Signature of Double Taxation Convention between Ireland and Serbia
In Belgrade on 23rd September 2009, Mr Antóin MacUnfraidh, Ambassador to the Republic of Serbia on behalf of the Government of Ireland and Mr Vuk Djokovic, State Secretary, Ministry of Finance, on behalf of the Government of the Republic of Serbia signed a Double Taxation Convention between Ireland and the Republic of Serbia.
Negotiations for a Convention with Serbia took place in Dublin in December 2007 and again in Belgrade in December 2008.
The Convention is comprehensive in scope and generally follows the OECD Model Convention. It applies to taxes on income and gains imposed by both States.
The main purpose of the Convention is to avoid the taxation in both countries of the same income or gains. This is achieved by allocating exclusive taxing rights to one or other country, or where both countries retain taxing rights, by requiring the country of residence of the taxpayer to grant credit for the tax paid in the other country.
In the case of dividends, and royalty payments, reduced rates of withholding tax are provided for in the Convention. In the case of interest payments the Convention provides for either an exemption or a reduction from withholding tax on these payments.
Other important Articles in the Convention include the non-discrimination provisions, which protect nationals of each country from discriminatory tax provisions in the other and also the exchange of information provisions, which are necessary to counter tax evasion.
The Convention is expected to have a positive impact on trade and investment between Ireland and Serbia. Serbia is an emerging economy anxious to promote investment and economic development. The reductions and exemptions in withholding taxes and other fiscal benefits conferred in the Convention will significantly assist future Irish Business and investment in Serbia.
If, as expected, the provisions for ratifying the Convention are completed by both countries in 2010 it will enter into effect from 2011.
Ireland has currently 46 Double Taxation Treaties in effect with several others in the pipeline.
Convention between Ireland and the Republic of Serbia (PDF, 90KB)
[Ends 28/09/2009]