Surtax – Who pays it and how much?
In countries with such a system, the Surtax on income tax is a mandatory local tax that you pay as an additional burden exclusively to the city or municipality where you have your registered residence (or habitual abode).
How was it calculated?
The surtax was not calculated as a percentage of the total gross salary, but was always calculated as a percentage exclusively on your INCOME TAX amount. That is why it was colloquially called a "tax on a tax".
Formula:
Surtax = (Income Tax Amount) × (Surtax Rate)Example of surtax calculation:
- Let's assume your city's surtax rate is 10%.
- The calculation generated a regular Tax obligation of 200.00 RSD.
- The additional surtax would amount to 20.00 RSD (10% of the amount 200).
- The Total levy for the employee then became 220.00 RSD.
Where and who enacts it?
The surtax percentage rate is usually determined by local city or municipal assemblies/councils. They didn't even have to prescribe it! Large cities traditionally have higher rates, while smaller, prosperous places often abolish it or keep it at 0% to attract population.