Serbia

Residents are taxable on their worldwide income, whereas non-residents are taxable on their Serbian-sourced income and worldwide income related to their work in/for the Republic of Serbia.

Tax rates are flat, range from 10% to 20%, and the definition of the taxable base depends on the type of income. See the Income determination section for more information.

Supplementary annual taxation

In addition to the PIT, all taxpayers are subject to supplementary annual PIT. This is an additional tax that is paid by individuals whose income exceeds a prescribed threshold. Certain types of income are excluded from supplementary annual PIT, such as investment income and capital gains.

If the individual is a Serbian tax resident, one is subject to Serbian supplementary annual tax on one's net worldwide income exceeding a prescribed threshold, whereas Serbian tax non-residents are liable to report their Serbian-sourced annual net income.

The progressive rates apply depending on the income level. For the taxable income exceeding prescribed thresholds, between three and six times the average annual salary*, the tax rate is 10%. For net income exceeding six times the average annual salary*, the tax rate is the previous 10% with an additional 15%. For taxpayers who, on the last day of the calendar year for which the supplementary annual PIT is determined, are less than 40 years of age, the annual sum of earnings and taxable income is additionally reduced by the amount of three average annual wages per employee paid in the Republic in the year for which the tax is determined.

* As per official data published by the Statistical Office of the Republic of Serbia.