Serbia

The last significant amendments to the Personal Income Tax (PIT) Law, applicable as of January 2020, introduced an obligation of documenting payments made to employees for the non-taxable compensation of transportation costs for arrival and departure from work.

The amendments to the PIT Law also introduce a specific set of criteria for determining under what circumstances payments to entrepreneurs should be reclassified for taxation purposes as other income of individuals without the right to deduct standardised expenditures and new tax incentives for hiring new employees who fulfil certain conditions.

The salary tax rate remains 10%.

With the latest changes, applicable as of January 2024, the non-taxable amount for salary tax increased to 25,000 Serbian dinars (RSD).