Overview Of Serbia's 2023 Income Tax Regulations And Non-Taxable Thresholds

• Published date: 13 March 2024
• Subject Matter: Tax, Income Tax
• Law Firm: Eurofast
• Author: Aleksandar Maljkovic

As of February 26, 2024, the Ministry of Finance in Serbia has released crucial information regarding the non-taxable amounts applicable to the annual tax return for incomes earned in 2023. This update aims to provide individuals with clarity on taxation thresholds, deductions, and the legal deadline for filing their annual tax returns.

Non-Taxable Income Threshold

For the 2023 income tax, the non-taxable income threshold has been set at 4,269,564 RSD, equivalent to approximately EUR 36,500. This threshold reflects three times the average annual salary per employee paid in Serbia during the year 2023 (1,423,188 x 3).

Taxation Scope for Residents and Non-Residents

Residents in Serbia are required to include all income, whether earned within the country or abroad, in their taxable income. Non-residents, on the other hand, are only subject to taxation on income earned within the territorial boundaries of the Republic.

Special Consideration for Individuals Under 40

Individuals below the age of 40 are eligible for an additional reduction in taxable income for the annual personal income tax, as outlined in Article 87, paragraph 4 of the Law.

This reduction is equivalent to the non-taxable amount of annual personal income tax, which is set at 4,269,564 dinars.

Personal Deductions

According to Article 88 of the Income Tax Law, taxpayers can benefit from personal deductions, including:

• 40% of...