Residents of Republic of Serbia and non-residents, who generated income in Republic of Serbia larger than 2.987.424,00 dinars during 2020 are obliged to pay annual personal income tax for 2020.
Citizens who generated income below this amount have no obligations related to this tax.
Who pays annual personal income tax?
This tax must be paid by:
- residents – for income generated in Serbia and abroad
- non-residents – for income generated (only) in Serbia
Which type of income counts?
Not all income is taxable. You should sum your income originated from:
- business activity as entrepreneur
- copyright and industrial property right
- real estate income
- rents and leasing
- professional sport and
- other income
This sum should be reduced for the amount of tax and social contributions already paid through the 2020.
Dividends and not on the list, meaning they are exempt from this tax. No matter how large dividends you collected last year from your company, they won’t be taxed with this duty.
How to calculate annual income tax?
You should sum all your taxable income from different sources, reduce tax and contributions in the way it is defined by Law and subtract 2.987.424 dinars.
You can further use you personal benefits to reduce it:
- up to 398.323 dinars for you
- up to 149.371 dinars for financially dependent members of your family
The result is your taxable income – the tax basis.
Further you should apply:
10% tax rate, for the taxable income up to 5.974.848 dinars
15% tax rate, for taxable income larger than 5.974.848 dinars
Deadline for tax report submission and payment
Tax report form PPDG-2R should be submitted by 17th of May 2021 in electronic form, via ePorezi platform.
You can find data needed for calculation in your PPP-PO report, a piece of paper you received from your employer in January 2021 and your entrepreneur tax report if you were an entrepreneur in 2020.
Once you submit your tax report, Tax Authority will check the data and issue tax calculation with payment instructions. You should pay your tax within 15 days.
What do you need in order to submit report?
If you want to submit your tax report on your own, you need electronic signature issued by authorized bodies in Serbia (Chamber of Commerce, Post Office of Republic of Serbia, Halcom, Police of Republic of Serbia). You will use it to identify yourself and access Tax Authority platform ePorezi. Additionally, you need PPP-PO report and personal documents for your family members, if you are deducting tax basis based on them.
You can also authorize an accountant to submit this report for you.