The Ministry of Finance of the Republic of Serbia has announced the working version of the Law on Amendments and Supplements to the Law on Personal Income Tax, which will be applied from January 1st, 2025.

They proposed the following changes:

• The increase of the non-taxable part of salary in Serbia from 25.000,00 dinars to 28.423,00 dinars per month. This increase of the non-taxable part means a higher net salary in the amount of 342,30 dinars per month, while the cost for employer remains the same.  This of course means under the assumption that the salaries in the employment agreement are defined correctly as gross salaries (and not as net salaries), which is prescribed by the Labor Law by Art.105 para 2.
• The increase in the non-taxable part of per diems for the business travel abroad from 50,00 EUR to 90,00 EUR per day.
• It has been introduced a special income category for seafarers in Serbia. If the seafarers work on a ship longer than 174 days, they are exempt from paying the tax. If they work less than 174 days on a ship, the income will be determined on a daily basis in a lump sum by the Minister who is responsible for financial affairs multiplied by the number of days. The tax rate is 10%.
• The tax relief for annual personal income tax on investing in an open alternative investment fund is now tightened so that the investment must be held for at least in the calendar year in which it was invested and in the following three years. If the investment is sold earlier, the tax credit must be returned increased by the interest.
• The tax benefits for employment of the persons registered as unemployed at the National Employment Service for at least six months have been extended until the end of 2025.