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 2022 exceeds the amount of RSD 3.719.376.

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 3.719.376, up to RSD 7.438.752;
  • 15% is applied for taxation of yearly net income in the amount exceeding RSD 7.438.752.

Personal deductions expressed as percentage of the average annual earnings paid to an employee in the Republic of Serbia for the year 2022 amount to:

  • 40% for a taxpayer – RSD 495.917;
  • 15% for a dependent family member – RSD 185.969.

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.  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 2022 is 15 May 2023. 

The procedure for submitting a tax return consists of the following steps:

  • No later than April 1 of the year following the year for which the annual tax is determined (e.g. by April 1, 2023 for the annual tax for 2022), the tax authority fills out the tax return and uploads it electronically to the Tax Administration portal, which makes it available to a individual – a taxpayer of the annual personal income tax;
  • The individual has the obligation to amend / supplement the tax return in the part in which the correct data is not shown or the data is not available to the tax authority (eg data on dependent family members and the amount of personal deductions for dependent family members);
  • A individual submits a tax return in electronic form, through the portal of the Tax Administration, no later than May 15 of the year following the year for which the annual tax is determined and pays the determined amount of tax;
  • This step exists only if a individual does not submit a tax return within the prescribed period - then the tax authority submits a tax return for that person.

The tax is paid no later than the deadline for submitting the tax return, i.e. by May 15.

The annual personal income tax will be determined by self-taxation, and the tax return will be submitted exclusively in electronic form.

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