close
Share with your friends

Serbia: Country-by-country reporting rules are enacted

Serbia: Country-by-country reporting rules are enacted

Serbia’s parliament in December 2019 passed legislation that amends the corporate income tax law, and specifically that includes requirements for country-by-country (CbC) reporting of controlled transactions within a corporate group.

1000

Related content

The rules provide that annually, a CbC report must be submitted by the Serbian tax resident that is the ultimate parent legal entity of an international group of related legal entities. The CbC report is due within 12 months after the end of the business year for which the CbC report is being prepared.

For these purposes, an international group of related legal entities is a group of entities that are interconnected by ownership or control in terms of international accounting standards (i.e., IFRS) and that have total consolidated income of at least €750 million annually. In addition, it is necessary that at least one member of the multinational group be required to prepare consolidated financial statements in accordance with IFRS (that is, this member has such an obligation if its shares are traded on a regulated market, and if the group members are subject to taxation in at least two tax jurisdictions (including permanent establishments)).

The “ultimate parent” entity of an international group is a legal entity that is a member of an international group, that has the ownership or control of one or more legal entities, that has an obligation to prepare consolidated financial statements (or that would be required to do so if it traded shares on a regulated market). And there is no other legal entity within the international group that has ownership or control of that entity and that is required to prepare consolidated financial statements.

A separate rulebook (that is, regulation) will be expected to specify in greater detail the conditions and manner of submission of the CbC report.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal