PORESKI ASPEKTI RASPODELE DOBITKA PREDUZEĆA U SRBIJI

Abstract

Taxes may significantly impact company strategic decisions on investments, financing and profit distribution. The objective of the paper is to analyze the tax burden on dividend payment in Serbia, viewed from the aspects of personal income and corporate income tax, as both individuals and legal entities may receive dividends. Further, the possibilities for the implementation of double taxation agreements are analyzed, since significant number of companies is owned by nonresidents. Serbia implements classic corporate income tax system, where income distributed to shareholders is double-taxed – at corporate and shareholder level, which can discourage dividend payments. On the other hand, Serbia has signed double taxation agreements with more than 60 jurisdictions, allowing significant reduction of tax burden on dividends paid to nonresidents. The paper also analyzes tax effects of alternative ways of payments to the shareholders, such as share repurchase and bonuses on salary.