Taxation of seafarers’ income earned in 2025
As of 1 January 2025, a revised tax regime applies in Serbia to the income of seafarers working on ships and other vessels flying a foreign flag. The new rules concern individuals engaged as crew members or auxiliary staff and introduce a different approach to determining tax liabilities.
Self-Assessment as the Core Principle
Taxes and, where applicable, health insurance contributions are determined through self-assessment and calculated on an annual basis, for one calendar year. This means that seafarers are required to file their own tax returns and determine their tax obligations in accordance with the applicable regulations.
Key Factors for Tax Calculation
Unlike traditional taxation based on actual income received, the new model relies on the following criteria:
- the total number of days spent working on ships and vessels during the year;
- the type of work performed during the engagement.
These elements are primarily evidenced by the seafarer’s record book, as well as by other documents issued by the competent authorities in accordance with maritime navigation regulations.
Tax Exemptions and Liabilities
One of the most important aspects of the new system is the 174-day threshold within a calendar year:
- seafarers who have worked more than 174 days are fully exempt from income tax;
- if the engagement lasted 174 days or less, the income is subject to tax as other income at a rate of 10%.
Determination of the Tax Base
For seafarers who do not qualify for the exemption, the tax base does not depend on the amount of actual income earned. Instead, it is determined based on the type of work performed, with daily income values predefined by a specific by-law.
This by-law is issued by the minister responsible for transport, taking into account internationally accepted standards in the maritime industry.
