Annual Personal Income Tax for 2020

2. March 2021 | Reading Time: 1 Min

Data on average annual salary in Serbia for 2020 has been published on 26 February 2021 and amounts to RSD 995,808. The data is used to determine applicable annual income tax thresholds for 2020.

2020 annual income tax liability in Serbia exists for following individuals:

  • Serbian residents, for their worldwide income generated in 2020; and
  • non-residents, for their income generated in Serbia in 2020.

provided that such generated income exceeds total net amount of RSD 2,987,424.

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 2020 is taxable progressively as follows:

  • taxable income generated up to RSD 2,987,424– non-taxable.
  • taxable income generated up to RSD 5,974,848 – subject to 10% tax rate.
  • taxable income exceeding RSD 5,974,848 – subject to 15% tax rate.

The annual taxable base for 2020 may be reduced by the following personal deductions (but cannot reduce taxable income for more than 50%):

  • reduction for a taxpayer: RSD 398,323.
  • reduction for each dependent family member of a taxpayer: RSD 149,371.

The deadline for submission of annual income tax return for 2020 is Monday 17 May 2021. 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.