Tax Alert, October 2018

Rulebook on recognized expenditures for investments in the field of culture

Minister of Culture and Information has adopted Rulebook on investments in the field of culture recognized as expenditure (hereinafter: “Rulebook”), related to application of Corporate Income Tax Law.

The Rulebook comes into force eight days after being published in the Official Gazette of the Republic of Serbia, whereupon the previously applicable Rulebook on recognized expenses for investments in the field of culture (“Official Gazette RS”, no., 9/02) ceases to apply.

Compared to the previously applicable solution, the new Rulebook provides a modernized legal framework for the matter at hand, specifically through updated activity codes for the entities – recipients of the investments and by expanding the list of admissible investments including investments through the use of information and communication technologies.

For all matters related to the application of the Rulebook and the determination of admissible expenses, feel free to contact our colleagues from the Tax & Legal department.


Investments recognized as expenditure for tax balance purposes

Investments in the field of culture are recognized as expenditure if they contribute to:

1)  creating of conditions for performing and developing cultural activities;

2)  discovering, collecting, researching, documenting, studying, evaluating, protecting, preserving, presenting, interpreting, using and managing cultural goods;

3)  encouraging international cultural activities and cooperation;

4)  encouraging education in the field of culture;

5)  encouraging scientific research in the field of culture;

6)  encouraging young talents in the field of cultural and artistic work;

7)  application of information and communication technology (digital guides, upgraded and virtual reality, 3D animations etc.), generic services, unique software solutions aiming to present cultural heritage and contemporary art and to make it accessible to the general public;

8)  encouraging amateur and artistic cultural creativity;

9)  encouraging children’s creativity and creativity for children and young people in culture;

10)  encouraging cultural and artistic creativity of persons with disabilities and the accessibility of all cultural content of persons with disabilities;

11)  encouraging development of creative industries;

12)  encouraging cultural and artistic development of socially sensitive groups.

Abovementioned investments in the field of culture are recognized as expenditures if the investment is made in cultural institutions, artistic associations, faculties, academies, art schools and other domestic legal entities, registered under the following subgroups of activities, in accordance with Decree on Classification of Activities (Official Gazette of RS, no. 54/10):

1)  protection and maintenance of immoveable cultural heritage, cultural and historical sites, buildings and similar touristic monuments (91.03);

2)  the activity of libraries and archives (91.01);

3)  the activity of museums, galleries and anthologies (91.02);

4)  artistic creativity (90.03)

5)  production of cinematography, audio-visual and television programmes (59.11);

6)  recording and publishing soundtracks and music (59.20);

7)  publishing book, magazines and other publishing activities (58.1);

8)  activities related to botanical and zoo gardens and other natural reserves (91.04).

Investments in the field of culture, made in cultural institutions, artistic associations, faculties, academies, art schools and other domestic legal entities registered for abovementioned activities, are recognised as expenditure if these were invested in reconstruction of the existing or construction of new cultural facilities, conservation and restoration of cultural heritage, as well as preservation of elements of intangible cultural heritage inscribed in National register of intangible cultural heritage, programme activities, production and equipment used in cultural and artistic activities.

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