Individuals who earned more than 3,268,224 dinars in 2021 are required to file a tax return for the annual personal income tax. Residents of the Republic of Serbia include the income earned in Serbia and other countries, while non-residents include only the income earned in Serbia.

Income for taxation is the difference between the realized income and the non-taxable amount. Personal deductions may be deducted from the amount of taxable income, but the amount of personal deductions may not exceed 50% of taxable income.

Personal deductions are:

  • for the taxpayer – 40% of the average annual salary (435,763 RD);
  • for a dependent family member – 15% of the average annual salary (163,411 RSD).

The tax rates applicable to taxable income are:

  • 10% – for taxable income up to six times the average annual salary: 6,536,448 RSD;
  • 15% – on the difference between the amount exceeding RSD 6,536,448 and that amount.

The deadline for submitting the tax return for the annual personal income tax based on the income earned in 2021 is May 16, 2022. The tax is paid no later than 15 days after the delivery of the decision on determining the annual tax.