Tax
Flat-rate wage tax with an annual surtax, plus corporate tax and VAT
Serbia taxes salary at a flat rate with a non-taxable allowance, adding a progressive annual surtax on high earners. Corporate income tax is charged at a low flat rate, and VAT applies at a standard and reduced rate.
Key rules
- Salary income is taxed at a flat rate after a monthly non-taxable amount.
- High total annual income attracts an additional progressive annual tax.
- Corporate income tax is charged at a single flat rate on adjusted profits.
Governing law
- Personal Income Tax Act (Zakon o porezu na dohodak građana)
- Corporate Income Tax Act
In practice
Electronic invoicing through the SEF system is mandatory for public-sector and VAT-registered transactions.