Serbia: new Rulebook on Transfer Pricing

July 30, 2013

On 5 July 2013, the Ministry of Finance enacted the Rulebook on Transfer Pricing and Methods Applied for Determining Prices in Related Party Transactions in Accordance with the Arm’s Length Principle.

The rulebook endorses the positions outlined in the OECD Transfer Pricing Guidelines.

The key features are listed below.

Transfer pricing methods

Contrary to the previous rule, where a comparable uncontrolled price method was the primary one, the rulebook prescribes other methods applicable for transfer pricing analyses according to the OECD Transfer Pricing Guidelines without imposing a hierarchy.

  • The prescribed methods are:
  • Comparable uncontrolled price method
  • Resale price method
  • Transactional net margin method
  • Cost plus method
  • Profit split method

In addition, according to the corporate income tax law, any other method could be used based on the circumstances of a particular case and on condition that the methods prescribed in the rulebook are not applicable.

Transfer pricing documentation

Transfer pricing documentation is an integral part of supporting documentation that is required when submitting the corporate income tax return and should contain:

  • A functional analysis
  • An analysis of the group of related parties
  • A selection of transfer pricing methods

In particular, transfer pricing documentation should include a detailed list of all related parties and the nature of their relation, as well as the activities performed.

The rulebook was published in the Official Gazette No.61 on 12 July 2013 and entered into force on 20 July 2013.


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