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  • Tax Highlights - March 2021
Article:

Tax Highlights - March 2021

01 March 2021

ANNUAL PERSONAL INCOME TAX FOR THE YEAR 2020

 

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.

If a taxpayer makes an investment in an alternative investment fund, i.e. in the purchase of an investment unit of an alternative investment fund, he/she is entitled to a tax credit on account of annual personal income tax up to 50% of the investment made in the calendar year for which the annual personal income tax is determined.

The tax credit can be used starting from the annual personal income tax for 2021.

The deadline for submission of tax return for annual personal income tax for the year 2020 is 17 May 2021. Tax return is submitted in electronic form or in writing – directly or via post service.