According to the Personal Income Tax Law, tax-free amounts are adjusted every year according to the consumer price index from the previous year.
In line with the 2022 consumer price index, the non-taxable dinar amounts that will be valid for certain payments from February 1, 2023, to January 31, 2024.
For instance, if 70,000 dinars are paid for solidarity assistance, the non-taxable amount is 50,173 dinars, while the sum of 19,827 dinars is taxed.
In order for a payment to be considering solidarity assistance, it needs to be accompanied by the relevant supporting documentation, which proves the stated purpose of the payment.
When it comes to financial assistance in the event of an illness, an invoice or estimate for the costs of treatment or surgery has to be submitted, while in the event of the death of an employee’s family member, a death certificate and other supporting documentation should be submitted. When it comes to student loans and scholarships, a scholarship agreement and student certificate of the scholarship holder are required.
As far as documented commuting costs go, the non-taxable amount is 5,017 dinars, and the non-taxable amount of domestic per diems is 3,012 dinars.
As far as commuting fees for business trips, the non-taxable amount as of February 1 will be 8,782 dinars.
This year, employers can give more expensive Christmas gifts to employees’ children under the age of 15 as gifts worth up to 12,544 dinars are exempt from taxation. Also, private pension instalments up to the amount of 7,529 dinars are exempt from taxation too.
(Biznis i Finansije, 19.01.2023)
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