The Ministry of Finance of Serbia has published the market value interest rates applicable to related party loans for the fiscal year 2025. These rates, determined under the Arm’s Lenght Principle, are essential to ensure the correct application of Transfer Pricing regulations in the country.
Interest Rates for 2025
Interest rates are established for banks, leasing companies, and non-financial or commercial entities:
- Banks and Leasing Companies.
Example: 4.59% for loans in EUR and 3.92% for short-term RSD loans.
- Non-financial or Commercial Entities. These vary depending on the currency and term of the loan.
Example: 8.01% for short-term RSD loans and 6.79% for long-term EUR loans.
These rates are a reference for companies when establishing financing conditions among related entities, ensuring that transactions reflect market values and comply with Serbian tax regulations.
Relevance for Companies
Companies operating in Serbia must review and, if necessary, adjust the terms of their intercompany loans according to the new rates set for 2025. Failure to comply with these guidelines may result in tax adjustments and penalties by the tax authorities.
Conclusion
Keeping up to date with Transfer Pricing regulations is essential for multinational companies. At TPC Group, we have an experienced team to advise you on these rates correctly and comply with tax regulations in Serbia and other countries. Contact us today to ensure compliance with your intercompany financial transactions.
Source: Eurofast