The Law stipulates that the annual personal income tax is paid by persons who earned in the calendar year more than three times the amount of the average annual salary per employee paid in Serbia in the year for which the tax is determined. Therefore, if the annual net income of a certain individual earned in 2022 exceeds the non-taxable amount of RSD 3,719,376.00 (cca. EUR 31,700), that person will be obliged to submit a tax return for determination of the annual personal income tax.

In this regard, we would like to remind you of our article – Tax relief for persons younger than 40. For this category of individuals, non-taxable limit is doubled, but only in relation to net income from: (i) salaries, (ii) entrepreneurial business activity, or (iii) copyright and related and industrial property rights.

Legal amendments from December 2022 specified the method of reporting the annual personal income tax. Namely, the novelty is that the tax authority, based on data from official records, enters data into tax return and uploads it to the portal of the Tax Administration no later than 1st April 2023. The taxpayer is then obliged to amend or supplement the tax return in the part where correct and appropriate data are not shown and then sign and submit the tax return in electronic form through the “eTaxes” portal.

The deadline for submitting the tax return for the annual personal income tax based on income earned in 2022 is 15th May 2023. If the taxpayer does not submit the tax return within the specified period, the Tax Administration submits the tax return for that person.

Whether and in which way the changes described above will be applied in practice, there is nothing left but to closely follow the actions of the tax authorities in the coming period. In any case, taxpayers should check their status in the “eTaxes” portal during April 2023, because otherwise there is always a risk that the tax authorities will make a certain omission and/or determine the wrong amount of tax liability.

Author: Dušan M. Jevtić

Photo: Pexels.com | Nataliya Vaitkevich