Serbian Minister of Finance issued the Rulebook on interest rates that are considered to be in line with the arm’s length principle for the year 2023 (the Rulebook), which enters into force on 6 April 2023.
The Rulebook sets the interest rate which are, in most cases, higher for 0.5-1% than those for 2022. There are a couple of exceptions, such as for both long-term and short-term loans in RSD and short term-loans in USD between companies, for which the interest rate are higher for up to 1.6%.
Interest rates may be used by taxpayers to compare agreed interest rates on loans with related parties, for the calculation of corporate income tax for the FY 2023.
Interest rates that are considered to be in accordance with the “arm’s length” principle, prescribed by the Rulebook for 2023 are the following:
1) for banks and financial leasing providers:
(1) 1.48 % on short-term loans in RSD (compared to 0.50% in 2022);
(2) 4.47% on long-term loans in RSD (compared to 2.86% in 2022);
(3) 3.25% on loans in EUR and dinar loans indexed in EUR (compared to 2.75% in 2022);
(4) 4.43% on loans in USD and dinar loans indexed in USD (compared to 3.91% in 2022);
(5) 2.63% on CHF loans and dinar loans indexed to CHF (compared to 2.61% in 2022);
(6) 3.70% on loans in SEK and dinar loans indexed in SEK (compared to 3.96% in 2022);
(7) 1.88% on loans in GBP and dinar loans indexed in GBP (compared to 1.88 % in 2022);
(8) 1.91% on loans in RUB and dinar loans indexed in RUB (compared to 2.31% in 2022); and
(9) 4.01% on loans in CNY and dinar loans indexed in CNY (not provided for 2022).
2) for other companies:
(1) 3.88% on short-term loans in RSD (compared to 3.12% in 2022);
(2) 4.74% on long-term loans in RSD (compared to 3.39% in 2022);
(3) 2.98% on short-term loans in EUR and dinar loans indexed in EUR (compared to 2.25% in 2022);
(4) 3.22% on long-term loans in EUR and dinar loans indexed in EUR (compared to 2.73% in 2022);
(5) 7.84% on long-term loans in CHF and dinar loans indexed in CHF (compared to 6.94% in 2022);
(6) 3.18% on short-term loans in USD and dinar loans indexed in USD (compared to 1.85% in 2022);
(7) 4.28% on long-term loans in USD and dinar loans indexed in USD (compared to 3.54% in 2022).
By Branimir Rajsic, Senior Consultant, Katarina Tomic Senior Associate, Milica Mijatovic Associate, Karanovic & Partners
