Serbia

Social security contributions

Social security contributions are calculated and withheld by the employer from the salary paid to an employee, up to a specified cap. The contributions are payable both by the employee and employer, the portion payable by the employee is taken from the gross salary amount while the portion payable by the employer is payable on top of the employee’s gross salary. The amount borne by the employer is treated as an operating cost, while the portion payable by the employee is taken from gross salary. The rates are as follows.

For the employee:

• Pension and disability insurance: 14%.
• Health insurance: 5.15%.
• Unemployment insurance: 0.75%.

For the employer:

• Pension and disability insurance: 10%.
• Health insurance: 5.15%.

For other types of income, contributions are payable at specific rates depending on the type of income.

The minimum tax base for social security contributions defined by the Law on Mandatory Social Insurance Contributions is fixed at 35.05% of the average monthly salary published in Serbia, while the maximum tax base for social security contributions is capped at five times the average monthly salary published by official statistics in Serbia at the moment of salary payment.

Consumption taxes

Value-added tax (VAT)

The standard VAT rate is 20%. See the Other taxes section in the Corporate tax summary for more information.

Property tax

Property tax is payable annually on a quarterly basis in Serbia by all legal entities and individuals who own or have rights over real estate located in Serbia. See the Other taxes section in the Corporate tax summary for more information.