Chinese investors in Serbia: Case study Speaker: Ivana Kopilovi , - - PowerPoint PPT Presentation

Speaker:

Ivana Kopilović, Attorney at Law Kopilovic & Kopilovic Law Firm

Chinese investors in Serbia: Case study

The Firm / 本所概况 / Lo Studio

• Kopilovic and Kopilovic is a Belgrade law firm with international focus. We

provide a comprehensive multidisciplinary legal service to a broad range of international and domestic clients on various cross-border legal matters.

• 贝尔格莱德事务所是塞尔维亚及东南欧唯一一所专门为中国投资者提供法律

服务的事务所。近几年来，随着中国”走出去”战略的实施，越来越多中国 企业选择在欧洲投资。我们国际法律团队的专业律师，精通中文、英语、意 大利语等多家语言，能缩小中国和欧洲的文化差异，帮助客户打破语言和文 化障碍。我们承诺为中国企业提供全面及可靠的服务并竭诚维护中国投资者 利益。

• Kopilovic & Kopilovic è uno studio legale con sede a Belgrado. La sua innovazione

sta nell’aver prestato particolare attenzione all’ambiente internazionale. Lo Studio è specializzato nella fornitura di una vasta gamma di servizi legali per la clientela nazionale o estera, in materia di commercio e sulle varie questioni legali di natura transnazionale.

One Belt, One Road “一带一路”

• Vision of the New Silk Road presented in

2013 by the President of the People's Republic of China

• Opportunity to deepen ties in the Balkans

region

• Cooperation

between China and CEE countries, shaped in the 16+1 format

• Future development, especially in the fields
• f infrastructure, energy and agriculture
• Serbia is a bridge to other destinations for

economic cooperation with Europe

• Serbian and Chinese officials signed a total
• f 22 agreements on cooperation

Chinese Investments in Serbia

• Road Infrastructure
• Railway Infrastructure
• Industrial Zones
• Energy

• March 2016 – Eurofiber doo is founded
• October 2016 – refurbishment of premisses for usage
• October 2016 – Import and installment of 25 machines

for the production of covered yarn

• October 2016 – Employment of the first group of

employees and their training

• November 2016 – The factory is officially open
• March 2017 – The first large order of products has been
• rdered by an Italian company
• March 2017 – The production has officially began

Private Chinese investment in Serbia: Eurofiber doo Ćuprija

Two importaint types of subvensions were provided:

• Subventions provided by The National Bureau for

Employment of the Republic of Serbia

• Subventions provided by the Municipality of

Ćuprija

Private Chinese investment in Serbia: Eurofiber doo Ćuprija

• Italy
• Turkey
• Poland
• Russian Federation

Export business plan

Establishment of a legal entity

• Serbian Business Registry Agency
• Centralized registers in a single institution,

tax registration is completed at the same time

• Procedure is completed within three days
• Standardized registration practices - in

accordance with EU guidelines

Opening of an bank account

• Difficulties obtaining information regarding

the legal framework and legislation

• Complicated procedure
• Difficulties with legalization of documents,

especially from P.R. China

• No upfront defined exact list of documents

Tax Rates in the Republic of Serbia

Type of tax obligations Tax rate General corporate income tax rate 15% Witholding tax: fees for services paid to a non-resident Company Services provided by a non-resident Company for services provided or used in the territory of Serbia 20% Services provided by a non-resident Company from jurisdictions with preferential tax regime (“tax heaven”) 25% Capital gains General capital gain 15% When the capital gains are achieved on the territory of the Republic of Serbia by a non- resident Company 20% Value added tax General VAT rate 20% Special VAT rate 10%

Mandatory social contributions for the employees

Gross salary

• ex. 48.473,00 RSD

Net salary - 30.000,00 RSD Total contributions - 18,473.00 RSD

Gross salary

• ex. 82.111,00 RSD

Net salary - 50.000,00 RSD Total contributions - 32.111,00 RSD

Labour Agreements

Gross payment

• ex. 67.140,00 RSD

Net salary - 36.900,00 RSD Total contributions - 30.240,00 RSD

Gross salary

• ex. 89.520,00 RSD

Net salary - 49.200,00 RSD Total contributions - 40.320,00 RSD

Service Agreements

Mandatory social contributions for the employees

Contributions and taxes rates provided by the law are as follows:

• Pension insurance: 14% of gross salary on behalf of employee and 12% on behalf
• f employer (26% in total)
• Health insurance: 5.15% of gross salary on behalf of employee and 5.15% on behalf
• f employer (10.3% in total)
• Unemployment insurance: 0.75% of gross salary on behalf of employee and 0.75%
• n behalf of employer (1.5% in total)
• Salary tax: 10%

NET SALARY OF 45.970,52 RSD AS AN EXAMPLE

• 1. Salary tax: 10% rate

5.210,66 RSD Contributions on behalf of employee:

• 2. Pension insurance: 14 %

8.945,53 RSD

• 3. Health insurance: 5.15%

3.290,68 RSD

• 4. Unemployment insurance: 0.75%

479,22 RSD Total contributions

• n

behalf

• f

employee: 12.715,43 RSD Contributions on behalf of employer:

• 5. Pension insurance: 12 %

7.667,59 RSD

• 6. Health insurance: 5.15%

3.290,68 RSD

• 7. Unemployment insurance: 0.75%

479,22 RSD Total contributions on behalf of employer: 11.437,49 RSD TOTAL SOCIAL CONTRIBUTIONS AND TAXES 29.363,58 RSD Please note that the above sum is borne by the company, although it is divided in two types of contributions,

• n

behalf

• f

employee and

• f

employer. TOTAL GROSS SALARY: 75.334,61 RSD

Thanks for your attention 感谢您的关注 Grazie per la Vostra attenzione