ANNUAL INDIVIDUAL INCOME TAX
The expenses of its sovereign power are covered by the state from its own economic activities, relying on the economic strength of the individuals or by taking part of legal entities profit. Taxes are always a painful contribution to the state, as it does not provide any compensation or service for tax collection from natural and legal persons.
One in a series of tax deadlines concerning individuals in 2021 is May 17, which is the last day for submitting the annual individual income tax declaration for 2020. This requirement is determined by Articles 87 to 89a of the Individual Income Tax Law.
The limit above which residents of the Republic of Serbia and non-residents pay the annual individual income tax (revenue) for 2020 is 2,987,424.- RSD.
Who are the tax payers of AIIT:
- residents on the income (revenue) earned in Serbia and abroad
- non-residents on the income (revenue) earned in Serbia
What are the types of taxable income (revenue):
- Self-employment (entrepreneurs)
- Copyrights, rights related to copyrights and industrial property rights
- Revenues from leasing chattels and real estate
- Other Revenues given in the Article 85 of the Individual Income Tax Law
(employment contracts, temporary and occasional services, extra work, commercial representation etc.)
Dividends are not included in the base for calculating the annual individual income tax.
How to calculate the annual individual income tax
By collecting all your income from various sources and reducing it by payed amounts of taxes and contributions, if the income amount is less than 2,987,424 dinars, you are not a payer of tax and contributions. But if the amount of your income is higher than the amount of 2,987,424 RSD, then you are liable to pay the annual individual income tax.
The income determined in this way is reduced by personal deductions and for dependent family members
– for personal deductions 398,323 RSD
– for dependent family members 149,371 RSD
Therefore: the tax base is the difference between the annual sum of income minus taxes and contributions and the non-taxable amount, minus personal deductions.
AIIT tax scale:
– 10% for taxable income (revenue) up to the amount of 5,974,848 RSD
– 15% for taxable income (revenue) above 5,974,848 RSD
The deadline for submission is 17 May 2021, and it must be filled in on the Tax Report Form PPDG-2R in electronic form, via the e-Taxes portal (ePorezi).
The data needed for the calculation can be found on your PPP-PO report that you received from your employer for all taxes and contributions deducted and paid by your employer to the state on your behalf.
You can submit the declaration by yourself or you can hire an accountant to submit this report on your behalf.
After the tax report submission, the Tax Administration will check the data and make a decision on the amount of the annual individual income tax that you need to pay within 15 days from the day of receiving the decision.
In case of non-submission, untimely submission of the tax declaration, the liability is divided into misdemeanour and criminal liability.