The REVERA team assisted a non-resident company in obtaining a tax clearance certificate required to transfer funds from its account with a Serbian bank to an account abroad.
The certificate was required under the Serbian Foreign Exchange Operations Act. Non-resident companies holding non-resident accounts in Serbia must obtain such a certificate before transferring funds as part of intra-group transactions.
Although the company did not have a Serbian tax identification number and did not conduct any business activities in Serbia, the Serbian Tax Administration was prepared to issue the certificate only if the company provided evidence that the funds to be transferred had no connection with Serbia.
The client managed the account remotely through online banking. However, a tax clearance certificate is issued exclusively in hard copy, and the procedure for obtaining it requires direct interaction with the tax authority.
The team therefore had to establish not only that the funds to be transferred had no connection with Serbia, but also to arrange the entire process without requiring the client’s representative to travel to the country.
Before commencing the procedure, REVERA’s lawyers analysed the source of the funds and the bank statements, identified the required set of documents, arranged for the power of attorney to be duly certified, and prepared Serbian translations of the supporting documents.
Acting under the power of attorney, the REVERA team submitted the application to the Serbian Tax Administration and assisted throughout its review. During the procedure, the lawyers promptly provided additional explanations in response to the tax inspector’s requests.
As a result, the entire process was handled remotely, without requiring the client’s representative to travel to Serbia.
The client obtained the tax clearance certificate and was able to transfer the funds to an account abroad immediately, without travelling to Serbia in person.
This project demonstrates the importance of advance preparation when transferring funds from a non-resident account with a Serbian bank. Analysing the source of the funds and compiling the required supporting documents before submitting the application can expedite the procedure and help avoid delays in making the transfer.
The REVERA team has the experience required to provide comprehensive support with such procedures, including analysing the applicable requirements, preparing the documents, and liaising with the Serbian Tax Administration on the client’s behalf.
The experts who advised on the project were Bogić Sekulović and Maryna Matsiuk.
If a company is planning to transfer funds from a non-resident account with a Serbian bank, it is advisable to determine the applicable requirements and the necessary set of documents in advance.
The REVERA team is ready to assist with preparing for the procedure and handling the application before the tax authority.
