On December 4, 2025, the National Assembly of the Republic of Serbia adopted significant amendments to the Personal Income Tax Law and the Law on Mandatory Social Security Contributions. Published in the Official Gazette of Serbia (No. 94/2024), these changes will take effect on January 1, 2025. Below are the key updates:
1. Loss of Tax Credit for Investments in Alternative Investment Fund Units
Individuals claiming tax credits for investments in alternative investment fund units must now hold these units for at least three years. The holding period starts after the calendar year for which the tax is assessed.
If the units are sold in the year they were acquired or within the following three calendar years, the tax credit will be revoked, impacting the annual personal income tax calculation.
2. Increased Tax-Exempt Threshold for Salaries
The monthly tax-exempt threshold for salary tax
calculations will rise to RSD 28,423, up
from the previous RSD 25,000.
The next adjustment is scheduled for January 2026,
offering employees greater tax relief on their income.
3. Higher Daily Allowance for Business Travel Abroad
The non-taxable daily allowance for business
trips abroad has been increased to EUR 90, a
significant rise from the previous EUR 50.
This adjustment aims to better align with international travel
expenses and support Serbian businesses operating globally.
4. Extension of Incentives for Newly Hired Employees
Incentives for newly hired employees have been extended to cover salaries paid through December 31, 2025. These include:
- Refunds on a portion of paid salary tax under Article 21v of the Personal Income Tax Law.
- Refunds on a portion of social security contributions under Article 45 of the Contributions Law.
This extension continues to encourage job creation and reduce employer costs, promoting a more dynamic labor market.
These updates reflect Serbia's commitment to refining its tax and social security frameworks to support economic growth and investment. Businesses and individuals should prepare for these changes to ensure compliance and maximize potential benefits.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
