Annual Personal Income Tax for 2018

11. March 2019 | Reading Time: 2 Min

Data on average annual salary in Serbia for 2018 has been published on 26 February 2019 and amounts to RSD 823,548. The data is used to determine applicable annual income tax thresholds for 2018.

 2018 annual income tax liability in Serbia exists for following individuals:

  • Serbian residents, for their worldwide income generated in 2018; and
  • non-residents, for their income generated in Serbia in 2018;

provided that such generated income exceeds total net amount of RSD 2,470,644.

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 2018 is taxable progressively as follows:

  • taxable income generated up to RSD 2,470,644 – non-taxable;
  • taxable income generated up to RSD 4,941,288 – subject to 10% tax rate;
  • taxable income exceeding RSD 4,941,288 – subject to 15% tax rate.

The annual taxable base for 2018 may be reduced by the following personal deductions (but cannot reduce taxable income for more than 50%):

  • reduction for a taxpayer: RSD 329,419;
  • reduction for each dependent family member of a taxpayer: RSD 123,532.

The deadline for submission of annual income tax return for 2018 is 15 May 2019. 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 personal income tax is payable upon assessment issued by the Tax Authority.