focus sul mercato serbo, verona 12 dicembre, 2014

JELENA CORSOVICFOCUS SUL MERCATO SERBO

12-12-14

12 / 12 / 14FOCUS SUL MERCATO SERBO

In January 2014 Serbia started the EU membership negotiations.

Back in 2008 Serbia was foreseen to make the largest improvement in the business environment in the region of Eastern Europe between 2009 and 2013. It is an on-going process and the country is set to pass a package of as many as 20 reform laws by end-2014.

In 2011, Serbia was the leader in CEE in attracting FDI with € 2.2 billion of inbound investments.

Starting a business in Serbia provides for an opportunity for customs-free export to a market of 1 billion people.

Serbia is the only country outside of the Commonwealth of Independent States that enjoys a free trade agreement with Russia, but also with Turkey, EFTA, Belarus and Kazakhstan. It is also a member of the CEFTA with 29 million people and one of the biggest markets in the region.

Serbia's labor force offers a unique combination of high quality, wide availability and cost effectiveness.

SERBIAN MARKET OVERVIEW:

PRESENTAZIONE XXX ARGOMENTO YYY 3

FINANCIAL INCENTIVES

The amount of funds which can be awarded to large enterprises is determined up to 50% of the eligible costs for the implementation of the investment project.

The amount of funds may be increased by up to 20 percentage points for small-sized companies and up to 10 percentage points for medium-sized companies.

Serbia`s favorable business environment features:- highly competitive tax rates - and low operating costs.

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TAX RATES IN SERBIA

20%

20%Copyright, property, profits from gambling and other types of incomeAnnual income tax 10/15%

Corporate profit taxTaxes on dividents, shares in profits, royalties, interest and capital gains

15%

10%15%

Salary tax and income from self-employmentCapital incomes and capital gains

Social Security Contributions

Personal income taxes

For legal entities

Pension and disability insurance -14%Health insurance - 5.5%Unemployment insurance - 0.75%

TAX RATES:

Value Added Tax (VAT) Standard rate 20%Reduced rate 10%


Serbia can serve as a manufacturing hub for duty-free exports to a market of 1 billion people that includes the European Union, the Russian Federation, Kazakhstan, Belarus, Turkey, South -East (CEFTA),EFTA

Upon the completion of negotiations with Egypt, the territory with duty-free

access for Serbian products will expand by an additional 77 million people.

LIBERALIZED TRADE

1.083.259.142Total Market Size

Generalized system of preferences

CEFTAEFTATurkey

Free Trade AgreementFree Trade AgreementFree Trade Agreement

29.990.54213.000.00075.000.000

Preferential Trade Regime 494.070,000EU

USARussia, Belarus, and Kazakhstan Free Trade Agreement 168.640.600

302.558.000

Serbia's Preferential Trade AgreementsMarket Trade regime Number of inhabitants


Exports to the European Union market are free-of-customs according to the Stabilization and Association Agreement.

For several food products (baby beef, sugar, and wine) export

quantities are limited by annual quotas.

Imports from the E.U. are pursued based on the Interim Trade Agreement, as part of the Stabilization and Association Agreement, providing for progressive abolishment of import customs duties for industrial and certain agricultural products from E.U. countries by 2014.

Exports to and from EU


Since 2000. Serbia has attracted more than €22.4 billion of inward foreign direct investment.

A list of leading foreign investors that have already invested consists of: FIAT, Telenor, Microsoft, Coca-Cola, Delhaize, Michelin, Gazprom, Bosch, Siemens, Banca Intesa Sanpaolo, UniCredit and many others

FDI BY COUNTRIES

Currently leading spot on the country list is held by Netherlands, followed by Austria, Greece, Norway and Luxembourg, while major investor countries also include Germany, Italy, Slovenia, and the Russian Federation. (USA usually invests through its European affiliates)

FDI BY INDUSTRIES

Service sectors have proven to be the most attractive to international investors. Banking and insurance recorded the largest FDI inflow of €5 billion. Manufacturing industries € 4.8 billion, followed by wholesale, retail and repair of motor vehicles and real estate activities.

FDI facts and figures


Serbian Chamber of Commerce announced that in 2014 the positive trends of the cooperation beetwen the two countries continued

Trade volume increased by 15% compared to the same period last year

Export structure is dominated by the finished vehicles (almost half of the entire export to Italian market), finishing jobs in the garment and footwear industry, nonferrous metals…

Italian import is characterized by: parts and components for the automotive industry, raw materials for the garment and footwear industry, household appliances

In financial sector Italian banks hold up to 25% of the banking market and in insurance Asicurazioni Generali took over Delta Insurance company while DDOR Novi Sad became the part of Fondiaria Group (almost 50% of Serbian insurance market)

SERBO ITALIAN COOPERATION OVERVIEW:


PRIVATIZATION PROCESS IN SERBIA AND ITALIAN COMPANIES:

So far in the Privatization process the Italian firms invested in:

• Bitumen Adige -- Kijevo Strazevica

• Piero Zanella – Zlatibor Mermer (the first privatizations by the foreign buyers)

• Alcalinea – Gradjevinar Kraljevo

• SFIR Vicenza -- Sugar factory in Senta and Nova Crnja

• Zanini – Hemofarm – Bertele – Lamp East (pharmaceutical industry)

• Fantoni – Spik Ivanjica

• Fibeks – Ateks (textile industry)

• Benetton – Niteks

• Goldoni – 21. maj fabrika Beograd


PRIVATIZATION PROCESS IN SERBIA AND ITALIAN COMPANIES:

Italian Goverment approved as an incentive for private sector in Serbia a credit line for purchase of italian equipment in ammount of 33,5 million of EUR for SME’s back in 2005 (all the resources were entirely deployed)

The second credit line in the almost the same amount was approved in February 2008 and it is beeing used since March 20012 (apart the SME’s priority will also be on infrastructure projects, ecology and comunal services)

According to the report by the Serbian Agency for Privatization in September 2014 there were no privatization purchases. Call for privatization of 502 companies in the process of restructuring received 1732 offers for 403 companies, while 99 of them remained without an offer. According to first estimates there are serious offers for 50-60 companies. The greatest interest attracted agro-food sector companies such are Agricultural Corporation ‘Beograd’ and Agro-Industrial Conglomerate ’Becej’

focus sul mercato serbo, verona 12 dicembre, 2014

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