The Law on Amendments to the Law on Personal Income Tax;
The Law on Amendments to the Law on Contributions for Mandatory Social Insurance;
At the session held on December 03,2025, the National Assembly of the Republic of Serbia adopted the Law on Amendments to the Law on Personal Income Tax, as well as the Law on Amendments to the Law on Contributions for Mandatory Social Insurance. These Laws were published in the “Official Gazette of the Republic of Serbia”, No. 109/2025 dated December 04,2025.
Both Laws shall enter into force on the eighth day following their publication in the “Official Gazette of the Republic of Serbia”, while the provisions of both Laws shall apply as of January 01, 2026.
The amendments to both Laws contain measures that are primarily of an incentive nature, namely:
- A new, higher non-taxable amount of salary has been prescribed, in the amount of RSD 34,221 instead of the previous amount of RSD 28,423. This amount shall apply to all salaries paid in the period from January 01, 2026 until the moment when this amount is adjusted in 2027, regardless of the month or calculation period for which the salary is paid.
- The deadline for the application of incentives regulating the right of private-sector employers to a refund of a portion of paid salary tax and contributions, in the amount of 65% to 75% (depending on the number of newly employed persons), has been extended for the payment of salaries to newly employed persons up to and including December 31, 2026.
- It is prescribed that the conditions for using the relevant incentive regarding the minimum duration of registration with the National Employment Service prior to entering into employment shall not apply to unemployed persons up to 30 years of age who are registered under the Youth Guarantee program.
- A uniform deadline has been established requiring seafarers to file a tax return no later than 30 days from the expiry of the third quarter of the current year, for income earned in the previous year, in which they report liabilities related to tax and/or health insurance contributions on income earned during the accounting period covering the calendar year.
- The deadline within which a taxpayer subject to annual personal income tax loses the right to a tax credit if they dispose of shares or interests in an alternative investment fund, or investment units of an alternative investment fund, has been shortened. By the amendment to paragraph 4 of this Article, the period during which the taxpayer must not dispose of shares or interests in an alternative investment fund, or investment units of an alternative investment fund, in order to retain the right to a tax credit based on such investment, has been reduced from the following three to two calendar years.
- The jurisdiction of the tax authorities to which tax returns shall be submitted has been clarified, and alignment has been made with the existing provisions of Article 38 of the Law on Tax Procedure and Tax Administration (“ZPPPA”), which regulate the manner of submitting tax returns.
We note that the application of the incentive for qualified newly employed persons under Article 21ž of the Law on Personal Income Tax (“ZPDG”) and Article 45đ of the Law on Contributions for Mandatory Social Insurance (“ZDOSO”) has not been extended, which means that it applies at the latest to salaries paid up to and including December 31, 2025.
For all questions you might have, we are at your disposal.
