Shaping the Future: Perspectives on European Economies

Abstract

Although they have existed in European economies for more than a hundred years, double taxation treaties have not been the subject of academic attention for a long time. However, in parallel with the globalization of business, contracts have seen a significant expansion over the last three decades. These agreements can encourage foreign direct investment,   but,   on the   other   hand,   can facilitate the   relocation of profits   to tax havens in order to avoid income taxes. Therefore, when applying the contract, it is necessary to consider all the advantages and disadvantages of the contract. The aim of the paper is to examine the bilateral agreements applied by Serbia, as and the potential for improving the contract network. The research showed that Serbia implements agreements with a large number of countries (more than 60), although they are primarily European countries. It was noted that Serbia also applies agreements with most of the largest global investors, as well as with most of the largest foreign investors in Serbia. The paper identifies countries with which the agreement is expected to be implemented in the near future, as well as countries with which Serbia should negotiate the avoidance of double taxation. In addition, it was noted that Serbia is implementing agreements with some countries, which can be treated as potential tax havens. Therefore, certain recommendations were made to the managers of companies (primarily multinational companies) and the competent state authorities