Personal Income Tax
The personal income tax rate is 12% for salaries, while other personal income is predominantly taxed at the rate of 20%.
Personal income tax is payable by individuals on different sources of income generated throughout the calendar year. The taxable income includes salaries, income from agriculture and forestry, income from self-employment, income from royalties and industrial property rights, income from capital, income from real estate and other income.
A taxpayer is a natural person, a resident of Serbia. A resident is a natural person who has a residence or business premises and personal interests in Serbia or spends at least 183 days over a period of 12 months in Serbia. Residents pay personal income tax on income earned both in the country and abroad, while non-residents are taxed with respect to their income generated in Serbia only.
In case of personal income tax on salaries, the person taxed is the employee, but the employer is responsible for calculating and paying personal income tax on behalf of his employees. The taxable base is the gross salary, which includes the net salary and social security contributions.
Annual Income Tax
The annual income is subject to a 10% tax. The annual income tax is levied on the income earned by residents. Such income includes income received in Serbia and income earned worldwide. The annual income tax applies on the income exceeding the amount of 3 times the average annual salary for Serbian citizens. For non-Serbian citizens, the annual income is taxed if exceeding the amount of 5 times average annual salary in Serbia. The tax rate is 10% for the annual income below the amount of 8 times average annual salary, and 15% for the annual income above the amount of 8 times average annual salary.
Property Tax
The rate of the property tax depends on whether the taxpayer maintains business accounts. For taxpayers who maintain business accounts, the rate is 0.40%. For taxpayers who do not maintain business accounts, the rate is progressive and depends on the tax base.
Property tax applies to immovable property where an individual has rights of ownership, usufruct, residence, utilization, time sharing right, a long term lease holding (for a period of longer than one year), and utilization of city, public or other state owned building land with an area of more than 10 acres. In this case, immovable property is considered to be land, residential and commercial buildings, office space, garages, buildings and recreational space.
Individuals or legal entities which hold any of the above mentioned rights on immovable property in Serbia are subject to the property tax.
