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Non-taxable threshold amounts for 2017

Tax Alert

Adjusted non–taxable amounts in Serbian currency (RSD)

In accordance with Article 12a of Personal Income Tax Law, non-taxable amounts in Serbian currency (RSD) for purposes of personal income tax are being adjusted for annual consumer price index in the year preceding the year for which the alignment is done, based on data of the authority responsible for statistics.

Based on the consumer price index in Serbia in 2016 publicized by the Statistical Office of the Republic of Serbia, table no. 1 displays some of the non-taxable amounts for the purposes of personal income tax, which will be effective from February 1st, 2017:

Table 1:

Description

Amount in RSD

Non-taxable salary amount

11,790

Comuting costs 

3,725

Per diem for local business trip

2,236

Travel costs on a business trip

6,520

Private car for business purposes/business trips

Anniversary award for employees

18,624

New year’s and Christmas’ present for employees’ children, until the age of 15

9,313

Voluntary premiums for health insurance and pensions contributions

5,589

2016 non–taxable threshold for annual income tax purposes

Based on the published data on average annual salary per employee paid out in 2016 in the Republic of Serbia from January 25th, 2017, the non-taxable threshold relevant for determining 2016 annual personal income tax filing liability is set at RSD 2,285,064. Annual income tax payers for 2016 are natural persons, both tax residents and tax non-residents, whose annual net income for 2016 exceeded the afore-mentioned threshold.

Table no. 2 presents the non–taxable amount, taxable amounts and personal deductions relevant for 2016 annual income tax:

Table 2:

Description

Amount in RSD

Non-taxable amount

2,285,064

Income taxable at 10%

4,570,128

Income taxable at 15%

above 4,570,128

Personal deduction for a taxpayer *

304,675

Deduction for a dependant family member *

114,253

*Total amount of deductions cannot exceed 50% of income to be taxed

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