Since we have all already received the annual income certificates for 2021 and the elements for calculating the annual personal income tax are already known, it is the right time to check who is liable this year.
The deadline for submitting the tax return for the annual personal income tax is May 16, but this year there are also newspapers, so it is better to do the simulation on time.
Annual income tax payers are tax residents of Serbia who report their worldwide income, and non-residents of Serbia who report income earned on the territory of Serbia if the amounts in question are over non-taxable.
A significant change compared to previous years is that for persons under 40 years of age, the non-taxable amount of income, instead of 3 average annual earnings, is now doubled.
The following elements apply to the calculation:
Tax-free amount for persons over 40 years of age – 3,268,224 dinars
Tax-free amount for persons under 40 years of age - 6,536,448 dinars
Personal deduction for an employee - 435,763 dinars
Deduction per dependent family member - 163,411 dinars
The total amount of deductions cannot exceed 50% of taxable income.
As for the tax rate itself, it is progressive and amounts to:
- 10% for taxable income up to RSD 6,536,448
- 15% for taxable income over RSD 6,536,448
The submission procedure is unchanged, electronically on the portal of the Tax Administration, for which it is necessary to have a qualified electronic certificate or in the competent branch of the Tax Administration according to the place of residence by filling out the PPDG-2R form (in person or by mail). It is expected that the form will be changed due to the additional identification of persons up to 40 years of age.
As for the attachments to the tax return, they are a certificate of income in 2021 on all grounds and evidence of dependent family members if there is a basis for it.
Based on the submission, the Tax Administration will carry out a check and issue a decision with payment instructions, which must be made within 15 days of receiving the decision.
If you need support in calculating and preparing documentation, you can contact us at office@hrfabrika.com.
