Serbia Tax Agency Clarifies Individual Taxation of Foreign Income

The Serbian Tax Administration Oct. 15 clarified the taxation of foreign income earned by Serbian residents. The agency clarified: 1) the definition of a taxpayer; 2) income tax residency rules; 3) the 20 percent income tax rate and the 25.5 percent social contribution rate on employment income for the calculation of contributions for employed taxpayers; 4) a 10 percent tax rate for the calculation of contributions of unemployed taxpayers; 5) a 25.5 percent and 10.3 percent rate for mandatory pension and compulsory health insurance contributions, respectively, for both employed and unemployed taxpayers; 6) a 0.75 percent rate for unemployment insurance; ...