The mutual feeling of every solidarity-based and pro-family tax policy lies in tax deductions. They serve as a social corrective of the state. Namely, a person who has 3 minor children certainly has higher necessary monthly living costs than a person who has no dependents – therefore the state mandates that for the exact same job (i.e., the same Gross 1 contract), this person is taxed a SMALLER (reduced) amount so they receive a larger and higher Net amount paid into their account.
Dependent members (or simply: deductions) are formal tax designations of your household members, family members, or relatives (often: dependent children, an incapacitated spouse, or persons with disability statuses according to law tables) whose official personal needs are considered dependent on the income (earnings and profit) of the taxpayer, i.e., the employee and worker who feeds them. These members are entered and recorded in the public tax status on the so-called "Tax Card - PK" Form.
The amount of these personal (non-taxable dependent additions and bonuses) grows and is influenced by a prescribed deduction coefficient that multiplies the very concept of the basic Deduction and grows with geometric dynamics (proportionally) – family pro-natalist support (the second child brings a stronger deduction than the first).
| Category | Monthly Non-taxable "Surplus" Addition in Dinars |
|---|---|
| Dependent member of immediate family (Spouse) | 98.00 RSD (Factor 0.70) |
| For the first child in the family | 98.00 RSD (Factor 0.70) |
| For the second child | 140.00 RSD (Factor 1.00) |
| For the third child | 196.00 RSD (Factor 1.40) |
| All added children after the 4th child (and onwards) grow with each higher jump added geometrically exponentially with a higher factor in the calculation... | |
If your registered child is on your "Tax deduction" on your work tax PK card (as a factor for you), it is important to know that if the child gets a temporary seasonal job in the summer or as a student earns an income HIGHER than the state-mandated limit of total acquisitions at the level of the whole year, then you retroactively lose all acquired rights and dependent legal exempting deductions throughout that entire past year! At the end of the calendar spring filing for the return of excessive income levies to the Tax Administration – you will pay a penal excess calculation debt return in favor of the state budget! Be extremely careful and warn your family.