Post on 07-Aug-2015
Improved Serbian Business Environment Content
Business Environment and Opportunities
Privatization Process
Political Overview and Economic reforms
Forecasts
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POLITICAL OVERVIEW:
Very stabile government, constituted on April 27,
2014
Prime Minister
Aleksandar Vucic,
Serbian Progressive
Party
Pro EU Government
In January 2014 Serbia started the EU membership negotiations.
Screening process successfully completed
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Government goals:
New Labor Law Bankruptcy Law
Law on Inspections Oversight entered Parliamentary
procedureLaw on Planning and Construction
Developing eGovernment Increase predictability of fiscal and para–fiscal burden
Making the level field business environment:
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Serbian Investment and Export Promotion Agency Allocated FundsFinancial Support to Investors
Why?19 calls
281.2 million € allocated
strategic geographic location
Among the lowest corporate tax rates in
Europe of 15%
In 2011, Serbia was the leader in CEE in attracting FDI with € 2.2 billion of inbound investments.
Starting a business in Serbia provides for an opportunity for
customs-free export to a market of 1 billion people.
Serbia is the only country outside of the Commonwealth of Independent States that enjoys a free trade agreement with Russia, but also with Turkey, EFTA, Belarus and Kazakhstan. It is also a member of the CEFTA with 29 million people and one of the biggest markets in the region.
Serbia's labor force offers a unique combination of high quality, wide availability and cost effectiveness.
SERBIAN MARKET OVERVIEW:
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Advantages
The amount of funds which can be awarded to large enterprises is determined up to 50% of the eligible costs for the implementation of the investment project.
The amount of funds may be increased by up to 20 percentage points for small-sized companies and up to 10 percentage points for medium-sized companies.
Serbia`s favorable business environment features:- highly competitive tax rates - and low operating costs.- Educated workforce at competitive rates
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TAX RATES IN SERBIA
20%
20%Copyright, property, profits from gambling and other types of incomeAnnual income tax 10/15%
Corporate profit taxTaxes on dividents, shares in profits, royalties, interest and capital gains
15%
10%15%
Salary tax and income from self-employmentCapital incomes and capital gains
Social Security Contributions
Personal income taxes
For legal entities
Pension and disability insurance -14%Health insurance - 5.5%Unemployment insurance - 0.75%
TAX RATES:
Value Added Tax (VAT) Standard rate 20%Reduced rate 10%
12 / 12 / 14FOCUS SUL MERCATO SERBO
Serbia can serve as a manufacturing hub for duty-free exports to a market of 1 billion people that includes the European Union, the Russian Federation, Kazakhstan, Belarus, Turkey, South -East (CEFTA),EFTA
Upon the completion of negotiations with Egypt, the territory with duty-free
access for Serbian products will expand by an additional 77 million people.
LIBERALIZED TRADE
1.083.259.142Total Market Size
Generalized system of preferences
CEFTAEFTATurkey
Free Trade AgreementFree Trade AgreementFree Trade Agreement
29.990.54213.000.00075.000.000
Preferential Trade Regime 494.070,000EU
USARussia, Belarus, and Kazakhstan Free Trade Agreement 168.640.600
302.558.000
Serbia's Preferential Trade AgreementsMarket Trade regime Number of inhabitants
12 / 12 / 14FOCUS SUL MERCATO SERBO
Exports to the EU market are free-of-customs according to the Stabilization and Association Agreement.
For several food products (baby beef, sugar, and wine) export
quantities are limited by annual quotas.
Imports from the E.U. are pursued based on the Interim Trade Agreement, as part of the Stabilization and Association Agreement, providing for progressive abolishment of import customs duties for industrial and certain agricultural products from E.U. countries by 2014.
Exports to and from EU
12 / 12 / 14FOCUS SUL MERCATO SERBO
Since 2000. Serbia has attracted more than €22.4 billion of inward foreign direct investment.
A list of leading foreign investors that have already invested consists of: FIAT, Telenor, Microsoft, Coca-Cola, Delhaize, Michelin, Gazprom, Bosch, Siemens, Banca Intesa Sanpaolo, UniCredit and many others
FDI BY COUNTRIES
Currently leading spot on the country list is held by Netherlands, followed by Austria, Greece, Norway and Luxembourg, while major investor countries also include Germany, Italy, Slovenia, and the Russian Federation. (USA usually invests through its European affiliates)
FDI BY INDUSTRIES
Service sectors have proven to be the most attractive to international investors. Banking and insurance recorded the largest FDI inflow of €5 billion. Manufacturing industries € 4.8 billion, followed by wholesale, retail and repair of motor vehicles and real estate activities.
FDI facts and figures
Market that investors and traders are willing to examine more closely
Over the medium to long term, structural reforms should create a fundamentally healthier economy.
SEE has lagged behind and now might be the time for a fresh look.
It ranks in the top 10 markets for sales growth potential this year
Forecasts for Serbia and SEE region
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PRIVATIZATION PROCESS IN SERBIA:
Serbia passed a law to privatize almost 600 state-owned firms with a deadline of end 2015.
Some 160 companies are now in the process of restructuring
The state will also allow for debt equity swaps for highly indebted firms and might also grant some debt write-offs to secure the sale.