Annual personal income tax is paid by natural persons which had annual income in 2016 three times higher than the average annual salary per employee paid in the Serbia in the year for which the tax is assessed (3 x 761,688 = 2,285,064 RSD for 2016), including:
1) residents for income earned on the territory of the Serbia and in another country;
2) non-resident for income earned on the territory of the Serbia.
Deadline for the submission of the annual personal income tax return for 2016 is 15th May 2017. Annual personal Income tax return (PPDG-2R form) for 2016 can be submitted in either hard copy or electronic form. For the submission in the electronic form qualified electronic certificate for the tax payer is necessary, or the tax payer may authorize another person in the possession of electronic certificate via PEP form to submit the annual income tax return.
Annual personal income tax is paid upon the receipt of the decision of the tax administration.
The basis of the annual personal income tax is taxable income which is the difference between the taxable revenue and the personal deductions amounting to:
1) the taxpayer - 40% of the average annual salary per employee for 2016 (40% x 761,688 = 304,675 RSD);
2) for a dependent family member - 15% of the average annual salary per employee (15% x 761,688 = 114,253 RSD) per member.
The total amount of personal deductions cannot exceed 50% of the taxable income.
Non-taxable amount is 2,285,064 RSD. Tax rate is progressive and for the annual income between 2,285,064 and 6,855,192 RSD tax rate of 10% is applied. If the annual income is higher than 6,855,192 RSD (six times the average annual salary in Serbia for 2016), tax rate of 10% is applied for the income up to 6,855,192 RSD, while 15% for the income over this amount.