March 2025

Introduction

On February 26, 2025, the Republic Institute of Statistics issued a notice which states that average annual salary per employee in the Republic of Serbia paid in 2024 is RSD 1.624.836. Since the non-taxable amount of income, for the purposes of calculating the annual personal income tax, represents three times the amount of the average annual salary per employee paid in the Republic of Serbia for the year for which the annual income tax is calculated, the non-taxable amount for FY24 is RSD 4.874.508.

Annual personal income tax - specific amounts changes

In accordance with Article 87 of the PIT Law (hereinafter: the Law), individual liable for the annual PIT is individual who, in the calendar year, earned an income greater than three times the average annual salary per employee paid in the Republic of Serbia in the year for which the tax is determined, according to the data of the republican authority responsible for statistics, namely:

• residents - income earned on the territory of the Republic and worldwide.
• non-residents - income earned on the territory of the Republic.

Taxpayers who are less than 40 years old are entitled to an additional income reduction for annual PIT taxation, which is equal to the non-taxable amount of the annual PIT, which for FY24 is RSD 4.874.508.

In accordance with Article 88 of the Law, the individual liable for annual PIT has the right to personal deductions, which amount to:

• for the taxpayer - 40% of the average annual salary per employee, which for FY24 amounts to RSD 649.934;
• for a dependent family member - 15% of the average annual salary per employee, per member, which for FY24 amounts to RSD 243.725.

The amount of personal deductions can be a maximum of 50% of taxable income, while the deduction for a certain dependent family member can only be claimed by one taxpayer.

The tax rate for annual PIT is progressive, so the amount of taxable income is significant.

If the taxpayer has earned taxable income in the amount that:

• is not higher than RSD 9.749.016 (the amount of taxable income up to six times the average annual salary) - a tax rate of 10% is applicable;
• is higher than 9.749.016 dinars - a tax rate of 10% is applied to the amount RSD of 9.749.016, and a tax rate of 15% is applicable to the difference between the amount that is greater than RSD 9.749.016 and the stated amount.

Conclusion

In accordance with the above stated information, individuals who in FY24 earned an income of more than RSD 4.874.508 are required to submit a tax return for the annual PIT.

As is already known, the application submission procedure has been changed since 2023, and the Tax authority enters known data stated in official records into the tax return and uploads the tax return to the Tax Administration portal (ePorezi) no later than April 1, 2025. Afterwards, the taxpayer is obliged to make the change, i.e. supplementing the tax return if necessary.

The taxpayer is obliged to submit a tax return on PP GPDG form electronically, through the Tax Administration portal no later than May 15, 2025 for the annual tax for FY24 and pay the determined amount of tax within the same period.