Deductions for other dependent family members
The law in Serbia allows taxpayers to link other immediate family members who have no income of their own or whose income is extremely low to their tax card, in addition to children. In this way, the worker ensures an increase in their personal deduction and, consequently, receives a larger net salary payment.
Who exactly can we register as dependent members?
To be legally considered a <strong>dependent immediate family member</strong>, that person must meet strict tax definitions of kinship. This category includes:
- Spouses and common-law partners
- Parents of the taxpayer
- Spouse's parents
- Blood relatives in the direct line and in the collateral line up to and including the third degree (brothers, sisters, grandmothers, grandfathers)
- Step-parents supported by an adult step-child
- Former spouses for whom the taxpayer pays alimony
Strict income limit - Key obstacle
There are local amount limits!
A person can be considered your dependent member only (and exclusively) if their annual taxable income, tax-free income, and all other income in a calendar year do not exceed the strict legal threshold.
Many workers register their unemployed spouses without thinking about their fees, dividends, or sick leave payments at the expense of state insurance (NHIF (National Health Insurance Fund)). If the spouse breaks that annual threshold, the worker loses the right to deduction for that year, and the Tax Administration will later request a repayment of the debt!
Deduction amount (Coefficient)
A fixed tax deduction coefficient of 0.70 is assigned for a dependent immediate family member.
Real-life example
Ivan has a gross salary of 100,000 RSD. His wife Ana is currently unemployed. Ivan uses the eUprava digital system and links his wife as a member on the Poreska prijava. An additional "shield" is calculated for him, which leaves him with a significantly higher net salary every month.