The contribution of Serbia and Montenegro appears separately in the different sections of the Observatory. On one hand are Serbia legal provisions on social protection, taxes, and a list of Serbian vocational schools and, on the other, the Montenegro laws on social insurance, taxes, cultural heritage.The Directory of Organizations of the Obervatory contains a comprehensive list of organizations working in the cultural field in Serbia and Montenegro.  

Republic of Montenegro

Legal framework in the field of culture
Territory of the culture in Republic of Montenegro is regulate in a way which are some kind of formation (creation) and culture heritage brought special (particular) laws or acts Lex specialis:

1. Statute of archives activity  1992/94.
2. Statute of librarian activity 197/89.
3. Statute of cinematography  1993.
4. Statute of museurn activity  1977/89.
5. Statute of theatre activity  2001.
6. Statute of independent artists 1984/85.
7. Statute of publishing  1995.
8. Statute of State Awards  1996.
9. Statute of protection monuments of the culture  1991
10. Statute of restoration and renovation of old cities which
were destroyed in a earthquake in April 15th 1979   1984/86.
11. Statute of restoration monumental territory- Kotor  1991.
12. Statute of monuments, memorial characteristic historical
 adventures and persons 1971/72/88.
13. Statute of non-governmental organizations  1999/02.
14. Statute of copyright and relative justice   1998.
(Federal regulation).

Social insurance - working relations

In Montenegro Republic artists which are not in working relation, can realize health and pension insurance if they recognize characteristics independent artists for the time dependence on height (altitude) annual income Republic is reconciling total (whole) or partial (incomplete) contributes for previous status.
Specifics on the occasion of establish working relation is provide for the statue of theatre activity, where is provide for theatrical artists to involvement in theatres only on a definite time 4 years long.
In Republic of Montenegro are signed general and particular collective contracts for the activity of culture and this acts are strengthen all rights and obligations which are comes from working relation. The people who signature and agreement are branched of syndicate for the field of culture, economic council of Montenegro and Government of Montenegro.

Tax system
Exemption from taxes:

1.Customs law (statue)
- Artists for the goods (merchandise), which they get for their own activity from abroad.
- On their own deeds which artists take from abroad

2.Law of incomes (taxes for the profit)
- NVO (non-government) to 4.000 Euro

3.Law of taxes for additional values.
- Realized are payment copyright and favors from the literature and art.
- Books and other publications of the interest for art and culture of Republic.
- Gifts to the museums, libraries and other cultural institutions.

Source: Ministry of Culture of the Republic of Montenegro, august 2003.

Republic of Serbia

Main legal provision in the cultural field

The first task of Serbian Government since 2000 was to create the rule of law in all fields. That meant re-creation of all most important state legislative documents starting with Constitution. It would bc improper to start with specific concrete laws in cultural filed without basic legal framework which defines territorial organization of the country, property issues, process of privatization, taxation etc, etc. That was the reason that many laws relevant for culture are now in process of drafting while more general state laws are already passing Parliamentary procedures.

The culture in this moment is still regulated according to the laws from previous period, among others: Law on public interest in culture and Heritage protection law. But Ministry of culture has been very active in influencing new laws and acts in which position of culture has beeil protected or secured: for instance: tax?free stimulation for investments in culture in the Law on the profits of legal entities and tax incentive for book in the Taxation law.

1 The law on general interest in culture; - 1992
2 The heritage protection law; 1994
3.The copyright law; 1998
4 The law on cinematography; 1991, amendments 1994
5 The publishing law; 1991; amendments 1994
6 The library law; 1994
7 The Foundation and fund law; 1998
8.The free-lance artists and cultural workers, 1993; amendments 1998

Legal status of the artist
The legal status of artists bas been defined only in the free- lance artist and cultural workers

Cultural heritage protection
The law on cultural heritage protection from 1994 defines public services in this field. A number of special decrees and regulation further prescribe rules about mechanisms to conduct inventories to valorize, categorize cultural heritage as well as responsibilities of archives, museums, film archives and libraries.
Cultural heritage protection is one of the top priorities of the Ministry of culture and public information because it represents national tradition and identity of all peoples and cultures in Serbia.

The substance and system of protection is regulated by the Cultural Properties Law the current one dating from 1994, while the new law is still in there process of being enacted.
 
According to the Cultural Properties Law, the activities carried out by the protection institutions consist of: research, recording properties which claim preliminary protection, valorization, proposing and determine cultural properties, categorization, maintaining registers and the Central Register, preparing studies, proposals and projects, providing owners ad users with expert assistance in preserving and maintaining cultural properties, proposing and overseeing how technical protective measures are carried out, publishing the results of cultural property protection activities, and participating in the preparation of urban and territorial plans.
The Ministry of culture initiated drafting of the Archives Law, which currently does not exist, which is to stipulate new legal framework for their activities according to European standards.
The Ministry of culture is working on drafting the new Library Law which is to classify and reorganize libraries networks according to UNESCO standards and makes necessary legal conditions for the improvement of their activities, especially in view of the tact of e?publishing, digitalization and networking.

Social security - Labor relations
In Serbia artists in performing arts are fully employed. The new theatre law envisage introduction of the new model in which the artists will bc engaged on the contractual base.For free-lance artists the law stipulates social security and retirement funds pald by municipalities.
Collective bargaining agreements exist in the fields of theater, archives, museums, libraries and institutes for heritage protection and special section of the trade unions are bargaining, enforcing and monitoring these agreements.

Fiscal status and tax system  
Serbian law on the profits of legal entities:

Legal entities may deduct 1,5% of their income in one fiscal year for all donations for culture

The Income Tax Law allows deduction for incomes of private individuals spent on cultural activities
Artists are allowed of tax deduction from 40 to 65% of their earnings on behalf of their expenses related to their production (without documentation).

Gifts to the museums, librarles and other cultural institutions are exempt from taxation.

The tax rate on net income resulting from intellectual property rights is 20%. The Income Tax Law (RS OG No. 24/2001) in the Article 55 provides the list the following percentage of income resulting from intellectual property rights as tax deductible, depending of activity:
- sculpture, tapestry, art ceramics, mosaic and stained glass - 65 per cent of income is regarded as expense, and tax deductible
- art photography, fresco painting and similar arts, clothes design and textile design - 55 per cent of income is regarded as expense, and tax deductible
- painting, graphie design, industrial design, visual communications, landscaping, restorations, translations - 50 per cent of income is regarded as expense, and tax deductible
- music performance, movie making - 45 per cent of income is regarded as expense, and tax deductible
- show prograins and performance of folk music - 10 per cent of income is regarded as expense, and tax deductible
- all other activities - 40 per cent of income is regarded as expense, and tax deductible

The tax rate on capital gains (e.g. the net gain from the sale or other transfer of an intellectual property right) is 20%

Legal incentive for public - private initiatives
 The fact that Law on the profits of legal entities gives right for deduction of 1,5% of their income in one fiscal year for all donations for culture - is not really considered as incentive in practice. The old fashioned incentives had disappeared (matching funds - corporation - state / "dinar na dinar"), and new ones had not been created.

Source: Ministry of Culture and Public Information of the Republic of Serbia, august 2003.