Government ADOPTS proposal on taxation of FREELANCERS
The Government of Serbia has adopted, through amendments to legal regulations, a proposal for a new manner of taxing freelancers. In order for the bill to enter into force, it must also go through the parliamentary procedure.
The essence is that the non-taxable amount of income for freelancers will be equal to the monthly minimum wage of 32,000 dinars. That amounts to 384,000 dinars annually.
The adopted Bill on Amendments to the Law on Income Tax determines the amount of standard costs based on income from copyright and related rights and the agreed compensation for work performed, on which the tax is paid by self-taxation, the Government of Serbia announced.
The tax return is submitted within 30 days from the end of the quarter in which the income was generated.
“Through the introduced amendments, based on the agreed fee for copyright and related rights and the agreed fee for work performed, on which the tax is paid by self-taxation, and which was generated in the period from January 1, 2015 to September 30, 2021, the tax shall be determined by a decision of the tax authority if the statute of limitations for determining the tax liability has not occurred, if the procedure for determining the tax liability has not been finalized and if the tax liability has not been paid before the entry into force of this Law,” it is explained in the announcement of the Government.
As stated, based on the new legal solution, tax is not paid on personal income realized in a calendar year in the amount of up to 384,000 dinars per year, and part of the income that is above that amount is reduced by the standard costs of 43 percent of the realized income.
“The tax liability on the basis of the stated income is paid in 120 equal monthly instalments. The provisions of the law will apply from October 1, 2021, except for the provision relating to income generated in the period from January 1, 2015 to September 30, 2021, on which the tax is paid by self-taxation, which will apply from the day the law enters into force,” says the Government of Serbia.