Serbia Income Tax

---
name: serbia-income-tax
description: "Serbian personal income tax for individuals, tax year 2026. Covers the 10% salary tax and the 2026 non-taxable salary amount of RSD 34,221 a month; entrepreneurs taxed on actual profit at 10% and flat-rate (paušal) entrepreneurs, with who may use the flat-rate regime and the nine-criteria independence test; capital income at 15%; capital gains at 15% with the ten-year, family and housing exemptions; rent at 20% after 25% standard costs; other income; and the annual personal income tax with its threshold of three average annual salaries, personal deductions and 10% and 15% rates, filed on PP GPDG by 15 May 2027. Trigger on: porez na dohodak građana, porez na zarade, paušalac, test samostalnosti, PP GPDG, godišnji porez, kapitalni dobitak, porez na zakup. Out of scope: residence and non-residents (rs-cross-border), payroll (serbia-payroll), contributions (serbia-social-contributions), companies (rs-corporate-tax), VAT (serbia-vat)."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/serbia-income-tax"
  jurisdiction: "RS"
  tax_year: "2026"
  last_updated: "2026-10-31"
---

# Serbia: personal income tax (2026)

Source-cited draft: not reviewed by an accountant, not for filing. Built by the OpenAccountants team.

This skill covers how Serbia taxes individuals in 2026: salary, self-employment, capital income, capital gains, rent, other income and the annual personal income tax. It links to the other Serbia skills and does not repeat them:

- [rs-cross-border](rs-cross-border.md): who is resident, non-residents, withholding on payments abroad, treaty relief, arriving and leaving.
- [serbia-payroll](serbia-payroll.md): employer withholding on salary, the PPP-PD return.
- [serbia-social-contributions](serbia-social-contributions.md): pension, health and unemployment contributions for employees and the self-employed.
- [rs-corporate-tax](rs-corporate-tax.md): companies (d.o.o., a.d.).
- [serbia-vat](serbia-vat.md): VAT (PDV).

Law used: **ZPDG**, the Personal Income Tax Act (Zakon o porezu na dohodak građana), in the Ministry of Finance consolidated text read on 23 October 2026. For 2026 the law applies as amended up to 109/2025. Law 80/2026 was published on 31 August 2026 and applies from 1 January 2027 (some parts from 1 January 2028). It changes Articles 15a, 21v, 21g, 21d and 33a. So for 2026 the non-taxable salary amount is still RSD 34,221 a month. From 2027 it is RSD 37,369. Procedure and penalties come from **ZPPPA**, the Tax Procedure and Tax Administration Act.

## Who this applies to

- **Residents** pay tax on worldwide income. **Non-residents** pay only on income earned in Serbia (ZPDG Articles 7 and 8). The residence tests (domicile or centre of vital interests, or 183 days in any 12-month period) are in rs-cross-border.
- **Employees** pay salary tax, withheld by the employer (Articles 13 to 16 and 99).
- **Entrepreneurs** (preduzetnici) pay tax on self-employment income (Articles 31 to 33). There are two ways:
  - **On actual profit**, with books and a tax balance. People who are VAT-registered, or who carry on a business without registering it, are also taxed on profit, with single-entry books (Articles 32(4) and 43).
  - **Flat-rate (paušalac).** Tax is paid on a deemed income set by the Tax Administration in a decision (rešenje) (Articles 33(3) and 40 to 42).
- **Freelancers paid from abroad or by private individuals** under a contract for work or a copyright contract self-assess each quarter (Articles 55(2), 85(1)(18) and 100a).
- **Investors and landlords** pay schedular tax on interest, dividends, capital gains and rent (Articles 61 to 80).
- **Higher earners** pay the annual personal income tax on top, if their income for the year is more than three times the average annual salary (Article 87).

Out of scope here: agricultural income, gambling winnings, insurance proceeds, seafarers, tourist rentals of 30 days or less (taxed as hospitality income under Article 84b), digital assets, and employer incentives under Articles 21v to 21i.

## Rates, bands and thresholds

| Item | Rate or amount | Year | Source |
|---|---|---|---|
| Salary tax | 10% | 2026 | [ZPDG Art. 16](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Non-taxable salary amount, full-time employee | RSD 34,221 a month (pro rata for part-time) | 2026 | [Law 109/2025, Arts. 7 and 8, in the ZPDG consolidated text](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Non-taxable salary amount from 2027 | RSD 37,369 a month | 2027 | [ZPDG Art. 15a(2) as amended by 80/2026](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Self-employment income (actual profit or flat-rate) | 10% | 2026 | [ZPDG Art. 38](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Flat-rate regime: turnover limit | Not allowed if prior-year turnover, or planned turnover for a new business, is over RSD 6,000,000 | 2026 | [ZPDG Art. 40(2)(4)](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Independence test: fees from one client taxed as other income | 20% of gross, no costs, if 5 of 9 criteria are met | 2026 | [ZPDG Arts. 85(1)(17), 85(5)(1) and 86(1)](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Interest, dividends, investment fund income | 15% of gross | 2026 | [ZPDG Arts. 63 and 64](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Interest on dinar deposits; Serbian government, provincial, municipal and NBS bonds | Exempt | 2026 | [ZPDG Art. 65](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Capital gains | 15% | 2026 | [ZPDG Art. 77](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Capital gains: holding period exemption | No gain if held without a break for at least 10 years (every taxpayer, resident or not) | 2026 | [ZPDG Art. 72a(1)(5)](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Rent from immovable property | 20% of gross less 25% standard costs (actual costs on request) | 2026 | [ZPDG Arts. 65v and 65g](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Other income (contracts for work, board fees and similar) | 20% of gross less 20% standard costs | 2026 | [ZPDG Arts. 85(3) and 86(1)](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Royalties paid by a Serbian payer | 20% after standard costs of 50%, 43% or 34% by type of work | 2026 | [ZPDG Arts. 56 to 58](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Freelancer self-taxation, option 1 | 20% of quarterly gross less RSD 110,647 | from 1 Feb 2026 | [ZPDG Arts. 12b(1), 85(5)(2) and 86(1); Government amounts, Sl. glasnik 6/2026](https://www.mfin.gov.rs/upload/media/O1eqFP_6981bc02426f9.docx) |
| Freelancer self-taxation, option 2 | 10% of quarterly gross less RSD 66,733 and less 34% of gross | from 1 Feb 2026 | [ZPDG Arts. 12b(2), 85(5)(2) and 86(2)(2); Government amounts, Sl. glasnik 6/2026](https://www.mfin.gov.rs/upload/media/O1eqFP_6981bc02426f9.docx) |
| Annual tax: threshold | Income over 3 times the average annual salary for the year. For 2025: RSD 5,439,096 | 2025 (2026 figure published in 2027) | [ZPDG Art. 87(1); MoF explanation for 2025](https://www.mfin.gov.rs/dokumenti2/objanjenje-u-vezi-sa-godinjim-porezom-na-dohodak-graana-za-2025-godinu) |
| Average annual salary per employee | RSD 1,813,032 for 2025 (Sl. glasnik 19/26) | 2025 | [MoF explanation for 2025](https://www.mfin.gov.rs/dokumenti2/objanjenje-u-vezi-sa-godinjim-porezom-na-dohodak-graana-za-2025-godinu) |
| Annual tax: personal deduction, taxpayer | 40% of the average annual salary. For 2025: RSD 725,213 | 2025 | [ZPDG Art. 88(1)(1); MoF explanation](https://www.mfin.gov.rs/dokumenti2/objanjenje-u-vezi-sa-godinjim-porezom-na-dohodak-graana-za-2025-godinu) |
| Annual tax: personal deduction, each dependent family member | 15% of the average annual salary. For 2025: RSD 271,955 | 2025 | [ZPDG Art. 88(1)(2); MoF explanation](https://www.mfin.gov.rs/dokumenti2/objanjenje-u-vezi-sa-godinjim-porezom-na-dohodak-graana-za-2025-godinu) |
| Annual tax: cap on personal deductions | 50% of income for taxation | 2026 | [ZPDG Art. 88(2)](https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana) |
| Annual tax: under-40 reduction | Extra reduction of 3 average annual salaries against salary, self-employment and royalty income. For 2025: RSD 5,439,096 | 2025 | [ZPDG Art. 87(4) and (5); MoF explanation](https://www.mfin.gov.rs/dokumenti2/objanjenje-u-vezi-sa-godinjim-porezom-na-dohodak-graana-za-2025-godinu) |
| Annual tax: rates | 10% up to 6 times the average annual salary, 15% above. For 2025 the band edge is RSD 10,878,192 | 2025 | [ZPDG Art. 89; MoF explanation](https://www.mfin.gov.rs/dokumenti2/objanjenje-u-vezi-sa-godinjim-porezom-na-dohodak-graana-za-2025-godinu) |
| Late payment interest | NBS reference rate plus 10 percentage points, simple | 2026 | [ZPPPA Art. 75](https://www.mfin.gov.rs/propisi/zakon-o-poreskom-postupku-i-poreskoj-administraciji-0809) |

## The taxable base

**Salary (Articles 13 to 16).** The base is the gross salary paid, less RSD 34,221 a month for a full-time employee in 2026. Part-time staff get a pro rata amount. A person with more than one employer gets one amount in total, split between employers by working time. The employer withholds 10% with each payment. A newly settled employee can leave 70% of qualifying salary out of the base for five years (Article 15v); the conditions are in rs-cross-border. Payroll mechanics and contributions are in serbia-payroll and serbia-social-contributions.

**Entrepreneur on actual profit (Articles 33 to 39).** The base is taxable profit in the tax balance. It starts from the accounting result and is adjusted under the corporate tax rules (Article 35). Depreciation follows the corporate tax law (Article 35a). The entrepreneur can choose to pay themselves a personal salary (lična zarada). If they do, that salary is a cost and is taxed as salary. If they do not, the contributions they pay on their own insurance are a cost (Article 37a). Losses and capital gains follow the corporate tax rules (Article 35). Tax is 10%.

**Flat-rate entrepreneur (Articles 40 to 42).** The Tax Administration sets a deemed income by decision. It groups flat-rate entrepreneurs by main activity and adjusts a starting base for registered seat, time since registration, age and work capacity, and other circumstances (Article 41). The skill cannot compute that figure; read it from the client's decision. The flat-rate regime is **not** available to a person who (Article 40(2)):

- works in advertising or market research;
- works in wholesale or retail trade, hotels and restaurants, financial intermediation or real estate (trade or catering carried on in a kiosk, trailer or similar movable structure can still be approved on request, Article 40(3), and so can a person who makes and sells only their own products, Article 40(4));
- has other people investing in the business;
- had turnover over RSD 6,000,000 in the previous year, or plans more on starting;
- is registered for VAT.

A flat-rate entrepreneur keeps only a turnover book (Article 43(4)). If the conditions stop being met, the Tax Administration orders books from mid-year or from the next year. On VAT registration, books are due from that day (Article 42(5) and (6)).

**The independence test (Article 85(1)(17)).** Fees paid to an entrepreneur or a flat-rate entrepreneur by the same client, or a person related to that client, are taxed as other income if at least five of these nine criteria are met. They are also taxed this way if, when the work started, it could be expected that five would be met and they later are:

1. The client sets the working hours, or decides holidays and leave, and fees are not cut for time off.
2. The entrepreneur usually works in premises, or at a place, the client provides.
3. The client trains the entrepreneur.
4. The client hired the entrepreneur after a job advertisement or through a recruiter.
5. The client provides the basic tools and equipment, or directs the work beyond a basic order and reasonable checking of results.
6. At least 70% of the entrepreneur's income in a 12-month period starting or ending in the tax year comes from that client or related persons.
7. The entrepreneur does work within the client's business, and the contract has no clause making them bear the usual business risk towards the client's customer.
8. The contract bars the entrepreneur, fully or partly, from working for other clients. A bar limited to a few direct competitors does not count.
9. The entrepreneur works for that client on 130 or more working days in a 12-month period starting or ending in the tax year. Any part of a working day counts as a day.

If the test is met, the base is the full gross fee with no standard costs (Article 85(5)(1)) and the rate is 20% (Article 86(1)). A Serbian legal entity, entrepreneur or flat-rate entrepreneur paying the fee withholds the tax (Article 99(1)(9)). A "client" includes a Serbian or foreign company that engages the entrepreneur directly or indirectly (Article 85(15)). An agent that only passes on payments for a normal commission is not the client; the person for whose account it pays is (Article 85(16) and (17)). The test does not apply to someone who by law cannot be employed by the client (Article 85(18)). Fees caught by the test do not count towards the flat-rate turnover limit (Article 40(5)).

**Capital income (Articles 61 to 65).** The base is the gross interest, dividend or fund income. A liquidation surplus above the capital invested counts as a dividend (Article 61(2)). A Serbian payer withholds 15% (Article 99(1)(3)). Interest from a payer that does not withhold is self-assessed (Article 100a).

**Capital gains (Articles 72 to 79b).** A gain is the sale price less the purchase price on a sale of real estate rights, copyright and industrial property, company shares and securities, or investment fund units (Article 72(1)).

- **Cost.** The purchase price is raised by the consumer price index from purchase to sale (Article 74). For an asset received as a gift or inheritance, the donor's cost is used (Article 75).
- **No gain arises** (Article 72a(1)) on: inheritance in the first line; transfers between spouses or between blood relatives in the direct line (parents, children, grandparents, grandchildren); transfers between divorcing spouses linked to the divorce; Serbian government, provincial, municipal and NBS bonds; assets held without a break for **ten years or more**; and qualifying share swaps in a reorganisation. The ten-year rule has no residence condition. It does not apply when a company buys back its own shares from the member (Article 72a(3)).
- **Losses.** A loss can be set against a later gain and carried forward for five years, counting the year of the loss (Article 78).
- **Home reinvestment.** A seller of real estate who puts the proceeds into housing for themselves or their family in Serbia within 90 days is exempt. Within 12 months, the tax paid is refunded (Article 79).

**Rent (Articles 65a to 65g).** The base is the rent received, including obligations the tenant takes on, less 25% standard costs. Actual costs can be claimed instead, with evidence (Article 65v(3)). A sub-landlord is taxed on the rent received less the rent paid. Rent earned by an entrepreneur on actual profit inside the business is self-employment income (Article 65a(3)). Rentals of flats and rooms for more than 30 days fall here; 30 days or less is hospitality income (Article 65v(2)).

**Other income (Articles 85 and 86).** Fees under a contract for work, board fees and similar income are taxed at 20% after 20% standard costs. Freelancers paid by a foreign payer or a private person under a contract for work or a copyright contract self-assess each quarter. They choose one of two bases each quarter: gross less RSD 110,647 taxed at 20%, or gross less RSD 66,733 and less 34% of gross taxed at 10% (Articles 12b, 55(2), 85(5)(2), 86 and 100a). Royalties paid by Serbian payers use the percentage standard costs in Article 56.

**Annual personal income tax (Articles 87 to 89a).** It applies when a person's income for the year is more than three times the average annual salary for that year. The figure is published after year end.

1. **Add up the income.** This means salary, self-employment profit, royalties, rent, rent of movable property, sports income, hospitality income, other income, and the same kinds of income taxed abroad for residents (Article 87(2)). Capital income and capital gains are **not** included.
2. **Take off tax and contributions.** Salary and most income comes in net of the tax and the employee's own contributions paid in Serbia; rent and profit come in net of the tax paid (Article 87(3)). Foreign income comes in net of the foreign tax (Article 87(7)).
3. **Under-40 reduction.** A taxpayer under 40 on 31 December reduces salary, self-employment and royalty income by three more average annual salaries, but not below zero (Article 87(4) and (5)).
4. **Take off the threshold.** Subtract three average annual salaries. The result is the income for taxation (Article 87(8)).
5. **Take off personal deductions.** That is 40% of the average annual salary for the taxpayer and 15% for each dependent family member, capped at 50% of the income for taxation (Article 88). Only one family member can claim for the same dependants.
6. **Apply the rates.** 10% up to six average annual salaries and 15% above (Article 89).
7. **Credit.** An investment in an alternative investment fund gives a credit of up to 50% of the amount invested, capped at 50% of the annual tax (Article 89a).

## Deadlines and filing

- **Salary.** The employer files the PPP-PD return and pays the tax when it pays the salary (ZPDG Article 101; see serbia-payroll).
- **Entrepreneur on actual profit.** The tax return and tax balance are due by **15 April 2027** for 2026 (ZPDG Article 93). Monthly advances of one twelfth of last year's tax are due within 15 days after each month (Articles 111 and 114(2)). Any shortfall is paid by the filing date (Article 111(5)). A new business files an estimate within 15 days of registration. A business that closes files within 30 days (Article 94).
- **Flat-rate entrepreneur.** Tax set by decision is paid monthly, within 15 days after each month (Article 110(1)). Until the 2026 decision arrives, the 2025 amount is paid (Article 109(2)). A request for flat-rate tax for 2027 is due by **31 October 2026** through the Tax Administration portal; a new business asks on registration (Article 42(1) and (2)). If turnover or other conditions changed a lot in the previous year, a return is due by 31 January (Article 93).
- **Capital gains.** Return within 30 days of the sale of real estate, IP or company shares. For a sale of real estate where the seller may claim the home reinvestment exemption, the deadline is 120 days from the sale (Article 95(3)). For securities and fund units, within 30 days after the end of each half-year (Article 95). The Tax Administration issues a decision and the tax is due within 15 days of receiving it (Article 110(1)(2)).
- **Self-assessed income.** Interest, rent and other income from a payer that does not withhold: return within 30 days of receipt. Freelancer quarterly returns: within 30 days after the end of the quarter (Article 95). Self-assessed tax is paid by the filing deadline (Article 114(1)).
- **Annual personal income tax for 2026.** The Tax Administration posts a pre-filled PP GPDG return on its portal by **1 April 2027**. The taxpayer checks it, corrects it and files it electronically by **15 May 2027** (Article 92). If the taxpayer does not file, the Tax Administration files for them (Article 92(4)). The tax is self-assessed and paid by 15 May 2027 (Articles 100a(1)(4) and 114(1)). No return is needed when income for taxation is zero (MoF explanation for 2025).

## Penalties and interest

- **Interest.** Late tax carries interest at the NBS reference rate plus 10 percentage points, simple, from the day after the due date (ZPPPA Article 75).
- **Individuals who are not entrepreneurs (ZPPPA Article 180).**
  - Late return: a fixed fine of RSD 10,000.
  - Return not filed, or wrong data not corrected: RSD 5,000 to 150,000.
  - Tax in a return or decision not paid: RSD 10,000 if the tax is up to RSD 50,000; RSD 20,000 from 50,000 to 200,000; RSD 40,000 from 200,000 to 1,000,000; RSD 50,000 above 1,000,000.
- **Entrepreneurs (ZPPPA Article 177).**
  - No return and no tax paid: 30% to 100% of the tax found in a tax audit, at least RSD 100,000 (Article 177(1)).
  - Return filed but tax not paid: 10% to 50% of the tax found in a tax audit, at least RSD 50,000 (Article 177(4)).
  - Return not filed but tax paid on time: RSD 50,000 to 500,000 (Article 177(5)).
  - Late return and tax not paid on time: a fixed RSD 15,000 if the tax is up to RSD 100,000; RSD 30,000 from 100,000 to 1,000,000; RSD 100,000 from 1,000,000 to 10,000,000; RSD 150,000 above 10,000,000 (Article 177(8)).
  - Late return but tax paid on time: a fixed RSD 40,000 (Article 177(11)).
  - Return on time but tax paid late: a fixed RSD 10,000, 20,000, 80,000 or 140,000 in the same four bands (Article 177(10)).
  - Repeating an offence under Article 177(1) to (4) or (6) within two years of a final conviction can lead to a ban on the activity for six months to three years (Article 182a).
- **Under-declaration by an entrepreneur.** 30% to 40% of the shortfall, at least RSD 100,000. If the shortfall is no more than 5% of the correct tax, the fine is a fixed RSD 50,000 (ZPPPA Article 178).
- **Voluntary disclosure.** No penalty proceedings start if the taxpayer reports the error and pays before the Tax Administration takes any step (ZPPPA Article 182b).

## Cross-border points

The full rules are in [rs-cross-border](rs-cross-border.md). The points that touch this skill:

- **Foreign tax credit.** A resident who paid tax abroad gets a credit, capped at the Serbian tax on that income (ZPDG Article 12). Foreign income is in the annual tax base net of foreign tax (Article 87(7)).
- **Foreign payer.** Salary or other income from a payer that does not withhold is self-assessed (Article 100a(2) and (3)). Freelancers paid from abroad use the quarterly self-taxation above.
- **Non-residents.** They pay schedular tax on Serbian income, usually by withholding. They also fall under the annual tax on their Serbian income above the threshold (Article 87(1)(2)).
- **Ten-year exemption.** It applies to non-residents too (Article 72a(1)(5)).
- **Assets bought before moving to Serbia.** For shares and securities of non-resident issuers acquired while not resident, and held for at least six months while not resident, the cost is their market value on the day the person became resident (Article 74).
- **Short visits.** A non-resident in Serbia for 90 days or less in a 12-month period, paid by a foreign principal whose Serbian activity the work does not serve, is exempt (Article 9b).
- **Independence test.** A foreign client counts as a client (Article 85(15)). Fees from one foreign client that meet five criteria are other income at 20%, self-assessed by the entrepreneur if no one withholds.

## Worked examples

### Example 1: employee who sells shares and an old flat in 2026

Jelena works full time in Belgrade and is a Serbian resident. Her gross monthly salary in 2026 is RSD 200,000. Her employer takes off the non-taxable amount of RSD 34,221 and withholds 10% (Articles 15a and 16): (200,000 − 34,221) × 0.10 = RSD 16,577.90 a month, RSD 198,934.80 for the year.

In June 2026 she sells shares in a Serbian d.o.o. that she bought four years earlier. The sale price is RSD 3,000,000. Her documented cost, raised by the consumer price index to the sale date (Article 74), is RSD 1,800,000. The gain is RSD 1,200,000 and the tax at 15% (Article 77) is RSD 180,000. She files the capital gains return within 30 days of the sale and pays within 15 days of the decision.

She also sells a flat she has owned for eleven years, at a gain of RSD 5,000,000. She held it without a break for ten years or more, so there is no gain for tax purposes (Article 72a(1)(5)). Capital gains are not part of the annual tax base, and her salary alone is below the annual tax threshold.

```oa-check
name: Example 1, 2026 salary tax plus a share sale and an exempt flat sale
inputs:
  gross_monthly_salary: 200000
  non_taxable_monthly: 34221
  months: 12
  share_sale_price: 3000000
  share_indexed_cost: 1800000
  flat_gain: 5000000
  flat_years_held: 11
steps:
  - monthly_salary_tax: (gross_monthly_salary - non_taxable_monthly) * 0.10
  - annual_salary_tax: monthly_salary_tax * months
  - share_gain: share_sale_price - share_indexed_cost
  - share_tax: share_gain * 0.15
  - flat_taxable_gain: flat_gain * (1 - min(1, floor(flat_years_held / 10)))
  - flat_tax: flat_taxable_gain * 0.15
  - total_tax: annual_salary_tax + share_tax + flat_tax
expected:
  monthly_salary_tax: 16577.90
  annual_salary_tax: 198934.80
  share_gain: 1200000
  share_tax: 180000
  flat_taxable_gain: 0
  flat_tax: 0
  total_tax: 378934.80
```

### Example 2: annual personal income tax with the 15% band

This example uses the 2025 figures, the latest published, for a return filed by 15 May 2026. The 2026 return, due 15 May 2027, uses the same steps with the 2026 average salary, which is published in early 2027.

Marko is 45 and a Serbian resident. In 2025 his salary, after the salary tax and his own contributions withheld, was RSD 20,000,000. He also rented a flat to a company for RSD 1,200,000. The taxable rent was 1,200,000 × 0.75 = RSD 900,000 and the tenant withheld 20%, RSD 180,000, so the rent enters the annual tax at RSD 720,000 (Article 87(3)). He supports his wife and one child, and no one else claims them.

- Income: 20,000,000 + 720,000 = RSD 20,720,000. He is over 40, so there is no under-40 reduction.
- Income for taxation: 20,720,000 − 5,439,096 = RSD 15,280,904.
- Personal deductions: 725,213 + 2 × 271,955 = RSD 1,269,123. The cap is 50% of 15,280,904 = RSD 7,640,452, so the full amount is allowed.
- Taxable income: 15,280,904 − 1,269,123 = RSD 14,011,781.
- Tax: 10% of 10,878,192 = RSD 1,087,819.20, plus 15% of (14,011,781 − 10,878,192) = 15% of 3,133,589 = RSD 470,038.35. Total RSD 1,557,857.55.

The edge case: the rent enters net of the tax already withheld, and the 15% rate applies only to taxable income above six average salaries. Had Marko been 38, his salary would first have been cut by another RSD 5,439,096 (Article 87(4)).

```oa-check
name: Example 2, annual personal income tax for 2025, resident aged 45 with two dependants
inputs:
  net_salary: 20000000
  gross_rent: 1200000
  avg_annual_salary: 1813032
  dependants: 2
steps:
  - rent_taxable: gross_rent * 0.75
  - rent_tax: rent_taxable * 0.20
  - rent_net: rent_taxable - rent_tax
  - income: net_salary + rent_net
  - threshold: avg_annual_salary * 3
  - income_for_taxation: income - threshold
  - deductions_raw: round(avg_annual_salary * 0.40, 0) + dependants * round(avg_annual_salary * 0.15, 0)
  - deductions: min(deductions_raw, income_for_taxation * 0.5)
  - taxable: income_for_taxation - deductions
  - band_edge: avg_annual_salary * 6
  - tax_10: min(taxable, band_edge) * 0.10
  - tax_15: max(taxable - band_edge, 0) * 0.15
  - annual_tax: tax_10 + tax_15
expected:
  rent_net: 720000
  income: 20720000
  threshold: 5439096
  income_for_taxation: 15280904
  deductions: 1269123
  taxable: 14011781
  band_edge: 10878192
  tax_10: 1087819.20
  tax_15: 470038.35
  annual_tax: 1557857.55
```

## Ask the client first

1. Is the person resident in Serbia for 2026? If they arrived or left during the year, use rs-cross-border first.
2. What kinds of income did they have: salary, business profit, flat-rate business, freelance fees from abroad, interest, dividends, rent, share or property sales? Who paid each one, a Serbian company or a foreign or private payer?
3. For an entrepreneur: flat-rate or actual profit? What was 2025 turnover, are they VAT-registered, and what is their activity? Do they work mainly for one client? Check the nine criteria of the independence test.
4. For a sale: when and how was the asset acquired, what was paid, and was it held without a break for ten years? Is the sale between family members? Will property proceeds go into a home within 90 days or 12 months?
5. For the annual tax: date of birth (under 40 on 31 December 2026?), dependants and whether a spouse also claims them, and any alternative investment fund investment in 2026.

## Sources

| Source | URL | Read on |
|---|---|---|
| Ministry of Finance: Zakon o porezu na dohodak građana, consolidated text with amendments up to 80/2026, including the publisher's note on 80/2026 timing and the transitional articles of 109/2025 (page and .docx) | https://www.mfin.gov.rs/propisi/zakon-o-porezu-na-dohodak-gradjana ; https://www.mfin.gov.rs/upload/media/MOq4eO_6aa14ac8c7a47.docx | 2026-10-23 |
| Tax Administration: Personal Income Tax Act page (lists amendments up to 80/26) | https://www.purs.gov.rs/fizicka-lica/pregled-propisa/zakoni/9941/zakon-o-porezu-na-dohodak-gradjana.html | 2026-10-23 |
| Government: adjusted dinar non-taxable amounts under the ZPDG, applying from 1 February 2026 (Sl. glasnik 6/2026), including the Art. 12b quarterly standard costs | https://www.mfin.gov.rs/upload/media/O1eqFP_6981bc02426f9.docx | 2026-10-23 |
| Government: monthly salary amounts under ZPDG Art. 15v for 2026 (Sl. glasnik 115/2025) | https://www.mfin.gov.rs/upload/media/QZLlFz_694931e3dabff.docx | 2026-10-23 |
| Ministry of Finance: explanation of the annual personal income tax for 2025 (30 March 2026): threshold, average salary, deductions, band edge, filing | https://www.mfin.gov.rs/dokumenti2/objanjenje-u-vezi-sa-godinjim-porezom-na-dohodak-graana-za-2025-godinu ; https://www.mfin.gov.rs/upload/media/h2mQ70_69cd060698d7e.docx | 2026-10-23 |
| Ministry of Finance: Zakon o poreskom postupku i poreskoj administraciji, consolidated text up to 80/2026 (Arts. 75, 177, 178, 180, 182a, 182b) | https://www.mfin.gov.rs/propisi/zakon-o-poreskom-postupku-i-poreskoj-administraciji-0809 ; https://www.mfin.gov.rs/upload/media/2UkJa3_6a9fe325297c3.docx | 2026-10-23 |

Not yet confirmed: the 2026 average annual salary, and so the 2026 annual tax threshold, deductions and band edge (published in early 2027); the Art. 12b quarterly standard costs that applied in January 2026, before the 1 February 2026 adjustment, and how they apply to the first quarter of 2026; the Government decree that sets the flat-rate base (the skill reads the amount from the client's decision instead); the current NBS reference rate for late payment interest; the form codes of the entrepreneur's tax return and of the capital gains return.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-31. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `serbia-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/serbia-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.