Serbia

A legal entity is considered to be a resident of Serbia if it is established or has its place of effective management and control in Serbia.

Permanent establishment (PE)

A PE is any permanent place of business through which a non-resident conducts its business, especially a:

• branch
• plant
• representative office
• place of production, factory, or workshop, or

• mine, oil or gas well, quarry, or any other place of extraction of natural

A PE includes a permanent or mobile construction site, construction, or assembly works, if they last longer than six months, namely: 

• one or several construction or mounting projects executed concurrently or 
• several constructions or assemblies that are performed without interruption one after the other.

If a person, while representing a non-resident taxpayer, has the authority to conclude contracts on behalf of that taxpayer and exercises such authority, it shall be deemed that the non-resident taxpayer has a PE with regard to the operations performed by the representative on behalf of the taxpayer.

A PE shall not exist if the non-resident taxpayer conducts its business through a commissioner, broker, or any other person that, in the conduct of its own business, acts in its own name but for the others account.

Neither shall the following make up a PE:

• Keeping stocks of goods or materials belonging to a non-resident taxpayer exclusively for purposes relating to storage, presentation, or delivery, or using premises intended for such purposes exclusively.
• Keeping stocks of goods or materials belonging to a non-resident taxpayer exclusively for the purpose of their being processed in another enterprise or by a sole trader.
• Keeping a permanent place of business exclusively for the purpose of procuring goods or collecting information for the needs of a non-resident taxpayer or for the purpose of engaging in any other activity of preparatory or auxiliary for the needs of a non-resident taxpayer.