Everything you need to know about the amendments of the Individual Income Tax Law


End of the year is approaching, and it seems that the National Assembly is moving full steam ahead. The vote is on the amendments of laws that are important for economy. This is why the time is right to learn about the novelties adopted on the last session of the National Assembly on 06 December 2019.

Namely, among the laws aforementioned, time had come to vote on the Law on Amendments of the Individual Income Tax Law.

Adopted amendments of the law shall come into effect on 01 January 2020. And here is what awaits us in the new year.

What is included in the amendments?

First things first. At the National Assembly session held last week, amendments of the Individual Income Tax Law were adopted, including the following most significant ones.

Instead of current deadline for the submission of flat-rate taxation request for current entrepreneurs that was 30 November, the deadline is moved to 31 October. Adopted amendments include the independency test. The manner in which the tax obligation is calculated and conditions for flat-rate taxation are partially amended.

Remember tax relief for new employees? Against all expectations, even for new employees the validity period for tax relief is extended to the end of 2020. New amendments of the law prescribe a form for the request for return of portion of taxes and contributions on that basis. As of 01 January 2020 the non-taxable portion of the salary is 16,300 instead of current 15,300 dinars. This means that the companies will pay less taxes for employee salaries.

Non-taxable amount paid based on scholarships to students was increased to RSD 30,000, and for the taxpayers new residents a tax relief is introduced regarding salary. Taxpayers new residents are taxpayers that returned to the Republic of Serbia and are residents in it.

All newly formed entrepreneurs need to know

Request for flat-rate taxation may be submitted by newly formed entrepreneurs from the beginning of 2020 by way of registration application registering the company through Business Registers Agency.

New relief shall be applied to eligible new employees, and this refers to persons that did not have the employee status in 2019, that are employed within the first four months of 2020. In this case the employers hiring such persons will be exempt from paying part of taxes and contributions for mandatory social insurance.

Position of the Ministry of Finance was presented in the Opinion issued in 2019, in compliance with the law, determining the payment of costs for employees for commuting based on documented cost, which in practice means that the employee will have to submit a valid accounting document so that the employer is entitled to enter employee costs for commuting properly.


All adopted amendments to the Individual Income Tax Law shall be published in the new issue of the Official Gazette of the Republic of Serbia.

Comments (2)

Katarina Arsenovic on 28.01.2020 21:25

sta spada u verodostojne dokumente za isplatu putnih ,tj. sta je dokumentovani trosak?


SVM SUPPORT on 12.02.2020 14:47

@Katarina Arsenovic,

Oko ovoga u stručnoj javnosti i dalje postoje neslaganja oko mišljenja: deo institucija smatra da je potreban verodostojna računovodstena isprava u smislu Zakona o računovodstvu, a deo da je dovoljan samo fiskalni isečak, slip, potvrda itd.

Mi smo bliži prvom mišljenju, jer je smisao ove izmene zakona baš dokumentovanje troška prevoza nekom vrstom računa.

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