Tax incentives for innovations – No threshold for advertising costs from 2019

Beginning with 2019, all investments in marketing activities, and not just 10%, will be recognized. In other words, all funds put into advertising will be recorded as expenditures in tax balances, the Chamber of Commerce of Serbia (CCIS) announced.

The CCIS proposed the abolition of the marketing expenses threshold, which the Ministry of Finance accepted and included in the Draft Law on Income Tax for Legal Entities, together with the previously announced change in the manner of the calculation of tax amortization.

The proposed amendments also mean that the CCIS’ push to implement incentives for innovations, research and development has been recognized.

With these amendments, investments in research and development will be recognized as an expense in double the amount of the actual cost, and 30% of the investments in new innovative companies will be recorded as tax credits.

A total of 80% of intellectual property income will be exempt from taxation, the press release says.

According to Finance Minister Sinisa Mali, these CCIS initiatives have allowed for the interests of the economy to be implemented in the new law.

The CCIS announces that these are the first steps in unburdening the economy, reducing the costs and improving the tax environment and adds that 2019 will be a year of reforms of the Tax Administration and the taxation system in Serbia.

Privredna komora Srbije

Ministarstvo finansija Republike Srbije

Poreska uprava Srbije

CCIS

Draft Law on Income Tax for Legal Entities

investments in marketing activities

tax balances

Sinisa Mali

taxation system in Serbia