Tax residents in Serbia are liable to pay Serbian tax on their worldwide income. Non tax residents in Serbia are liable to pay tax on their Serbian-source income only.
Individuals will be regarded as tax residents:
- if they stay permanently in Serbia,
- if they have their habitual place of abode in Serbia, i.e. if they stay in the country for at least 183 days in a 12 month period that begins or ends in the relevant tax year,
- if they are sent abroad for the purpose of working for an individual or legal entity that is a resident of the Republic, or an international organisation,
- if their centre of vital interests is located in Serbia.
Married persons are taxed separately and there is no group taxation of a family unit.
Most recent amendments of the tax law and practices in Serbia
The amendments to the Personal Income Tax (PIT) Law, adopted in July 2014, introduced reduction of tax rates for certain types of income. The amendments also explain the equal annual PIT thresholds for Serbian tax residents and Serbian tax non-residents and provide clarification on certain issues.
Note that the salary tax rate remains 10%.
With the latest changes, applicable as of January 2018, the non-taxable amount for salary tax increased from 11,790 Serbian dinars (RSD) to RSD 15,000.