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 2026

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

In the first of a two-part series on capital v revenue in R&D, Jayne Stokes explores these key concepts and where UK companies need to tread carefully
Magnus Pantzar is set to join as managing director after spending nearly a decade as EQT’s global head of tax
The OECD’s project was up for debate as Matt Williams spoke to ITR following BDO’s tax strategist survey, which uncovered increased complexity and costs among multinationals
Sponsored by Deloitte
Sameer Nurmohamed, partner, Deloitte Legal Canada
Sponsored by Deloitte
George Ankomah, partner, Tax & Regulatory Services, Deloitte Africa (Ghana)
The recent spree of firm mergers and acquisitions proves that geographic scale is the name of the game
The big four spin-off firm becomes Taxand’s second UK member; in other news, Haynes Boone launched a UK tax practice
Sponsored by Deloitte Luxembourg
Jean-Michel Henry and Mona El-Begawi of Deloitte Luxembourg examine the complexities created by timing differences in Luxembourg, EU, and OECD tax regimes
Stephanie Pantelidaki’s economic expertise will give Norton Rose Fulbright’s other teams ‘extra firepower,’ she says
Sponsored by MFA Legal & Tech
Samuel Fernandes de Almeida of MFA Legal & Tech assesses whether Portugal’s 7.5% surcharge on non-residents aligns with the EU’s free movement of capital principle and passes the proportionality test
Gift this article