The Serbian Ministry of Finance has published the market interest rates applicable to loans between related parties for the 2025 tax year. These rates, determined according to the arm’s length principle, are essential to ensure the correct application of transfer pricing regulations in the country.
Interest rates for 2025
Interest rates are set for banks and leasing companies and for non-financial or commercial entities:
- Banks and leasing companies.
Example: 4.59% for EUR loans and 3.92% for short-term RSD loans.
- Non-financial or commercial entities. These vary according to the currency and term of the loan.
Example: 8.01% on short-term RSD loans and 6.79% on long-term EUR loans.
These rates serve as a reference for companies when establishing financing conditions between related entities, ensuring that transactions reflect market values and comply with Serbian tax regulations.
Importance for companies
It is essential that companies operating in Serbia review and, if necessary, adjust the terms of their intercompany loans in accordance with the new rates established for 2025. Failure to comply with these guidelines may result in tax adjustments and penalties from the tax authorities.
Conclusion
Keeping up to date with Transfer Pricing regulations is essential for multinational companies. At TPC Group, we have a team of experts who can advise you on the correct application of these rates and on compliance with tax regulations in Serbia and other countries. Contact us today to ensure the compliance of your intercompany financial operations.
Source: Eurofast