Serbia Tax Laws and Regulations

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Serbian Tax Laws

Dealing with tax, payroll, and employment regulations for your staff from overseas is always a tricky process and poses complications that demand expert guidance. Serbia is no exception, with an unusual approach to assessing personal income tax, in addition to corporate taxes across various categories.

Bradford Jacobs’ dedicated specialists remove the burdens of worrying about these complications while you focus on building your business in a new territory. From locating the brightest talent to running your payroll, our Professional Employer Organization (PEO) and Employer of Record (EOR) specialists are with you every step of the way.

Our guide unravels the ‘red tape’ and highlights how Bradford Jacobs will assist your company with untying the knots – and avoiding the hazards!

Overview of Taxes in Serbia

* Serbia is not a member of the European Union, until at least 2025, or the Eurozone and uses the dinar (RSD) as its currency.

  • Residents’ Personal Income Tax (PIT): The tax-free allowance is RSD 19,300 (€164, US$186) as of January 2022. Residents are taxed 10% on employment income including bonuses, fringe benefits and overtime. Rates between 10% and 20% apply to business income, dividends, property.
  • Social Insurance Taxes: Employers contribute the equivalent of 16.15% from employees’ gross salaries to pension, disability, and health insurance funds. Employees contribute 19.90% to the funds.
  • Corporate Income Tax (CIT): The standard rate is 15% on worldwide taxable profits for resident companies. Non-resident companies are taxed on Serbia-sourced income.
  • Capital Gains Tax (CGT): Residents are taxed at 15%, non-residents at 20%.
  • Withholding Tax (WHT): Withholding tax on dividends, royalties and interest paid to non-residents is 20%. Some fees paid for technical services attract 25% WHT.

Serbia Individual Tax – Single, Married

Liability for personal income tax is based on residency and categories of income. Individuals whose personal and economic base is in Serbia and who reside there for more than 183 days in a 12-month period are residents and are taxed on their worldwide income. Those who are not based in Serbia and do not reside there for more than 183 days are non-residents and taxed only on Serbian-sourced income. Joint filings are not allowed, and married couples must file separate returns.

* Serbia is not a member of the European Union, until at least 2025, or the Eurozone and uses the dinar (RSD) as its currency.