Serbia: Proposed changes to income tax legislation

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Serbia: Proposed changes to income tax legislation

vucenovic.jpg

Gordana Vucenovic

At the beginning of May, Mladjan Dinkic, the Serbian Minister of Economy, announced that the government proposes the following changes in the area of income taxation:

  • Decrease of payroll taxes from 12% to 10%;

  • Increase of pension contributions from 22% to 24%; and

  • Increase in the limit of flat tax from RSD 3 million ($34,590) to RSD 6 million.

The changes are designed to benefit crafters and small and medium enterprises by increasing the limit for taxation.

Furthermore, the employers will be significantly relieved by reduction of payroll tax rate from 12% to 10% which on an annual level equals approximately RSD 2 billion, while the tax free income would be increased from RSD 8,700 to RSD 11,000.

On the other hand, the tax rate for pension insurance contributions would be increased from 22% to 24%, which would be a great benefit for the pension fund.

Mr Dinkic has also announced that there will be more changes to the tax laws, which would bring about RSD 30 billion savings by the end of the year. Some of the areas that will benefit most from those changes are agriculture and software engineering.

Gordana Vucenovic (gordana.vucenovic@eurofast.eu)

Eurofast Global, Belgrade Office/Serbia

Tel: +381 11 3241 484

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

The EU is preparing countermeasures to protect its interests, Ursula von der Leyen said; in other news, the NRA is suing the state of Colorado over a 6.5% tax on the sale of firearms
The ruling is ‘well-structured’ in its references to the OECD TP guidelines, one expert says, while another argues it overlooks key technical issues
India also brokered its first-ever multilateral APA last year, the Central Board of Taxes announced
A global tax framework may not materialise anytime soon, but a common set of principles is becoming increasingly necessary, Rudolf Winkenius also tells ITR
Kingsley Napley’s claimants are arguing that taxing the provision of education breaches the European Convention on Human Rights
While pillar two can progress without the US, it won’t reach the same heights without American involvement, argues Renáta Bláhová, founding partner of BMB Partners Taxand
There are unanswered questions as to how foreign investors could reclaim money via tax credits, advisers suggested
Amid an ever-changing tax environment, India’s advisory market is bustling with competition ahead of the 2025 World Tax rankings and ITR Awards
The deal comes after PwC had accused Paul McNab of using confidential information; in other news, McDermott hired a new London tax head from a US rival
Looking at transfer pricing simplification is “obviously helpful”, but it should be done in line with current standards, a senior government figure reportedly said
Gift this article