Tax residents in Serbia report their world-wide income, while persons who are not residents in Serbia report their income earned on the territory of Serbia.
Individuals whose total personal net income in 2023 exceeds RSD 4,269,564 (non-taxable amount) are required to file the annual personal income tax return.
Decrease of personal net income for taxpayers younger than 40 years
For taxpayers required to file the annual personal income tax return, who are younger than 40 years of age on the last day of the calendar year 2023, personal net income from employment, self-employment, copyright and related rights and industrial property rights can be reduced for additional amount of RSD 4,269,564 (three average annual salaries per employee paid in Serbia in the taxable year).
The total personal net income earned in calendar 2023 and the non-taxable amount are reported in the tax return, where the difference represents taxable income.
Taxable income is decreased for prescribed personal deductions. The remaining amount represents income for taxation to which the prescribed tax rates are applied.
Personal deductions are set in the following amounts:
· for the taxpayer: RSD 569,275
· for each dependent family member: RSD 213,478
The total amount of personal deductions cannot be higher than 50% of taxable income.
Alternative investment fund:
· A taxpayer who invests in an alternative investment fund is granted the right to a tax credit for annual tax purposes of up to 50% of the investment made in the calendar year for which the annual personal income tax is determined.
· The tax credit cannot exceed 50% of determined annual tax liability.
Below is a summary of tax rates and income for taxation amounts to which they apply:
Description |
Amount of income for taxation in RSD |
|---|---|
Income for taxation at a rate of 10% |
up to 8,539,128 |
Income for taxation at a rate of 15% |
from 8,539,129 |
How to file the annual personal income tax return?
As of 1 January 2023, the annual personal income tax return (PPDG 2R form) can only be submitted online, via Tax Authorities’ system.
Please note that for filing an electronic personal income tax return an individual must possess a qualified electronic certificate for accessing the Tax Administration’s portal “E-Porezi” or should authorize someone to do so on individual’s behalf using the PEP form.
Tax liability and tax payment
The annual personal income tax return (PP GPDG form) can only be submitted online, via Tax Authorities’ system.
Please note that for filing an electronic personal income tax return an individual must possess a qualified electronic certificate for accessing the Tax Administration’s portal “E-Porezi” or should authorize someone to do so on individual’s behalf using the PEP form.
Approximate estimate of annual income tax
The annual personal income tax liability on income generated in 2023 is determined and paid through self-assessment.:
The amount of annual tax obligation is equal to the amount stated in the submitted (PP GPDG) tax return.
The deadline for submission of the annual personal income the tax return and payment of annual tax, based on the income earned in 2023, is 15 May 2024.
Should you wish to estimate the approximate amount of your annual income tax, without personal deductions, below are provided tax brackets:
Total personal net income earned in 2022 |
Annual tax obligations For taxpayers who are below 40 years old |
Annual tax obligations For taxpayers who are above 40 years old |
Tax rate |
Up to 4,269,564 (non-taxable amount) |
Non taxable |
Non taxable |
0% |
From 4,269,565 up to 8,539,128 |
Non taxable |
Taxable |
10% |
From 8,539,129 up to 12,808,692 |
Taxable |
Taxable |
10% |
From 12,808,693 up to 17,078,256 |
Taxable |
Taxable |
10% for taxpayers who are below 40 years 15% for taxpayers who are above 40 years |
From 17,078,257 |
Taxable |
Taxable |
15% |
Should you need assistance in preparing and filing your personal income tax return or if you are interested in having a presentation given to your employees, do not hesitate to contact us.
If you have any questions or you need assistance of our professionals, please contact us at tax@kpmg.rs
For previous editions of KPMG Tax Alerts please visit the following web page:
KPMG Tax & Legal Department
KPMG d.o.o. Beograd
Milutina Milankovića 1J
11 070 Belgrade, Serbia
T: +381 11 20 50 500
F: +381 11 20 50 550
tax@kpmg.rs
