Workforce Payments Guide Serbia

Last updated: Jan 14, 2024

Currency
Serbian Dinar (RSD)
Payroll Frequency
Monthly
Capital
Belgrade
Fiscal Year
1 January - 31 December
Employer Taxes
16.65%
Employee Costs
19.9%
Central Bank
National Bank of Serbia (NBS)
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3rd Party Payments

Authority  Payment Frequency  Due Date  Payment Method 
Tax Administration  Monthly  15th day of the following month  Electronic 
Corporate Income Tax (CIT)  Annually  30 June of the following year  Electronic 
Social Security Contributions  Monthly  With salary payment  Electronic 

Payments Coverage

Papaya Global fully supports workforce payment in Serbia.

Contractor Payments

Papaya Global supports payments to contractors in Serbia. The payout currency may vary depending on the receiver bank account setup when receiving foreign currencies. It is advised for contractors to reach out to their bank to confirm how foreign currencies are handled.

Payroll Frequency

Monthly

IBAN

IBAN Example Serbia

RS43949620720371784928

IBAN in print

RS43 9496 2072 0371 7849 28

Country Code RS
Digit Code 43
Bank code 949
Account Number 6207203717849
National check digit 28

KYC

The KYC process in Serbia begins with a customer’s first interaction during the onboarding process. The primary source of identification is the Identity Card issued by the General Police Directorate – Ministry of Interior, which is verified by Shufti Pro. Serbian passports issued by the Ministry of Interior and driving licenses issued by the Auto-moto Association of Serbia (AMSS) are also authenticated for KYC purposes.

In addition to the identification process, customer due diligence (CDD) is performed by screening the customer against government watchlists and looking into their past transactions, credit history, geographic location, etc.

For non-resident bank accounts, the KYC process involves personally initiating the procedure in the bank for natural persons, or through legal representatives for legal entities. The bank examines the clients’ registration and ownership documentation. A company will need to present a newly issued registry act, i.e., the extract from the official business registry, and reveal its Ultimate Beneficial Owner (UBO).

If due diligence finds a customer to be a risk for money laundering, terrorism funding, or other serious financial crimes, further due diligence, known as enhanced due diligence (EDD), may be in order. Ongoing monitoring of the customer’s activities is also an integral part of the KYC process. AML services are provided for Serbian banks and businesses to identify high-risk clients, including PEP screening and real-time sanction list monitoring.

Technological tools like automation, machine learning, AI, and facial recognition system are increasingly used to streamline the KYC process, detect risk factors and for real-time remote authentication. Address Verification is used to guard against false deliveries and invalid customer locations.

Frictionless customer onboarding is achieved through 2 factor-authentication, with accurate verification of end-users through their mobile phones. Biometric consent is used to verify customers and their transactions in real-time, along with Selfie Verification and a Unique Message such as a printed or handwritten document.

Banking Regulations

In Serbia, cross-border transactions are regulated by the Law on Foreign Exchange Operations. Non-residents may perform payment and collection for the purpose of buying and selling long-term debt and equity securities in Serbia in accordance with the law governing the capital market.

The National Bank of Serbia (NBS) is the central bank of Serbia and is independent and subject to the supervision of the National Assembly to which it accounts for its work. The NBS is entitled to propose to the National Assembly laws within its scope of competence.

In terms of EU regulations, Regulation 518/2019 amends Regulation 924/2009 as regards charges on cross-border payments in the Union and currency conversion charges. This regulation applies to charges levied by payment service providers (PSPs) in respect of cross-border payments in euros. These must be the same as charges levied by the PSP for “corresponding national payments of the same value”.

There is no set definition of a “corresponding national payment” and PSPs will therefore need to consider which payment transactions ‘correspond’ in their nature to the cross-border EU payment based on the value of the transaction and other characteristics.

Opening a bank account

To open a company bank account in Serbia, the following requirements must be met:

1. Provide company documents such as the Articles of Association and Certificate of Incorporation.

2. Decision on registration in the Business Register Agency (BRA).

3. Tax Identification Number (PIB).

4. Specimen signature.

5. Copies of ID cards/passports of individuals authorized to represent the company.

6. Statement of account holders.

7. Provide specific documentation to comply with regulatory and anti-money laundering (AML) requirements. They must be accurate, up-to-date, and in line with the bank’s requirements.

8. Schedule a meeting with the chosen bank’s representative to present your documents, discuss your company’s financial needs, and address any questions the bank may have.

9. Choose the right type of business account that aligns with your company’s operations and financial goals.

10. Ensure ongoing compliance with the bank’s terms, regulations, and any changes in the legal framework after successfully opening a bank account.

11. The company must have a Serbian resident who can sign related documents if the company turnover exceeds 65,000 EUR per year, until the company owner obtains a permanent residence permit.

12. You need to be readily available if the bank administration wants to contact you especially about the first several transactions.

The presence of the Director isn’t required as the bank account can be opened via power of attorney. The company doesn’t have to form a local entity or have a local director in order to open and manage its bank account. Depending on the ownership structure, additional documentation may be requested by the bank. Depending on the company’s headquarters’ country, certification of documentation may be required.

International Banks

Major foreign banks operating in Serbia include:

  • Banca Intesa a.d. Beograd, which is a part of the Intesa Sanpaolo Group from Italy.
  • OTP Banka Srbija a.d. Beograd, which is a part of the OTP Group from Hungary.
  • Unicredit Bank Srbija a.d. Beograd, which is a member of UniCredit Group, originated from Italy.
  • NLB Komercijalna banka a.d. Beograd, which is a part of NLB Bank Group from Slovenia.
  • Raiffeisen banka a.d. Beograd, which is a part of the Raiffeisen Banking Group from Austria.
  • Addiko Bank a.d. Beograd
  • Bank of China Srbija a.d. Beograd-Novi Beograd
  • Erste Bank a.d. Novi Sad
  • Eurobank Direktna a.d. Beograd
  • Expobank a.d. Beograd
  • HALKBANK a.d. Beograd
  • ProCredit Bank a.d. Beograd

Major Local Banks

The major local banks operating in Serbia include:

  • 3 Banka a.d. Novi Sad
  • Addiko Bank a.d. Beograd
  • Agroindustrijsko komercijalna banka AIK banka a.d. Beograd
  • ALTA banka a.d. Beograd
  • API Bank a.d. Beograd
  • Banca Intesa a.d. Beograd
  • Banka Poštanska štedionica a.d. Beograd
  • Erste Bank a.d. Novi Sad
  • Eurobank Direktna a.d. Beograd
  • Expobank a.d. Beograd
  • HALKBANK a.d. Beograd
  • Mobi Banka a.d. Belgrade
  • NLB Komercijalna banka a.d. Beograd
  • OTP Banka Srbija a.d. Beograd
  • ProCredit Bank a.d. Beograd
  • Raiffeisen banka a.d. Beograd
  • Srpska banka a.d. Beograd
  • Unicredit Bank Srbija a.d. Beograd
  • Cacanska Banka
  • Credy Banka ad
  • Findomestic Banka Beograd
  • JUBMES Banka a.d.
  • Komercijalna Banka a.d. Beograd
  • Meridian Bank a.d. Novi
  • Metals-Banka AD Novi Sad
  • National Bank of Serbia
  • Opportunity Bank Novi Sad
  • PB Agrobanka ad Beograd
  • Postal Savings Bank
  • Societe Generale Srbija
  • Univerzal Bank ad Belgrade
  • Vojvodanska banka a.d.

Payment Tools

The B2C payment tools available in Serbia include:

  • Credit and debit cards
  • E-wallets
  • Vouchers
  • Instant bank transfer
  • Mobile solutions
  • Credorax’s NextGen Smart Acquiring & Payment Processing technology
  • Barclaycard Smartpay
  • 2Checkout
  • Pay with Xumm (XRPL)
  • PayPal Checkout
  • Plisio for accepting payments in cryptocurrencies
  • Card payments via POS terminals
  • Mobile phone payments
  • Real time instant payments
  • QR payments
  • Scan[2]Pay QR code mobile payments service

Cryptocurrency

In Serbia, it is generally prohibited to use cryptocurrencies as a means of payment, including for paying employees. Legal entities and entrepreneurs are required to operate through bank accounts in dinars, the local currency. Transactions related to cryptocurrencies must be in accordance with laws regulating payment services when disbursed in the local currency, or in line with the Serbian foreign exchange regulations if in foreign currencies.

Additionally, services related to digital assets can only be provided by a licensed digital assets service provider. Although the possibility of paying parts of employees’ wages in digital assets is recognized by law, it is not directly possible to pay employees entirely with cryptocurrencies. Regulations related to this are governed by the Law on Digital Assets and the Law on Personal Income Tax.

Also, any profits made from dealing with cryptocurrencies are subject to tax according to the law governing corporate income tax. However, the National Bank of Serbia does not issue licenses for cryptocurrency trading and individuals and companies engaging in any activity relating to virtual currencies do so at their own risk. They must also strictly observe the Law on the Prevention of Money Laundering and potential future legislation.

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