2018 Non-taxable threshold for annual income tax purposes
Based on the published data in Official Gazette no. 13/2019 from February 28th2019 regarding average annual salary per employee paid out in 2018 in the Republic of Serbia, the non-taxable threshold relevant for determining 2018 annual personal income tax filing liability is set at RSD 2,470,644. Annual income taxpayers for 2018 are natural persons, both tax residents (for income earned on the territory of the Republic of Serbia and income earned in other countries) and tax non-residents (for the income earned on the territory of the Republic of Serbia) whose annual net income for 2018 exceeded the afore-mentioned threshold.
The income of a natural person – a resident of the Republic of Serbia who has been realized and taxed in another state shall be reduced by the tax paid in that other State.
In the event that contributions for compulsory social security in the year 2018 are paid from a base exceeding the amount of the highest annual contribution base of 3,951,855 dinars, the taxpayer is entitled to a refund of the paid amount of contribution in accordance with the Law on contributions for compulsory social security.
If the taxpayer has realized a taxable income in the amount of:
- up to 4.941.288 dinars- tax rate applicable is 10%
- above 4.941.288 dinars – tax rate applicable is 10% on the amount up to 4.941.288 dinars and tax rate of 15% on the amount above 4.941.288 dinars.
Non–taxable amount, taxable amounts and personal deductions relevant for 2018 annual income tax are presented in the table below:
|Description||Amount in RSD|
|Income taxable at 10%||4,941,288|
|Income taxable at 15%||Above 4,941,288|
|Personal deduction for a taxpayer*||329,419|
|Deduction for a dependent family member*||123,532|
* Total amount of deductions cannot exceed 50% of income to be taxed