Taxation of natural persons

Understand the tax obligations that follow your personal income.

Different types of income for natural persons have different tax treatment. KCM provides support with calculating and filing tax obligations, and with tax planning before income, investments or significant transactions.

Schedule a consultation

Freelancers

Quarterly calculation of tax and contributions and a comparison of the two self-assessment options.

Annual income tax

Calculation of the annual liability, deductions and tax-planning options.

Capital, property and other income

Dividends, capital gains, real estate, gifts and foreign income.

KCM recommendation

We analyse the tax treatment before income, an investment or a transaction is realised.

Tax burden assessment

We calculate total liabilities and check whether tax reliefs can be used.

Plan for next steps

We define the required filings, documentation, deadlines and how to proceed.

Who is this service for?

Freelancers and contracted fees
Annual personal income tax
Company owners and dividends
Foreign income
Capital gains and real estate
Gifts and transfers of property

The most common personal tax situations

01

Freelancers and income from work

Natural persons who earn certain income from work, copyright and related rights, and for whom the payer does not calculate tax and contributions, may have a quarterly self-assessment obligation.

There are two calculation options, with different standardised costs, tax rates and contribution calculation methods.

KCM compares both options and determines the total tax liability depending on the amount of income, insurance status, employment, type of income and whether the income was earned in Serbia or abroad.

Two calculation options Taxes and contributions Quarterly return Domestic and foreign income
02

Annual personal income tax

Natural persons whose income exceeds the statutory threshold may have an additional annual personal income tax liability.

We analyse income included in the calculation, statutory deductions and reductions, tax already paid, and the expected total tax liability.

Particular focus is on tax planning before the end of the tax period.

Total income Deductions Tax base Tax planning
03

Alternative investment funds and tax reliefs

Article 89a of the Personal Income Tax Law allows, under prescribed conditions, a tax credit for investments in alternative investment funds.

Before investing, we analyse the expected tax liability, the potential tax credit and the conditions that must be met to use the relief.

Alternative investment funds Tax credit Article 89a Tax planning
04

Dividends and capital income

A dividend that a natural person receives as a company owner is capital income.

When distributing profit we calculate:

  • capital income tax
  • the gross and net dividend amount
  • the tax liability that follows the payout
  • the overall effect of distributing profit to the owner

For dividends from abroad we also analyse tax residence, tax paid in the other country and the application of international treaties.

Dividend Gross/net calculation Capital tax Foreign dividends
05

Capital gains and real estate

The sale of real estate, shares, securities and other assets covered by law may give rise to a capital gain.

We analyse acquisition and sale value, how the asset was acquired, the required documentation and whether statutory exemptions can be used.

For letting real estate we determine the tax treatment of rental income and the filing obligation.

Capital gain Real estate Shares Rent Tax exemptions
06

Gift tax

A gift of money, real estate or other property may have tax consequences.

Tax treatment depends on the relationship between donor and recipient, the type of property and its value.

The basic regime:

first line of succession and spousetax exemption
second line of succession1,5%
other persons2,5%

Before the transfer we also check whether other statutory exemptions apply.

Gift Kinship Tax rate Exemptions
07

Foreign income

For Serbian tax residents, income earned in another country may also create a tax liability in Serbia.

We analyse:

  • the type of income
  • tax residence
  • tax paid abroad
  • the application of international treaties
  • the filing obligation in Serbia
Residence Foreign income Tax credit Double taxation

What do you get from KCM?

Calculation of tax liabilities

We determine the taxes and contributions that arise from the specific type of income.

Tax planning

We analyse the tax consequences before significant decisions are carried out.

Preparation of tax returns

We help with the calculation, preparation and filing of tax returns.

Analysis of tax reliefs

We check whether exemptions, deductions and tax credits can be used.

International taxation

We analyse foreign income and the possibility of avoiding double taxation.

Not sure which tax obligations you have?

Before earning income, investing or making a significant transaction, check the tax consequences and tax-planning options.

Schedule a consultation