Serbia: Changes to individual income tax and social security contributions

Amendments effective 1 January 2023

Social security contributions

The Serbian Parliament on 9 December 2022 adopted the following amendments—effective 1 January 2023—to the individual (personal) income tax law and the law on mandatory social security contributions:

  • The rate for pension and disability insurance contributions on behalf of the employer is decreased from 11% to 10%.
  • The non-taxable amount for salary tax calculation is increased to RSD 21,712 (from current RSD 19,300).
  • The deadline for exercising the right to refund of salary tax paid for newly employed persons is extended to 31 December 2023.
  • New models for taxation of income from services fees on which tax is paid via self-assessment taxation (so-called “freelancers”) are introduced.
  • Mandatory social security contributions on income from service contract fee are introduced.
  • Starting with income generated in 2022, annual individual (personal) income tax will be reported and paid via self-assessment taxation, instead of via the tax authority’s assessment.
  • The deadline for submitting a request for lump sum taxation of entrepreneurial income, and opting for a salary payout taxation model of entrepreneurial income, is extended until 31 December of the following year (instead of within five days from the registration with the tax authority).

Read a December 2022 report [PDF 691 KB] prepared by the KPMG member firm in Serbia

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