ANNUAL PERSONAL INCOME TAX FOR THE YEAR 2022
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 2022 exceeds the amount of RSD 3,719,376..
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 3,719,376, up to RSD 7,438,752;
- 15% is applied for taxation of yearly net income in the amount exceeding RSD 7,438,752.
Taxpayers who are younger than 40 on 31st December 2022 have the right to additional deduction of taxable income in the amount of RSD 3,719,376 (non-taxable amount). Additional deduction relates to three types of taxable income:
- taxable income from entrepreneurial activity; and
- taxable income from copyrights and related rights and industrial property rights.
Additional deduction is not related to the following types of income:
- taxable income from immovable property;
- taxable income from lease of movable properties;
- taxable income of athletes and sports experts;
- taxable income from hospitality services;
- other taxable income;
- income of residents realized and taxed in another state.
Personal deductions expressed as percentage of the average annual earnings paid to an employee in the Republic of Serbia for the year 2022 amount to:
- 40% for a taxpayer – RSD 495,917;
- 15% for a dependent family member – RSD 185.969.
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 deadline for submission of tax return for annual personal income tax for the year 2022 is 15 May 2023. Tax return is submitted only in electronic form via the Tax Administration portal.
Note: It is stipulated that the competent tax authority will establish tax returns based on data from official records. Such returns will be posted on the Tax Administration portal no later than 1 April, 2023.
Taxpayers are obliged to amend or supplement a tax return if necessary and submit it electronically via the Tax Administration portal.
If the taxpayer does not submit the tax return within the legal deadline, the Tax Administration will submit the tax return on his behalf. Penalty interest will be calculated from the moment of submitting the tax return by Tax Administration.