Serbia: Transfer Pricing Documentation

16.11.2016

Transfer pricing legislation in Serbia, including liability to prepare and submit transfer pricing documentation file, has not been changed so far nor has been harmonized in accordance with the recommendations of BEPS Action point 13. However, the Corporate Income Tax Law recognizes significance of the OECD transfer pricing guidelines by envisaging that the transfer pricing legislation in Serbia is to be developed further in accordance with the OECD’s sources relevant to this matter.

Consequently, it can be concluded that, in the course of practical application of general legislation framework, Serbian taxpayers may rely on the OECD transfer pricing guidelines.

1.  Types of transfer pricing documentation files

A taxpayer is required to submit the following local transfer pricing documentation file to the tax administration:

  • Full-scope transfer pricing report – includes analysis of the group of related entities, business activity analysis, functional analysis, selection of transfer pricing method, benchmarking analysis and conclusion of the transfer pricing analysis; or
  • Simplified transfer pricing report – includes only basic data about intercompany transactions of a taxpayer, without detail analysis and supporting the arm’s length character of the intercompany transactions.

Which of the above reports should be prepared by a taxpayer depends on the value and nature of transactions between related parties. Thus, the simplified transfer pricing file shall be submitted if the following conditions were met:

  • Specific related party transaction is regarded to be one-off transaction and does not exceed RSD 8 million in a fiscal year; and/or
  • Total value of all transactions with a specific related party during a fiscal year does not exceed RSD 8 million.

2.  To whom it applies?

Transfer pricing documentation file should be submitted by all entities who had transactions with related parties during a fiscal year, irrespective of these transactions were domestic or cross-border.

3.  Timeframe

Transfer pricing documentation file should be submitted annually, together with corporate income tax return, within 6 months from the end of a fiscal period. 

4.  Frequency of transfer pricing documentation update

Transfer pricing documentation should be prepared and submitted annually. Benchmarking analysis should include last available financial data at the time of submitting the documentation.

5. Transfer pricing documentation: OECD vs. Serbia

OECD BEPS Action 13

Serbian legislation

What?

Country by Country report

Masterfile

Local file

 Local File

Who?

CbC Report: ultimate parent company of
a MNE group with annual consolidated
revenue of the group > EUR 750 mil.

Masterfile and Local file: all taxpayers

All tax payers

When?

CbC Report: within 12 months from the
end of the relevant fiscal year;

Masterfile and local file: according to
local regulations

6 months after the end of a fiscal year,
together with corporate income tax return

Update and benchmarking analysis?

Annual update

New benchmarking analysis every 3 years
providing business activity conditions
remain unchanged

Annually

 

If you have questions about the OECD BEPS Action plan in Serbia and Europe contact our transfer pricing experts for consilidation.