Guide
Annual personal income tax
Annual personal income tax in Serbia is paid by individuals whose total net income for the year exceeded the legal non-taxable threshold. We explain the threshold, the 10% and 15% rates, who must file, and how we handle it for you.
Annual personal income tax is a special tax that does not apply to everyone. It is paid by individuals whose total annual income exceeded the legally prescribed threshold. The aim is for the highest earners to pay an additional amount on top of the tax already paid on individual sources of income during the year (on salary, on self-employment income, on copyright fees, and similar). This is an annual calculation across the whole calendar year, not a monthly obligation. The threshold is tied to the average annual wage in Serbia, so the amounts change from year to year. For income earned in 2025, filing and payment fall in 2026. If your income comes from several sources, it is easy to overlook that you crossed the threshold at all, because income certificates are usually stated in gross amounts while the threshold is defined in net terms.
What you should know
- The obligation applies only to individuals whose total net income in 2025 exceeded the non-taxable amount of 5,439,096 dinars, which is three times the average annual wage per employee in the Republic of Serbia. Anyone below that threshold owes nothing and does not file.
- The tax is progressive. A 10% rate applies to taxable income up to 10,878,192 dinars (six times the average annual wage), and a 15% rate to the portion of income above that amount.
- Before the rate is applied, a personal allowance and allowances for dependent family members are recognized, reducing the base on which the tax is calculated.
- Taxpayers under the age of 40 are entitled to an additional deduction, but only for income from employment, self-employment, and copyright and related rights, not for, say, rental income.
- Income from several sources is counted together: salary, self-employment income, copyright fees, rental income, and other income prescribed by law. Residents are taxed on income from at home and abroad, non-residents on income earned in Serbia.
- The return is filed by self-assessment on form PP GPDG, electronically via the ePorezi portal. The Tax Administration pre-fills the return based on the data it holds, and you check it and supplement it if needed.
How we handle it
- 01 We add up all your income We collect income certificates from every source during the year, from salary and self-employment to copyright fees and rent, and convert everything to a net amount so we can see precisely whether you crossed the threshold.
- 02 We check whether you owe tax at all We compare your total net income with the non-taxable amount of 5,439,096 dinars. If you are below the threshold, there is no obligation and no return, and we confirm that clearly, with no unnecessary steps.
- 03 We calculate the base and the tax We apply the personal allowance, allowances for dependent family members and, if you qualify, the additional deduction for those under 40. We then calculate the tax at 10% and 15% on the relevant portions of taxable income.
- 04 We prepare and file the PP GPDG We review the pre-filled return that the Tax Administration posts on ePorezi, correct and supplement the data where needed, and file the return electronically by self-assessment on your behalf.
- 05 We follow the payment and deadlines We prepare the payment order with the exact amount and reference number, keep track of the legal deadline, and store all documentation, so you do not have to worry about this obligation.
Frequently asked questions
Who must pay annual personal income tax?
Individuals whose total net income earned in 2025 exceeded the non-taxable amount of 5,439,096 dinars. If your total income is below that threshold, you owe no tax and do not file a return.
What are the rates and when does the higher one apply?
The tax is progressive. A 10% rate applies to taxable income up to 10,878,192 dinars, and a 15% rate to the portion above that amount. The higher rate therefore begins only once taxable income passes six times the average annual wage.
Which income counts toward annual income?
Income from several sources is added together: salary, self-employment income, copyright and related fees, rental income, and other income prescribed by law. Residents report income from at home and abroad, non-residents report income earned in Serbia.
How is the return filed and on which form?
The return is filed by self-assessment on form PP GPDG, electronically via the ePorezi portal. The Tax Administration pre-fills the return based on the data it holds, and the taxpayer checks it, supplements it if needed, files it, and pays the tax within the legal deadline.
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