Non-taxable income for individuals in 2019 – RSD 2,729,304
The non-taxable amount of complementary annual income tax in 2019 is RSD 2.729.304, so all natural persons who have earned income above this amount are required to file a tax return for the complementary annual income tax. Individuals subject to annual tax are residents of Serbia for income earned in the country and abroad, as well as non-residents of Serbia for income earned in the country.
Personal deductions are amounts that are deducted from taxable income:
for the taxpayer – 40% of the average annual salary (for 2019 the amount is 363.907 RSD)
for a dependent family member – 15% of the average annual salary (for 2019 the amount is 136.465 RSD).
The amount of personal deductions may not exceed 50% of taxable income. Only one taxpayer can use a deduction for each dependent family member (e.g. if both parents are taxpayers).
Taxable income represents the difference between the income earned and the non-taxable amount. The basis for annual tax is taxable income, which is the difference between taxable income and personal deductions.
Annual income tax is payable on taxable income at the rate of:
10% for taxable income up to RSD 5,458,608 (six times average annual earnings)
15% for the amount above RSD 5,458,608
Dividend is not subject to complementary annual income tax.