Annual Personal Income Tax in Serbia: Key Information for 2025
In Serbia, the annual personal income tax applies to individuals whose total income during the calendar year exceeds three times the average annual salary per employee. Essentially, this is an additional tax paid once a year, covering all individuals with above-average income, while those earning below this threshold are exempt. The taxable income threshold is updated annually according to official salary statistics.
For 2025, the tax threshold is 5,439,096 RSD, equivalent to three times the average annual salary (1,813,032 x 3). Individuals earning less than this amount are not required to pay the annual tax.
Who must pay the tax?
Taxpayers include residents of Serbia, who are taxed on income earned both domestically and abroad, and non-residents, who are taxed on income earned within Serbia.
Which incomes are taxed?
The annual tax base includes income from various sources: wages, self-employment, royalties and related rights, income from real estate and movable property, athletes’ and specialists’ earnings, hospitality services, and other taxable income.
It is important to note that dividends and profit shares received by founders are excluded from the tax base and do not increase the annual taxable income.
Entrepreneurs paying the flat-rate tax are taxed based on their earnings. If they have no other income, they may not be liable for the annual tax, as flat-rate income often falls below the threshold. However, if they have additional income (e.g., employment elsewhere or rental income), they are responsible for the annual personal income tax.
How is the tax base calculated?
Individuals sum all income from various sources and deduct the non-taxable amount of 5,439,096 RSD. The remaining amount is taxed progressively: 10% up to 10,878,192 RSD and 15% for income exceeding this limit.
Taxpayers may apply personal deductions: 725,213 RSD for themselves and 271,955 RSD per dependent. The total deduction cannot exceed 50% of the taxable income.
Additional reduction for those under 40
Since 2021, individuals under 40 are entitled to additional tax relief. The tax base is reduced by three average annual salaries (5,439,096 RSD) and applies only to wages, self-employment income, and income from copyrights. This relief is available to those who have not reached 40 by December 31, 2025.
Filing and payment deadlines
The tax authority prepares the 2025 tax return and uploads it to the ePorezi portal by April 1, 2026. Taxpayers have until May 15, 2026 to review the return, correct any errors, pay the calculated tax, and submit the return.
Necessary data for tax calculation is contained in PPP-PO reports, which employers must provide by January 31, 2026. The new system is based on official records of all individual incomes, allowing automatic posting of returns for taxpayers.
What is needed to file the tax return?
For self-filing, an electronic certificate is required, along with PPP-PO reports and personal documents of dependents for deductions.
The return may also be submitted by a tax representative with a qualified electronic certificate or power of attorney for using the tax authority’s e-services.
The Creative Finance team is available to answer questions and assist with preparation and submission on behalf of clients.
