Data on average annual salary in Serbia for 2021 has been published and amounts to RSD 1,089,408. The data is used to determine applicable annual income tax thresholds for 2021.
2021 annual income tax liability in Serbia exists for following individuals:
- Serbian residents, for their worldwide income generated in 2021; and
- non-residents, for their income generated in Serbia in 2021.
provided that such generated income exceeds total net amount of RSD 3,268,224.
The income subject to annual income tax is income generated by an individual from salary, self-employment, copyright and rights related to copyright, industrial property rights, lease of immovable and movable property, hospitality income, income of athletes and sports professionals as well as other income in accordance with Article 85 of the Personal Income Tax Law.
Total net income of an individual generated in calendar 2021 is taxable progressively as follows:
- taxable income generated up to RSD 3,268,224– non-taxable.
- taxable income generated up to RSD 6,536,448 – subject to 10% tax rate.
- taxable income exceeding RSD 6,536,448 – subject to 15% tax rate.
The annual taxable base for 2021 may be reduced by the following personal deductions (but cannot reduce taxable income for more than 50%):
- reduction for a taxpayer: RSD 435,763.
- reduction for each dependent family member of a taxpayer: RSD 163,411.
A novelty was introduced for taxpayers who have less than 40 years of age on the last day of the calendar year for which the annual personal income tax is determined, by which sum of annual income is further reduced by three average annual salaries per employee paid in the Republic in which is determined by the tax, i.e. by RSD 3,268,224.
The deadline for submission of annual income tax return for 2021 is Monday 16 May 2022. The return may be submitted electronically or in paper form directly/via post office to the Tax Authority office according to residence of the payer, on PPDG-2R form.
The annual income tax is paid according to the decision of the Tax Authority.