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, libraries 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 following list concerning the percentage of income resulting from intellectual property rights as tax deductible, depending on the activity:
- sculpture, tapestry, art ceramics, mosaic and stained glass - 65% of income is regarded as expense, and tax deductible;
- art photography, fresco painting and similar arts, clothes design and textile design -  55% of income is regarded as expense, and tax deductible;
- painting, graphic design, industrial design, visual communications, landscaping, restorations, translations - 50% of income is regarded as expense, and tax deductible;
- music performance, movie making - 45 % of income is regarded as expense, and tax deductible;
- show programmes and performance of folk music - 10% of income is regarded as expense, and tax deductible;
- all other activities - 40 % 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 an incentive in the practice. The old fashioned incentives had disappeared (matching funds - corporation - state / "dinar na dinar"), and new ones had not been created yet.

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