On 26 October 2026, the Serbian Tax Administration published official guidance on the tax treatment of private use of employer-provided vehicles. The guidance clarifies the valuation methodology for determining the taxable benefit in kind for personal income tax (PIT) and social contribution purposes. It addresses scenarios where employees use company cars for private journeys, including commuting, and prescribes specific calculation methods based on vehicle value, age, and fuel type. The rules are effective immediately and apply to all employers providing such benefits.
Key Takeaways
- Valuation Methodology: The taxable benefit is calculated using a statutory formula referencing the vehicle’s catalog price, reduced by age coefficients, and adjusted for fuel type. Employers must apply this method consistently.
- Compliance Obligations: Employers are required to report the calculated benefit on monthly payroll returns and withhold PIT and contributions accordingly. Failure to comply may trigger penalties under the Tax Procedure Law.
- Record-Keeping: Companies must maintain detailed logs of private versus business mileage to support the benefit calculation in case of audit.
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