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 2020 exceeds the amount of RSD 2.987.424.

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 2.987.424, up to RSD 5.974.848;
  • 15% is applied for taxation of yearly net income in the amount exceeding RSD 5.974.848.

Personal deductions expressed as percentage of the average annual earnings paid to an employee in the Republic of Serbia for the year 2020 amount to:

  • 40% for a taxpayer – RSD 398.323;
  • 15% for a dependent family member – RSD 149.371.

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

The deadline for submission of tax return for annual personal income tax for the year 2020 is 15 May 2021. 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.

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.

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.