Data on average annual salary in Serbia for 2022 has been published and amounts to RSD 1,239,792. The data is used to determine applicable annual income tax thresholds for 2022.
2022 annual income tax liability in Serbia exists for following individuals:
- Serbian residents, for their worldwide income generated in 2022; and
- non-residents, for their income generated in Serbia in 2022.
provided that such generated income exceeds total net amount of RSD 3,719,376.
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 2022 is taxable progressively as follows:
- taxable income generated up to RSD 3,719,376 non-taxable.
- taxable income generated up to RSD 7,438,752 – subject to 10% tax rate.
- taxable income exceeding RSD 7,438,752 – subject to 15% tax rate.
The annual taxable base for 2022 may be reduced by the following personal deductions (but cannot reduce taxable income for more than 50%):
- reduction for a taxpayer: RSD 495,917.
- reduction for each dependent family member of a taxpayer: RSD 185,969.
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, 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 3,719,376.
From 2023 taxpayers are obligated to calculate and pay tax based on self-assessment and not based on a decision issued by the Tax Authority as before. The tax return is submitted exclusively electronically.
The deadline for the annual income tax return and payment of annual income tax is May 15th, 2023.