Annual personal income tax


By establishing the tax system, the state provides the funds necessary for the efficient, timely and high-quality performance of its basic tasks and functions. In case the taxpayer avoids or is late to pay the tax, they would face the penalty prescribed by law. Therefore, we would like to remind you that the deadline for filing your annual personal income tax return is approaching.

Individuals who generated annual income in 2022 which exceeds 3,719,376 dinars (non-taxable amount) are obliged to submit an annual tax return PPDG-2r.

Serbian residents are obliged to report their income earned abroad too.

Non-residents of the Republic of Serbia who have acquired the status of tax resident on one of two grounds:

1) have a place of residence or business headquarters/interests on the territory of the Republic, or

2) stays on the territory of the Republic, continuously or intermittently, for 183 or more days in a period of 12 months starting or ending in the relevant tax year
report income earned on the Serbian territory.

The determined personal deductions are in the following amounts:

– for the taxpayer: 495,917 dinars
– for each dependent family member: 185,969 dinars

The total amount of personal deductions cannot exceed 50% of taxable income.

The annual tax is calculated at a progressive rate:

– 10% – for the amount of taxable income up to 7,438,752 dinars
– 15% – on the difference between the amount that is greater than 7,438,752 dinars.

Annual personal income taxpayers who are under 40 years of age on the last day of the 2022calendar year are entitled to an additional reduction in the amount of 3,719,376 dinars, which represents three average annual salaries per employee, which were paid in Serbia in the year for which the tax is determined.

The deadline for submitting the tax return is May 15, 2023.

Please note that as of January 1 this year, the tax return is submitted exclusively in electronic form on the Serbian Tax Administration’s website.

If the taxpayer does not submit the tax return before the legal deadline, the Tax Administration will submit the return ex officio on his behalf. From the moment the tax return is submitted, interest for untimely payment of the tax liability begins to accrue.

As tax is one of FinExpertiza’s primary fields of expertise, we help our clients from getting themselves into an awkward situation. Namely, FinExperts will assist you by providing their tax consulting services, which include timely responses to all tax inquiries, tax analyses, advice for tax optimization, achieving tax savings and continuous monitoring of circumstances and changes, in order to reduce the risks of new taxes and fines being imposed by tax inspectors.
If you need help preparing relevant documentation, calculating taxes and submitting your tax return for the annual personal income tax, contact FinExperts.

The deadline for submitting the tax return is May 15, 2023.