Annual personal income tax

What is the annual personal income tax?
The annual personal income tax is tax on the income of natural persons (residents and non-residents) who 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.
The non-taxable amount for 2022 has been published and amounts to RSD 3,719,376 dinars.
Therefore, if a natural person had a total income of more than 3,719,376 dinars during 2022, he/she is considered as the anual taxpayer.
Taxable income – what incomes constitute taxable income?
The calculation includes earnings and taxable income from: self-employment, copyright and related rights and industrial property rights, real estate, leasing of movable property, income of athletes and sports experts and from the provision of catering services and other taxable income.
Which incomes should not be included in the calculation?
Incomes from capital (interest based on loans, savings and other deposits (term or demand), as well as interest based on debt or similar securities…), income from capital gains, real estate rights, shares in the capital of legal entities, investment units…), profits from games of chance and Income from personal insurance.
Tax basis (tax reductions):
The taxable base is a remainder between taxable income and personal deductions, which amount to:
1) for the taxpayer – 40% of the average annual salary per employee paid in the Republic (for 2022, the personal deduction amounts to RSD 495,917);
2) for a dependent family member – 15% of the average annual salary per employee – for the year 2022 per dependent member – at RSD 185,969).
For taxpayers who are less than 40 years old on the last day of 2022, tax basis may be additionally reduced by the amount of three average annual wages per employee paid in the Republic in the year for which the tax is determined.
Tax rate
Taxable income up to RSD 7,438,752 is taxed at a rate of 10%, while taxable income above this amount is taxed at a rate of 15%.
How is the tax return submitted and by when?
The annual income tax of citizens is determined exclusively by SELF-TAXATION and that the tax return is submitted exclusively IN ELECTRONIC FORM. The Tax Administration should, by April 1, 2023, based on the data at its disposal, enter a proposal for a completed tax administrative form and upload it as a working version (“in preparation” status) on the ePorezi portal.
The taxpayer is obliged to review and make changes/amendments to that tax administrative form if data are not accurately shown and then submit the tax return in electronic form through the Tax Administration portal. The most common example of supplementary data entry refers to the number of dependent members of the taxpayer’s household, as an input element for calculating the annual personal income tax. Since the Tax Administration does not have this information, the taxpayer must enter this information.
The applicant is obliged to electronically sign the tax administrative form PP-GPDG in accordance with the Law regulating electronic signature. The application is submitted by starting the “Sign and submit” action.
PP-GPDG form is considered submitted when the Tax Administration confirms the formal and mathematical accuracy of the data, assigns a return number, an approval number for the payment of the annual personal income tax (hereinafter: tax liability) and delivers a notification to the tax return submitter in electronic form.
Determining and paying the annual personal income tax
By May 15, 2023 at the latest, check the data in the pre-filled tax return and independently make any corrections if they do not agree with the data shown in their pre-filled tax return.
The annual personal income tax payment deadline
Personal income tax is paid no later than the deadline for submitting the tax return, i.e. no later than May 15, 2023, when it comes to the annual personal income tax for the year 2022, to the payment account and with a reference to the number indicated in the Notice that the Tax Administration will deliver to the taxpayer, electronically, after submitting the correct tax returns.