Making Dispute Resolution More Effective – Simplified Peer Review, Serbia (Stage 1)

Investment Rating - The report indicates that Serbia meets most elements of the Action 14 Minimum Standard for dispute resolution mechanisms, suggesting a positive investment outlook in this area [22][23]. Core Insights - Serbia has a relatively large tax treaty network with 64 treaties, all of which include provisions for a Mutual Agreement Procedure (MAP) to resolve disputes [22][28]. - The report highlights that Serbia has signed and ratified the Multilateral Instrument, modifying five of its tax treaties to align with the Action 14 Minimum Standard [23][39]. - Serbia's MAP program has shown modest experience in resolving cases, with an average closure time of 6.53 months for cases closed during the reporting period [25][26]. Summary by Sections Tax Treaty Network - Serbia has entered into 64 tax treaties, all in force, which provide for a MAP for resolving disputes [39]. - The tax treaties largely comply with the Action 14 Minimum Standard, with provisions equivalent to Article 25 of the OECD Model Tax Convention [39][46]. MAP Guidance and MAP Profile - Serbia has issued guidance on the governance and administration of the MAP, which is available in both Serbian and English [28]. - The competent authority for MAP in Serbia is the Ministry of Finance, which currently employs one person dedicated to MAP cases [28]. MAP Statistics - During the 2021-22 reporting period, Serbia had a total of 7 MAP cases, with 5 remaining open at the end of the period [30]. - The average time to close cases was 6.53 months, with only one case resolved within the reporting period [26][30]. Practical Application of Action 14 Minimum Standard - Serbia partially meets the Action 14 Minimum Standard, needing to amend eight of its tax treaties to fully comply [23][24]. - The report identifies areas for improvement, including the need for a documented bilateral consultation process for cases where objections are deemed unjustified [24][25].