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DEI - Serbia: Parliament OKs new investment law



DEI - Serbia: Parliament OKs new investment law

The Serbian parliament approved a new law on investments that was drafted in collaboration with a pool of World Bank experts. The law obliges institutions to support and control investments and harmonise the legal and formal status of foreign investors with that of local ones. Investments are differentiated between those of national importance and local investments by the application of six criteria: number of jobs created, type and size of the investment, impact on the Serbian trade balance, long-term sustainability, added value created and references of the investor. The new law also includes four types of incentives: state aid, tax breaks and extensions, facilitated tariffs and exemption from the obligatory social security system. Another introduction is the creation of a Serbian development agency, which will deal with incentives to direct investment, increased exportation and improved competitiveness.

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