Serbia: Changes to taxation of individual (personal) income
Changes to the taxation of individual income effective 1 January 2023
Changes to the taxation of individual income effective 1 January 2023
The KPMG member firm in Serbia prepared a report summarizing changes to the taxation of individual (personal) income effective 1 January 2023.
- The annual individual (personal) income tax return (PPDG 2R form) can only be submitted online as of 1 January 2023.
- In order to file electronically, an individual (or someone authorized to act on the individual’s behalf) must possess a qualified electronic certificate for accessing the tax authority’s portal “E-Porezi.”
- The tax authority will no longer issue a tax assessment as of 1 January 2023—the annual individual (personal) income tax liability on income generated in 2022 is determined and paid through self-assessment.
- The deadline for submission of the annual individual (personal) income tax return and payment of tax on income earned in 2022 is 15 May 2023.
- Individuals whose total net income in 2022 exceeds RSD 3,719,376 (non-taxable amount) are required to file the annual individual (personal) income tax return.
- Taxpayers less than 40 years old on 31 December 2022 can reduce net income from employment, self-employment, copyright and related rights and industrial property rights by RSD 3,719,376.
- Personal deductions of RSD 495,917 for the taxpayer and RSD 185,969 for each dependent family member are allowed, but the total amount of personal deductions cannot be higher than 50% of taxable income.
- Income up to RSD 7,438,752 is subject to tax at a rate of 10%, and income above that is subject to tax at a 15% rate.
Read a February 2023 report [PDF 272 KB] prepared by the KPMG member firm in Serbia
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