2.REDUCE RED TAPE IMPEDIMENTS TO DOING BUSINESS

• Revising land rules in order to speed up projects

• Ameliorate tax administration

• Facilitate the registration process

Well, a investor and a company with investment should enjoy tax and customs benefits

also, the import of items which represent investment should be free…

Inward FDI by Industries 2004-2013

Industry Investment value

(EUR million)

Financial Intermediation 4,968

Manufacturing 4,766

Wholesale, retail and repairs 3,167

Real estate activities 2,459

Transport, storage, communication 2,456

Construction 586

Minig and quarrying 544

Agriculture, forestry and fishing 194

Other utility, social and personal services 136

Professional, scientific and technical activities 119

Accomodation and food services 97

Public administration and social insuarence 83

Electricity, gas and water 73

Administrative and support service activities 26

Education 4

Overview of key tax incentives in

Serbia

Corporate Profit Tax Holiday Companies are exempt from Corporate Profit Tax for a

period of 10 years starting from the first year in which

they report taxable profit if they invest an amount

exceeding RSD 1 billion in fixed assets and employ at

least 100 additional employees throughout the

investment period.

Avoiding Double Taxation There is an extensive list of double taxation avoidance

treaties presented in Taxation section of this

publication.

Reduced Salary Load New employment entitles employers to a sizable relief

of taxes and contributions paid on net salary from the

moment of employment until the end of second year.

Value Added Tax Exemptions in Free Zones Entry of goods, transportation and other services

provided to users of Free Zones as well as supplies of

goods and services withing the Free Zones in Serbia is

exempted from Valued Added Tax. There are six Free

Zones, currently operating in the country: Subotica,

Novi Sad, Zrenjanin, Sabac, Kragujevac, and

Pirot.Three more zones are being prepared in Nis,

Smederevo and Uzice. Foreign companies can establish

a privately- owned Free Zone based on the project

approved by the government.

COMING TO THE END…

Serbia got few very important investments in recent years as “Telenor”, ”Fiat”, ”GazpromNeft”,

“Etihad”… There is also intention from the UAE to invest heavily in Belgrade real estate that

revolves around Belgrade Waterfront project, which was initiated in 2014.

…This is for now, I hope that in future we will attract more

investments and that we will succeed in our plans for Serbia!

Thank you for attention!