Annual Personal Income Tax for 2024
Data on average annual salary in Serbia for 2024 has been published and amounts to RSD 1,624,836. The data is used to determine applicable annual income tax thresholds for 2024.
2024 annual income tax liability in Serbia exists for following individuals:
- Serbian residents, for their worldwide income generated in 2024; and
- non-residents, for their income generated in Serbia in 2024.
provided that such generated income exceeds total net amount of RSD 4,874,508.
The income subject to annual income tax is income generated by an individual from salary, self-employment, copyright and rights related to copyright, industrial property rights, lease of immovable and movable property, hospitality income, income of athletes and sports professionals as well as other income in accordance with Article 85 of the Personal Income Tax Law.
Total net income of an individual generated in calendar 2024 is taxable progressively as follows:
- taxable income generated up to RSD 4,874,508 non-taxable;
- taxable income generated up to RSD 9,749,016 – subject to 10% tax rate;
- taxable income exceeding RSD 9,749,016 – subject to 15% tax rate.
The annual taxable base for 2024 may be reduced by the following personal deductions (but cannot reduce taxable income for more than 50%):
- reduction for a taxpayer: RSD 649,934;
- reduction for each dependent family member of a taxpayer: RSD 243,725.
For taxpayers who are less than 40 years of age on the last day of the calendar year for which the annual personal income tax is determined, the sum of annual income is further reduced by three average annual salaries per employee paid in the Republic in which is determined by the tax, i.e. by RSD 4,874,508.
A taxpayer who makes an investment in an alternative investment fund, or in the purchase of an investment unit of an alternative investment fund, is entitled to a tax credit against their annual personal income tax, up to a maximum of 50% of the investment made in the calendar year for which the annual personal income tax is determined.
Starting from the calculation of the annual personal income tax for the 2024, a condition has been introduced for the loss of the tax exemption related to the annual tax liability based on investments in an alternative investment fund, or the purchase of an investment unit of an alternative investment fund. If the taxpayer sells shares or stakes in the calendar year in which the investment was made and in the following 3 years, the taxpayer will be obligated to notify the competent Tax Administration of the loss of the right to the tax credit within 30 days of the sale and will be required to pay the liability along with interest for the previously claimed tax credit.
The tax return is submitted exclusively electronically.
The deadline for the annual income tax return and payment of annual income tax is May 15th, 2025.
