Individuals whose total net income in 2015 exceeded RSD 2,201,220 are obliged to file annual tax return.
Tax residents of Serbia declare worldwide income, while tax non-residents of Serbia declare income generated on the territory of Serbia.
Tax brackets are presented below:
| Description | Amount in RSD |
|---|---|
| Non-taxable income | up to 2,201,220 |
| Income taxable @ 10% | from 2,201,221 up to 6,603,660 |
| Income taxable @ 15% | from 6,603,661 |
The income for taxation is reduced for the prescribed personal deductions:
- for the taxpayer: RSD 293,496
- for each dependent family member: RSD 110,061 Total amount of personal deductions may not exceed 50% of the amount of taxable income.
Manner of Submission of the Tax Return
The Law on Tax Procedure and Tax Administration prescribes that annual tax returns must be submitted in electronic form. Please note that in order to submit annual tax return (PPDG-2R form) it is necessary to obtain electronic certificate for access to the Tax Authorities’ portal E-Porezi or to authorize another entity via PEP form.
Possibility of Filing Extension
The Law on Tax Procedure and Tax Administration allows a filing extension for returns under the following conditions:
- a written application must be submitted to the Tax Authorities,
- the application must be submitted before the filing deadline, and
- justification for the filing extension must be provided (e.g. illness, absence from the country, accident, major disaster, etc.).
The extension application should be submitted at the place where the tax return is filed. The Tax Authorities should respond within five days from the receipt of the extension application. The deadline may be extended for a maximum of six months.
Should you need assistance in preparing and submitting of your annual income tax return or if you are interested in a presentation on this for your employees, please do not hesitate to contact us.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Tax Alerts
Our regular newsletter provides you with updates on the latest changes of tax and accounting regulations as soon as a new rule is being approved.
