[World Tax News] Serbia Publishes Deemed Arm’s Length Interest Rates for Related-party Financing

Editorial Team – [2026] 186 taxmann.com 13 (Article)

World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week:

1. Serbia Publishes Deemed Arm’s Length Interest Rates for Related-party Financing for 2026

On 24 April 2026 (published in Official Gazette No. 36/26), the Serbian Ministry of Finance issued the Rulebook prescribing interest rates in line with the arm’s length principle for 2026 (“TP Rulebook”). This TP Rulebook specifies the applicable interest rates for related-party financing.

As per the new TP Rulebook, there are no major changes in interest rates applicable to banks and financial leasing companies compared to 2025, except for a significant increase in rates for RUB-denominated credits and loans. For other companies, interest rates are marginally lower than in 2025, and the Rulebook does not prescribe rates for short-term USD credits and loans. Set out below is a tabular summary of the interest rates for 2026 considered to be at arm’s length:

Banks & Financial Leasing Companies

• RSD short-term loans – 4.40%
• RSD long-term loans – 0.33%
• EUR/RSD indexed to EUR – 4.87%
• USD/RSD indexed to USD – 4.98%
• CHF/RSD indexed to CHF – 3.05%
• SEK/RSD indexed to SEK – 4.12%
• GBP/RSD indexed to GBP – 1.50%
• RUB/RSD indexed to RUB – 10.73%

Other Companies

• RSD short-term loans – 7.13%
• RSD long-term loans – 7.21%
• Short-term EUR/RSD indexed to EUR – 4.75%
• Long-term EUR/RSD indexed to EUR – 5.42%
• Long-term CHF/RSD indexed to CHF – 7.10%
• Long-term USD/RSD indexed to USD – 4.43%

Source – Official Website

2. Australian Treasury Consulting on Standard Deduction of up to AUD 1,000 for Work-related Expenses

The Australian Treasury has released a consultation on a proposal to amend tax law to introduce a standard deduction of up to $1,000 for Australian tax residents earning income from work, effective from 1 July 2026. Existing provisions will continue to apply to individuals with work-related expenses exceeding $1,000 and to those earning only business or investment income.

The proposal also allows certain deductions in addition to the standard deduction, including investment expenses, charitable donations, and union or professional association membership fees. It further includes measures to prevent double benefits through salary packaging of expenses covered by the instant deduction and updates substantiation and capital allowance rules to support the new framework.

Source – Australian Treasury

3. Amending Protocol to Tax Treaty between Bahrain and Bermuda Signed

The Hon. David Burt, Premier and Minister of Finance, signed a protocol amending the Double Taxation Agreement (DTA) between the Government of Bermuda and the Government of the Kingdom of Bahrain. The protocol was executed on 17 April during the 2026 Spring Meetings of the International Monetary Fund and the World Bank Group in Washington, D.C., alongside His Excellency Shaikh Salman bin Khalifa Al Khalifa.

The amendment updates the original agreement signed in 2010 under the Hon. Paula Cox. Bahrain was the first country with which Bermuda entered into a DTA, marking its longest-standing relationship within the Gulf Cooperation Council (GCC).

The revised protocol aligns the agreement with the OECD/G20 Inclusive Framework on BEPS standards, incorporating provisions to prevent treaty abuse and enhance dispute resolution mechanisms.

Premier Burt stated that Bahrain remains a key partner and gateway for Bermuda’s expanding business presence in the GCC, and the amendment ensures the agreement reflects international standards while supporting growing economic ties between the two jurisdictions.

Source – Government of Bermuda

4. Kazakhstan Mazhilis Approves Pending Tax Treaty With Oman

On April 22, at a plenary session of the Mazhilis in Astana chaired by Yerlan Koshanov, deputies approved in the first reading amendments to the Law “On Local State Administration and Self-Government in the Republic of Kazakhstan” and ratified agreements with Oman and on a unified customs transit system within the EAEU. The draft amendments, developed pursuant to the President’s instructions and presented by co-author Ekaterina Smyshlyaeva, aim to strengthen regional autonomy and enhance the status of local self-government, including by promoting citizen participation in decision-making.

The bill defines and distinguishes between local community assemblies (as self-government bodies) and gatherings (as forms of public participation), clarifies the functioning of territorial councils, and expands the role of maslikhats in oversight, budgeting, and management of municipal assets. It also enhances transparency and accountability through public disclosure of депутат inquiries, mandatory semi-annual reporting to constituents, digitalisation measures such as online broadcasts and publication of documents, and limits on the tenure of maslikhat chairpersons. Further, it strengthens institutional and social guarantees, including provisions on appointments, personnel management, reimbursement of expenses, and compensation upon dissolution, while increasing the financial independence of regions through additional revenue sources.

Following deliberations, the amendments were approved in the first reading, with further review to continue under a working group led by Mukash Iskandirov. The Mazhilis also ratified the Kazakhstan Oman agreement on avoidance of double taxation and prevention of tax evasion, presented by Vice Minister of Finance Yerzhan Birzhanov, aimed at enhancing economic cooperation, investment conditions, and tax transparency. Additionally, it approved and forwarded to the Senate an agreement on a unified customs transit system within the EAEU, and took up for consideration a draft law on an economic partnership agreement with the United Arab Emirates, while submitting 14 parliamentary inquiries on key socio-economic issues.

Source – Mazhilis of the Parliament of the Republic of Kazakhstan

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