Tax in Serbia

Tax In Serbia

A Contractor’s Guide to Taxes

One of the most consistently challenging aspects of contracting in Serbia is complying with the country’s tax system. As well as paying tax in Serbia, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income:

If you’re working in Serbia under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Serbia for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Serbia, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Serbia through PAYE is left with the prospect of doing everything themselves.

Do you know much about Serbian Tax Law? Does Serbia have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Serbia can range from 0 to 15 per cent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator

If you are a contractor and want a calculation on your tax and net retention in Serbia, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax

Contractors in Serbia are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Serbian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Serbian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Serbian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax

We work with numerous umbrella companies in Serbia, many of whom are experts in tax and immigration laws. If you have any questions about tax in Serbia, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Serbian work permits.

Our advice is 100 per cent free and comes with no obligations. You will be paying taxes in Serbia but without the overhead of directly dealing with the Serbian tax authorities. Get in touch with us today for some reliable advice on tax in Serbia!

When Do You Need to Lodge Your Tax Return?:
After the calendar year (31 December)
Tax Filing Deadline :
15 May
Can you file it online? :
Yes, https://eporezi.poreskauprava.gov.rs/user/login.html?back=/
Currency:
Serbian Dinar (RSD)
Tax-free Threshold in:
RSD 2,375,136
Grossed Income:
Up to 2,375,136
Tax Rate:
0%
Grossed Income:
Above 2,375,137 up to 7,125,408
Tax Rate:
10%
Grossed Income:
Above 7,125,408
Tax Rate:
15%
How long does it take to set up:
5.5 days
How much does it cost:
RSD 9,000
Is it easy? :
Starting a Business Rank: 32, https://www.doingbusiness.org/data/exploreeconomies/serbia
How to File Taxes in:

Filing taxes in Serbia involves the following:

Step 1: Download and install the ePorezi application here(the link is external). Afterwards, you will be able to enter the e-Taxes portal.

Step 2: Fill out an electronic identification. To do this, you would require a qualified electronic certificate with a chip, issued by one of the certification bodies in Serbia. In the process of registering for this, you will also receive a card reader with a chip. Alternatively, your electronic certificate may be stored on a USB. More information may be found here(the link is external).

Step 3: Insert your qualified electronic certificate into the card reader or the USB.

Step 4: Enter your pin and then click the log-in button.

Step 5: After logging in, select the taxpayer whom you’re authorised to file a tax return for.

Step 6: Select the tax return that you want to file. For personal income tax returns, it is the PPDG-2R form.

Step 7: Submit your tax return.

Additional Information

Notes:

Tax rates on other income:

  • Investment income including interests, dividends and income derived from investment units: 15%
  • Income from property leasing and subleasing: 20%
  • Income from insurance, reduced by paid premiums: 15%
  • Withholding tax on royalties from copyrights: 20%.

Does the 183-day rule apply in Serbia?

Yes

When do you become a tax resident in Serbia?

You become a tax resident in Serbia if:

  • You have domicile, residence or centre of business and lie interests in Serbia, or
  • If you spend more than 183 days within 12 months in Serbia.

Am I taxed on my global income in Serbia?

Yes if you are a resident. Non-residents are subject to tax on their Serbian-source income only.