In the Official Gazette of the RS no. 92/2023 dated October 27, 2023, amendments and supplements of several laws were published, including:

• Law on Personal Income Tax;
• Law on Contributions for Mandatory Social Insurance; and
• Law on Property Taxes.

Below is an overview of the most significant changes to the above-listed laws.

Law on Personal Income Tax

Amendments to the Law on Personal Income Tax have increased the non-taxable amount of personal income tax on salaries, which now amounts to 25,000 dinars (instead of the previous 21,712 dinars).

These changes will apply from January 1, 2024, and the first subsequent adjustment of the non-taxable amount will be made in 2025.

Law on Contributions for Mandatory Social Insurance

Regarding amendments to the Law on Contributions for Mandatory Social Insurance, the right to a refund of a part of personal income tax and contributions for mandatory social insurance based on salaries for newly employed individuals has been extended until December 31, 2024.

The effective date of these changes is also January 1, 2024.

In this regard, and in accordance with the Data on the Average Salary per Employee in the Republic of Serbia for the period from October 2022 to September 2023, which was published in the Official Gazette of the RS no. 104/2023, the lowest monthly base on which contributions for mandatory social insurance will be calculated and paid in 2024 is 40,143 dinars, while the highest is 573,470 dinars.

Law on Property Taxes

Amendments to the Law on Property Taxes have changed the deadline for transferring responsibilities from the Tax Administration to local self-government units for determining, collecting, and controlling inheritance and gift taxes, as well as taxes on the transfer of absolute rights.

Local self-government units will fully determine, collect, and control these taxes starting from January 1, 2025.

The postponement of the transfer of responsibilities aims to provide an additional timeframe for establishing the conditions necessary for the mentioned transfer of responsibilities.

These changes come into effect on January 1, 2024.

This article is to be considered as exclusively informative, with no intention to provide legal advice. If you should need additional information, please contact us directly.