Income tax in Serbia - tax-checker

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Tax rate

flat rate 10 %: employment income

Special tax rates

Income from:

1. Self-employment at 10% rate

2. Freelancer at 10% or 20% depends on which of two possible models applied

3. Royalty at 20%

4. Capital at 15%

5. Capital gain at 15%

6. Real-estate income at 20%

7. Other at 20%

8. Seafarers income at 10%

Annual tax on income at 10% and 15% for annual income above 6 average annual salaries as published by the Statistical Office of the Republic of Serbia

Tax liability

Residents are due to pay tax on worldwide income. Non-residents are liable to report tax only on Serbian sourced income. Non-resident taxpayer who spends up to 90 days in Serbia in 12 months is exempt for income taxation if that income is derived from a non-resident principal who does not perform the business activity or other activity in the territory of Serbia.

Unlimited

On worldwide income (except where DTA restricts the right to property tax):

individuals with their residence or habitual abode in Serbia

Limited

On certain income in Serbia:

individuals, who have neither their residence nor their habitual abode in Serbia, on certain income in Serbia

Tax assessment period

None

Income categories

Income from:

Employment
Self-employment / Freelancers
Royalty
Capital
Capital gain
Real-estate income
Other
Seafarers income

Accounting

Only needed for certain categories of self-employed individuals

Loss set-offs

Only capital gains could be offset with capital losses

Loss carryback

Not possible

Loss carryforward

Applicable only to capital losses and losses generated by self-employment income; 5 years carryforward period.

No loss carryback

Operating expenses

Expenses of the business

Tax allowable expenses

Deductible costs are set out depending on type of income (copy right income, service agreement income, etc.)

Lump sum option

For income from self-employment under certain conditions an entrepreneur can register with the tax authorities to pay taxes on a lump sum based on an assessment of the tax authorities regardless of the actual income and expenses.