| Chargeable Income |
Tax Rate |
| On up to six times the average annual earnings | 10% |
| On over six times the average annual earnings | 10% on up to six times the average annual earnings + 15% on the amount exceeding six times the average annual earnings |
The annual individual income tax shall be payable on the base referred to in Article 88 of this Law at the rates above
Annual Individual Income Tax Declaration
Any payer of annual individual income tax shall file
a tax declaration, containing true data,
with the competent tax office for the income
realised in the year for which the tax is levied,
after
the end of that year, but no later than 15 March of
the following year (hereinafter: the annual
declaration).
Self-employment Income Tax Declaration and Tax
Account
Any entrepreneur and payer of tax on revenue from
agriculture and forestry, who keeps
books, shall file with the competent tax office the
tax declaration and tax account containing
accurate data, by 15 March of the next year.
The taxpayers referred to in paragraph 1 of this Article shall file with the competent tax office, together with the tax declaration and fiscal balance sheet, also the financial statements which are to be presented to the competent office in keeping with the regulations dealing with accountancy and audit (balance sheet, statement of income), if they keep double-entry books, and the income statement, if they keep single-entry books, as well as other documents required by the competent office in keeping with the regulations dealing with taxation proceedings and taxation administration.
In the case of an entrepreneur who pays tax on lump sum revenue, the extent of whose business or sales changes substantially or if circumstances affecting the right to lump sum taxation and tax liability arise in the year preceding the year for which the tax is levied, he/she shall file the tax declaration by 31 January of the year for which the tax is levied.
Serbia Income Tax Rate for Individual Tax Payers
Individual Tax Rate in Serbia is 10%. Exemptions are granted to tax payers for specific type of Income
An individual in Serbia is liable for tax on his income as an employee, when the tax rate is 10%, and on income as a self-employed person, when the tax rate is 10%.
In the case of an individual who is a "permanent resident" of Serbia, tax will be calculated on his income earned in Serbia and overseas.
A foreign resident pays tax only on his income in Serbia.
A resident is any individual who resides on the territory of Serbia for at least 183 consecutive days in a 12 month period that begins or ends in the calendar tax year.
An employer is obligated to withhold, immediately, each month, the amount of income tax and contributions from a salaried worker.
Certain payments are deducted from taxable income, as will be
specified further.
Income from yield on investments (capital) in Serbia is taxed at
the rate of 15%.
Income from lease of real estate in Serbia and royalties are
taxed at the rate of 20%.
The standard rate of corporate tax in 2014 in Serbia is 15%, one of the lowest in Europe.
There are a number of tax incentives for newly formed companies, for those that employ a certain number of new employees, as well as for those that employ workers above a certain age (who have been registered with the Employment Bureau, at least three months prior to their recruitment).
Corporation Types in Serbia
Stock company
Limited liability company
General partnership
Limited partnership
Socially owned enterprise
Public enterprise
Capital gains of resident companies and individuals in Serbia are taxed at the rate of 15%.
Withholding taxes (paid at its source) are charged for payments to non-residents:
Dividends - 20%
Interest - 20%
Royalties - 20%
Technical Fees -0%
Note:
Deduction at source for payments to foreign residents is subject
to the Double Taxation Prevention Treaty.
Social Security in Serbia
All employers and employees, as well as the self employed
are liable for paying mandatory social contributions.
Employer
19.9% (pension disability insurance -13%, health insurance 6.15% and unemployment contributions - 0.75%)
Employee
19.9% (pension disability insurance -13%, health insurance 6.15% and unemployment contributions - 0.75%)
Serbia Dates of filing Returns / Reporting and Payment
The competent tax office issues a general public notice, by December 31 each year, calling citizens to file their tax declaration. This does not apply to those citizens whose income is taxed at source, through withholding tax.
Payers of annual individual income tax (surtax of 10% for those whose total income exceeds four annual average salaries) file a tax declaration no later than March 15 of the following year.
Sole proprietors who keep books file the tax declaration by March 15 of the following year.
Sole proprietors who do not keep books, i.e. who pay lump sum tax have to file their tax declaration by January 31 of the year for which the tax is levied.
Taxpayers who earns revenues from capital gains and other revenues on which withholding tax is not payable, is obligated to file their tax declaration within 15 days from the date of starting to earn the revenues.
Any payer of tax on the revenue from real estate, as well as any payer of tax on the revenue from leasing out chattels, is obligated to file a tax declaration also when withholding tax is payable, within 15 days from the date of lease or sub-lease.
The tax due must be paid within 15 days.