Adjusted Non-Taxable Dinar Amounts under the Personal Income Tax Act and the Compulsory Social Insurance Contributions Act
Based on Article 12a, Paragraph 3 of the Personal Income Tax Act and Article 65a, Paragraph 2 of the Compulsory Social Insurance Contributions Act, the Government of the Republic of Serbia has published the Adjusted Non-Taxable Dinar Amounts (Official Gazette of RS, No. 8/25), applicable from February 1, 2025 to December 31, 2026.
What are the key updates with these adjustments?
- From January 1, 2025, the non-taxable monthly salary amount will be 28,423 dinars (previously 25,000 dinars). This reduction in overall tax liability can help optimize employer costs.
- Adjustments have been made to the non-taxable amounts for various employee benefits and allowances, including transportation costs, per diems for business trips (domestic and international), jubilee awards, premiums for voluntary health insurance, contributions to voluntary pension funds, and other allowances provided under Article 18 of the Personal Income Tax Act.
- Examples:
-
- The non-taxable transportation cost for commuting is now 5,630 dinars.
- The non-taxable per diem for domestic business travel is 3,380 dinars, while for international travel, it is up to 90 EUR.
- The non-taxable transportation allowance applies under special conditions for employers in Belgrade due to free public transportation starting January 1, 2025.
- These changes and increased non-taxable amounts may require employers to amend their internal regulations or update employment contracts through annexes.
For additional information or consultations, our team at Tasić & Partners is at your disposal.