The Convention on Avoidance of Double Taxation between Serbia and Luxembourg was signed on 15 December in Luxembourg by the two ministers of finance, Mr. Pierre Gramegna and Mr. Dušan Vujović.

Conclusion of the Treaty (Tax treaty/Convention) provides for:

- a complete protection of residents of both Serbia and Luxembourg, from the international double taxation;

- stimulation of capital investment by the residents of one Contracting State in the economy of the other Contracting State;

- development of cooperation between the tax authorities of the Republic of Serbia and the Grand Duchy of Luxembourg, which reduces the possibilities for tax evasion by their residents.

Considering all mentioned, it can be concluded generally that application of the treaty provides for the legal precondition for more efficient work and competitiveness of the companies of the Republic of Serbia in the Grand Duchy of Luxembourg, i.e. companies of the Grand Duchy of Luxembourg in the Republic of Serbia, which is a significant contribution to development of bilateral economic and financial cooperation.

Тhe treaty would be effective starting from January 1, 2017.