However, if a physical person earns more than 3 times of an average salary, they are also liable for an additional annual income tax, which has two "brackets".
As the second "bracket" , if a person earning six times the average salary, an additional 15% is applied on top of the previously described taxes.
[3] Obligatory contributions for state funds by an employee (up to a certain amount) include:[5] Obligatory contributions for state funds by an employer (also capped) include: The effective personal income tax rate is therefore somewhere in the range 20–41%.
However, it has been noted that Serbian government and government-controlled media have frequently falsely claimed that the annual income tax is a synthetic tax that encompasses all possible types of incomes, even going so far as to baselessly proclaim that the person paying the most annual income tax in a year is "the richest man in Serbia",[7] thus hiding the underdevelopment and uncertainty of the tax law in Serbia and the growing income disparity.
In reality, virtually none of the controversial oligarch-like financiers in Serbia (such as Milan Radoičić and Miroslav Mišković) living in obvious wealth pay the annual income tax, because their wealth is derived from capital and not encompassed by either the payroll or income taxes.