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Cryptocurrency Regulation Takes Center Stage in Serbia

BELGRADE, SERBIA - In a move aimed at fostering growth and innovation in the cryptocurrency space, the Serbian government has introduced new regulations governing the use of digital currencies in the country.

Taxation

As of July 1st, 2021, Serbia’s tax law has been amended to specifically address cryptocurrency transactions. The changes are expected to provide clarity for individuals and businesses looking to enter the market.

  • VATs: Transferring cryptocurrency into cash is exempt from VAT burdens. The Ministry of Finance has confirmed that cryptocurrencies are classified as commodities rather than money or currency.
  • Corporate Income Taxes: Corporations facilitating cryptocurrency transactions will be subject to a 15% capital gains tax. However, companies can take advantage of a tax exemption for 50% of their realized capital gains if the profits are reinvested into Serbian legal entities or investment funds.
  • Personal Income Taxes: Individuals will pay a 15% tax on their capital gains. The acquisition value is generally documented as the price paid, and individuals may also utilize a tax exemption for 50% of their realized capital gains if the profits are reinvested into Serbian legal entities or investment funds.
  • Property Taxes: Individuals who inherit cryptocurrency or receive it as a gift will be subject to a property tax rate of 2.5%.

Global Insights

The regulation of cryptocurrencies remains a topic of debate globally, with many countries still grappling with how to address the issue.

According to Freeman Law’s Cryptocurrency Law Resource page, most jurisdictions have yet to enact laws governing cryptocurrencies, leaving the legality of crypto mining unclear in many cases.

However, Serbia’s move is seen as a positive step towards establishing a clear regulatory framework for cryptocurrency transactions.

Freeman Law Insights

If you have questions about cryptocurrency, digital currencies, or blockchain technology, Freeman Law can help. Our team of experts provides digital currency tax planning and compliance services. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your concerns.

Works Cited

  • International legal business solutions - Global Legal Insights. (2021). GLI - Global Legal Insights International Legal Business Solutions.
  • Welcome to Serbia, The Taxation of Cryptocurrency - Serbia 2021. (2021, March 31). Welcome to Serbia.