The deadline for the submission of annual personal income tax returns for 2025 is May 15, 2026, which is also the last date when the determined amount of tax stated in the submitted tax return must be paid.
Milosavljevic & Dabetic team of experts has prepared a detailed explanation on how personal income tax works in Serbia and what you need to know.
Who is Obligated to Submit a Tax Return?
All individuals whose total net income in 2025 exceeds 5.439.096 RSD (the non-taxable amount) are required to submit the tax return for annual personal income tax.
Tax residents of the Republic of Serbia must report their entire worldwide income, while non-residents of the Republic of Serbia only report income earned on the territory of Serbia.
For taxpayers who are younger than 40 years, as of the last day of 2025, the total net income is further reduced by 5.439.096 RSD.
Taxable Sources of Income
The income derived from the following sources is included in the total net income earned in the calendar year:
- Salaries
- Income from self-employment
- Income from copyrights, related rights, and industrial property rights
- Other income from Article 85 of Personal Income Tax Law, etc.
How is Taxable Income Determined?
The taxable income is determined as the difference between the total net income earned in the calendar year and the non-taxable amount. This amount is further reduced by personal deductions, which are:
- 725.213 RSD for the taxpayer
- 271.955 RSD for each dependent family member
The total amount of personal deductions shall not exceed 50% of the taxable income.
Tax Rates
The tax rate is applied progressively, depending on the amount of the determined taxable income:
- 10% for taxable income up to 10.878.192 RSD
- 15% for taxable income exceeding 10.878.192 RSD (10% is applied to the first 10.878.192 RSD, and 15% to the amount above this threshold).
Tax Credit for Investment in Alternative Investment Funds
Taxpayers who invest in an alternative investment fund are entitled to a tax credit of up to 50% of the amount invested within the calendar year. However, this credit shall not exceed 50% of the total annual income tax liability.
To exercise this right, the taxpayer must not sell their investment units in the fund within the investment year and the three calendar years which follow.
Submitting the Tax Return
Tax Administration automatically generates a pre-filled tax return based on the available data and uploads it electronically on the Tax Administration portal no later than 1 April 2026, allowing taxpayers to review it and verify the accuracy and correctness of the inserted data.
After this, the taxpayer is allowed to amend or supplement and to further submit the tax return by the deadline, in the part in which the correct data is not indicated or in cases where relevant information is missing (e.g., details on dependent family members and deductions).
The annual personal income tax return must be submitted exclusively electronically through the Tax Administration portal on the PP GPDG form.
Navigating Serbia’s Tax Laws
Understanding personal income taxes in Serbia goes beyond mere compliance – it’s also an opportunity to enhance your financial planning.
By staying up to date on tax rates, deductions, and benefits – particularly those for younger individuals – you can make more informed choices to increase your wealth. This guide serves as your map to efficiently understand managing your taxes in Serbia, providing both peace of mind and financial stability.