Tax Highlights - February 2019-2
14 February 2019
ANNUAL PERSONAL INCOME TAX FOR THE YEAR 2018
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 2018 exceeds the amount of RSD 2,470,644.
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 2,470,644, up to RSD 4,941,288;
- 15% is applied for taxation of yearly net income in the amount exceeding RSD 4,941,288.
Personal deductions expressed as percentage of the average annual earnings paid to an employee in the Republic of Serbia for the year 2018 amount to:
- 40% for a taxpayer – RSD 329,419;
- 15% for a dependent family member – RSD 123,532.
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 2018 is 15 May 2019. Tax return is submitted in electronic form or in writing – directly or via post service.