The Serbian Parliament approved amendments to the Personal Income Tax Law on 26 October 2026, revising tax brackets, increasing the non-taxable allowance, and introducing new deductions for education and healthcare expenses. The top marginal rate remains at 20%, but the threshold for the higher bracket is raised from RSD 3,000,000 to RSD 3,600,000 annually. The annual non-taxable allowance is increased to RSD 480,000. These changes take effect from 1 January 2027 and will impact monthly withholding calculations for employers.
Key Takeaways
- Revised Tax Brackets: The 10% rate applies to income up to RSD 3,600,000; income above is taxed at 20%. This reduces effective tax burden for middle-income earners.
- Higher Non-Taxable Allowance: The basic personal allowance rises to RSD 480,000 per year, providing additional relief for all taxpayers.
- New Deductions: Taxpayers may deduct up to RSD 100,000 annually for qualified education and medical expenses, subject to documentation.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement