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Amendments to the Law on Corporate Income Tax were adopted at the end of 2015, introducing an important new element relating to taxation of non-residents in Serbia.

Amendments to the Law on Corporate Income Tax were adopted at the end of 2015, and came into force on January 1 2016. Among other things, these amendments introduced new cases in which the write-off of accounts receivable is recognized in corporate tax balance sheets.

Adoption of the Law on Enforcement and Security Proceeding in 2011 was of great significance for the Serbian legal system, partly due to introduced novelties in the course of enforcement proceedings, as an important stage in realization of creditors’ rights, and also for having introduced a new judicial profession hitherto unknown in Serbian law - enforcement officers (in practice referred to as private enforcement officers). After more than three years of application of this law it has been noticed that numerous deficiencies could not be remedied by partial changes, only by the adoption of new law as a whole.

Background

Serbia currently has around 250 exploitation fields where mining activities are undertaken, in addition to around 100 exploration fields where some of the world’s largest mining companies are present. Foreign mining companies invest between $10mil and $100mil on a yearly basis on geological explorations in Serbia.

The Republic of Serbia cannot boast of a speedy and successful transition. Privatization, creating a predictable business environment and forming a stable legal system began with Serbia already lagging significantly behind other countries in the region.

Serbia’s new Energy Law was enacted in December 2014. The principle aim of the new legislation is harmonization with the aquis communautaire and liberalization of the market, ensuring the freedom to conduct business activities and free access to the system for all third parties. The law also imposes an unbundling obligation and prescribes deadlines for harmonization of the operations of the companies active in the energy sector with the new law.

The new Law on Payment Transactions which will come into force on October 1st, 2015, will introduce significant novelties into the payment services market in Serbia, and will supersede the current Law on Payment Operations. Among other matters, it will regulate the use of electronic money, and the new organization of the payment system in the Republic of Serbia.

On May 7th 2015 the National Assembly of the Republic of Serbia passed the Law on Protection of the Right to a Trial within a Reasonable Time (hereinafter: “the Law”). The Law will enter into legal force and be applied starting from January 1st, 2016. The reason for this delay in the Law's coming into force is to give the judges time to prepare for compliance with the Law.

The majority of criminal behaviours are quite universal, but what usually differs, among different jurisdictions, are the punishments and procedures of detection and the processing of the crimes. In that sense, the understanding of white collar crimes (WCC), as a group of specific crimes, is universal.

Expansion of the IT sector in Serbia has lead to an increased engagement of local IT experts by foreign IT companies. In practice so far, four models of engagement of the local experts by the foreign IT companies have surfaced, each of them having its advantages and disadvantages.

On 18 December 2014 the National Assembly of the Republic of Serbia adopted a new Insurance Law ("Official Gazette of RS“, No. 139/2014), continuing the reformative process of improving the market of financial services in Serbia and harmonizing with European Union law, and ensuring the necessary conditions for additional liberalization of the market of insurance services, whereby significant changes were made as compared to the legislative solutions so far:

On January 29th, 2015 all special collective agreements in the Republic of Serbia ceased to exist. According to the latest amendments to the Labour Law that were enacted last year, the provisions of all collective agreements not contrary to the law remained in force for an additional 6 months, but as the 6 months expired on January 29th, 2015, all collective agreements were put out of force.

The public notary system has been introduced into Serbia by the Law on Public Notaries. The legislator's intention – declaratively standard: to lighten the burden on courts and thus increase their efficiency, and to improve legal certainty.

Privatization in Serbia began in 1989 with the major social and economic reforms introduced by Ante Markovic, the last Prime Minister of former Yugoslavia.

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JPM Jankovic Popovic Mitic at a Glance

JPM Jankovic Popovic Mitic is the leading law firm in Serbia, providing full service in Serbia and SEE region. Since 1991, we have been serving national and international clients from various industries in establishing, building and maintaining their business presence in Serbia and SEE. Our expertise, commitment, experience and the highest standard practice has been proven and recognized on the market. Our track record comprises numerous successfully completed landmark transactions in a developing and transitional economy. We are committed to finding solutions and providing flexibility of choice to our clients.

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