Serbia: Proposed changes to income tax legislation

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

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

ITR understands that UK Chancellor Rachel Reeves will announce a consultation on the proposed financial reward scheme, which had left advisers fretting
The long-running dispute centres on Medtronic’s use of the comparable uncontrolled transaction TP method; in other news, Paul Hastings and FTI Consulting both made double tax hires
The boutique Australian firm’s TP award recognition proves that world-class advisory services aren’t limited to the ‘big four’, the firm’s founder tells ITR
Canadian and Indian dual VAT models have been a source of inspiration for the Brazilian model, but the latter has unique and innovative features, the OECD paper claimed
More sophisticated use of technology, heightened TP scrutiny and stricter filing requirements are making South African Revenue Service audits a formidable challenge
The hire of Doug Wick expands Baker McKenzie’s state and local tax practice and adds to the firm’s growing ex-IRS expertise
One year after Nuwaru joined the WTS network, leaders James Jobson and Matthew Missaghi reflect on the firm’s mission to offer mid-tier pricing but deliver top-tier results
Join ITR's Head of Research, John Harrison, for an overview of key dates, new developments, best practices, and more for next year’s research cycle
The president’s tariff regime has already caused misery for taxpayers. Losing at the Supreme Court would mean it was all for nothing
The US itself was the biggest loser of tax revenue to American multinationals’ profit shifting, the Tax Justice Network reported; in other news, firms made key tax hires
Gift this article