On March 9th, 2021, the Ministry of Finance
announced explanation No. 413-00-3 / 2021-04 relating to the manner
of calculating the annual income tax.
According to Article 87 of the Law on Personal Income Tax, the
annual personal income tax is paid by persons
who have earned over three times the average
annual salary (per employee) in the Republic of Serbia in
the year for which the tax is determined. The latter
is according to the data of the Republic's body
in charge of statistics.
The non-taxable amount of income for 2020
amounts to 2.987.424,00
dinars (being the average annual salary per
employee paid in the Republic of Serbia in
2020 rsd 995.808,00 x 3).
When calculating their personal income tax, residents of
Serbia take into account the income earned in Serbia and
other countries, while non-residents take into account only the
income earned in Serbia.
