Disability deductions (Tax deductions)
The law in Serbia strictly and protectively shields persons with disabilities (PWD) as well as taxpayers who directly care for such people and include them in their tax records as members. The tax system recognizes the higher living costs and reciprocates through significant deduction factors on income tax!
Disability categories in the tax system
The law roughly divides the levels (coefficients) of additional personal non-taxable tax deduction into two key separate groups according to the degree of established impairment.
1Partial disability
A coefficient of 0.40 is applied. It includes persons with a legally established stage of milder but present physical disability.
2100% disability (care by others)
An extremely significant coefficient of 1.50 is applied. Workers and family members who have the right to a permanent allowance for care and assistance by others are eligible under this basis.
Who can the worker claim the disability deduction for?
The disability deduction can be used in two ways:
- The taxpayer themselves: Personal, direct worker's deduction if you are a worker with a disability classification.
- For a child: Cumulatively added to the basic dependent norm (age factor + child's disability factor).
- For dependent parents/spouse: Summing up tax discounts of dependent members with a diagnosis of disability.
Legal evidence: What do you actually need for application?
The Tax Administration requires official evaluation documents from competent institutions (PIO Fund (Pension and Disability Insurance), NHIF (National Health Insurance Fund)). Some of the relevant decisions are:
- Decision on the percentage of physical impairment issued by the competent fund (PIO Fund (Pension and Disability Insurance)).
- Decision of social work centers (allowance for care and assistance of other persons).
- Decision of the competent medical board (NHIF (National Health Insurance Fund)) on the impairment of the child's health.
- Other decisions of the competent fund if the person formally meets the right according to a special law.
Tip: Income based on disability or assistance by others does not count towards the strict annual income threshold of a dependent person. This is an exception in the law!