Individuals - residents, as well as non-residents (for the income earned on the territory of the Republic of Serbia), are obliged to pay Annual Personal Income Tax, if their annual net income, earned in 2021 exceeds the amount of RSD 3.268.224.

Taxation of income is carried out at progressive rates in such a way that the tax rate of:

  • 10% is applied for taxation of yearly net income amounting from RSD 3.268.224, up to RSD 6.536.448;
  • 15% is applied for taxation of yearly net income in the amount exceeding RSD 6.536.448.

Personal deductions expressed as percentage of the average annual earnings paid to an employee in the Republic of Serbia for the year 2021 amount to:

  • 40% for a taxpayer – RSD 435.763;
  • 15% for a dependent family member – RSD 163.411.

Please note that the total amount of personal deductions cannot exceed 50% of the amount of taxable income.

Starting from the determination of the annual tax for 2021, there is one important novelty for the taxpayers of the annual personal income tax who have less than 40 years of age on the last day of the calendar year for which the tax is determined. For them, the sum of individual items of annual income is reduced by the amount of three average annual salaries per employee paid in Serbia in the year for which the tax is determined. The reduction is made by summing the following items of annual income:

- earnings from Art. 13. to 15v of the Law

- taxable income from self-employment referred to in Article 33, paragraph 2 and Article 40 of the Law

- taxable income from copyright and related rights and industrial property rights from Art. 55 and 60 of the Law

If the amount of three average annual salaries per employee is higher than the sum of the previously mentioned items of the annual income of the taxpayer under the age of 40, the total reduction cannot be more than the sum of the previously mentioned items.

The deadline for submission of tax return for annual personal income tax for the year 2021 is 16 May 2022. Tax return is submitted in electronic form or in writing – directly or via post service.

Please note that for filing an electronic personal income tax return (PPDG-2R form) 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.

The hardcopy tax return is filed with the branch office of the Tax Administration located in the municipality of the taxpayer’s registered address of residence.

Irrespective of how the tax return is filed, the Tax Administration shall issue a hardcopy tax assessment of the amount of personal income tax payable.

The tax shell be paid no later than 15 days from the day of delivery of the decision on determining the Annual Personal Income Tax by the Tax Administration.