Serbia

Registrations and Establishing an Entity

The company should register with the Pension Insurance Fund, Business Registers Agency and Tax Administration.

The key legislative authority in Serbia is the Republic Tax Administration, situated at Save Maškovića 3-5, Belgrade.

Working Week

The working week in Serbia is Monday to Friday. The general working hours for commercial offices in Serbia is between 0900 and 1700 hours.

Tax & Social Security

The tax year runs from 1st January to 31st December.

Type of Fees

• Tax on salary is applied with a tax-exempt threshold of 28.423,00 RSD
• The lowest monthly contribution base is 45.950,00 RSD and the highest is 656.425,00 RSD, effective from 01.01.2025 until 31.12.2025
• Income from domestic travel allowances is tax-free up to RSD 2,241.00
• For international travel, the maximum tax-free amount is 90 euros/day (pending confirmation for 2025)
  
  

Income Tax

Tax-free amount for last year 4,269,564 dinars. Amount for the 2025 will be published additionally.

Deadlines and Penalties

• Annual income tax returns must be submitted by May 15
• Late payment penalties: RSD 100,000.00 to RSD 2,000,000.00
  
  

Social Security Contributions

• Monthly contributions are due on the 30th of the current month for the previous month
• Late submission penalties: RSD 100,000.00 to RSD 2,000,000.00
  
  

Tax Refund Incentives

• Micro or small companies hiring at least two workers after 31st October 2015 can receive up to 75% refund on taxes and contributions until 31st December 2017

Reporting

Monthly

PPP-PD form
This form is required to report paid taxes and social insurance (on a monthly and annual basis)

Yearly

PPP-PO form

• Due: 31st January for the previous year
  
  
• Issued to employees and used for annual income tax calculation
  
  

All documents are sent to the Tax Administration. They may be submitted by the client or a payroll partner, but must be signed by the client.

Payroll

• Online payslips are permitted
  
  
• A registered number is required to process payroll
  
  

Reports

Payroll reports must be kept for between five and ten years depending on the type of report.

New Employees

• Must be registered with the Pension and Insurance Fund and Health Insurance
• Registration must be completed before employment begins
  
  

Details required:

• ID
• Employment Agreement
  
  

Leavers

• Final dues must be paid within 30 days from the employment termination date
• Employees must be de-registered from Health and Pension Insurance Funds within three days

Holiday Accruals

• Holiday payment = average hourly salary over the past 12 months × number of holiday hours
• Alternatively: 100% of regular salary as defined by the Labor Rulebook
  
  

Maternity Leave

• 18 months of average base salary
• Paid by the Health Insurance Fund of the Republic of Serbia
• Employer receives the funds and must transfer to employee’s account
  
  

Paternity Leave

• Entitlement is the same as maternity leave
  
  

Sickness

• Sick leave ≤30 days: 65% of average hourly salary × sick leave hours (paid by employer)
• Sick leave >30 days: Paid by the State (NAV), varies by phase and wage cap
  
  

National Service

• Serbia abolished compulsory military service on 1 January 2011
  
  

Employee Benefits

Travel Allowance – Domestic:

• RSD 2,349.00 (max tax-free)
  
  

Travel Allowance – International:

• Max 50 EUR/day (per Serbian Government regulations)
  
  

Mileage Reimbursement – Business Use of Private Car:

• Max 30% of petrol cost × liters used
• Max tax-free amount: RSD 6,850.00/month

Visas & Work Permits

• From January 2016, new legislation regulates overseas business trips and assignments
  
  
• Max duration: 30 continuous days or 90 days/year (non-continuous)
  
  

Work Permit Requirements

As Serbia is not a member of the EU/EEA, all foreign nationals require a work permit

Steps:

1. Obtain a “White card” (residence address registration) within 24 hours of arrival (from Municipal Police Station)
   
   
2. Apply for a Residence Permit within 3 days of arrival
   
   
3. Submit employment contract (translated into Serbian)
   
   
4. Submit employer justification letter
   
   

Residence Permit is required before employment can begin.
Work Permits are issued for 6 months and are renewable for 1 year

All official documents must be translated into Serbian.

• All payroll payments must be made from an in-country RSD bank account
• Typical commercial banking hours:
  
  • Weekdays: 08:00–16:00
• • Branches: 09:00–17:00 (Mon–Fri), 09:00–13:00 (Sat)
• Work week: Monday to Friday
• Payroll and tax reporting is coordinated with the Republic Tax Administration in Belgrade
• The legal currency is the Serbian Dinar (RSD)
• Payroll reports must be retained for between five to ten years
• All forms (PPP-PD, PPP-PO) must be signed by the client, even if submitted by a partner
• Travel reimbursement, allowances, and sick leave tax treatments are tightly regulated and documented
  
  

Further Information

For more information, or assistance with Serbian Tax inquiries please contact: gi@activpayroll.com

About This Payroll and Tax Overview

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.