According to the data published by NALED, in the first quarter of 2024, over 2,700 tax returns were filed through the Freelancers portal.
We herewith remind you that the amendments to the Personal Income Tax Law from 2021 provide that the tax authority determines the tax on income from agreed fees for copyright and related rights and agreed fees for performed work (freelancer income) by issuing a decision. This tax, paid through self-assessment, covers income earned from January 1, 2015, to December 31, 2022, unless the tax obligation determination has become time-barred in accordance with the regulations in effect at the time of income generation, or the tax obligation determination procedure has been conclusively completed, or the tax obligation was paid in accordance with the regulations in effect at the time the tax obligation arose before the law came into force. Income up to 384,000 dinars per year is exempt from taxation, and standardized costs for taxable income are recognized at 50% of the earned income. The tax can be paid in 120 equal monthly instalments, with the first instalment due on the 15th of the month following the month in which the tax authority’s decision was made.
Freelancers are considered to be the following categories of individuals:
- A domestic natural person – a resident of the Republic of Serbia, earning income while working in the Republic of Serbia from a foreign income payer (legal entity, entrepreneur, or natural person) or from a domestic natural person or another entity that does not calculate and pay obligations based on taxes and contributions in the Republic of Serbia when paying the income;
- A domestic natural person – a resident of the Republic of Serbia, earning income while working in another country from a foreign income payer (legal entity, entrepreneur, or natural person) or from another entity that does not calculate and pay obligations based on taxes and contributions in the Republic of Serbia when paying the income;
- A foreign natural person – a non-resident, earning income while working in the Republic of Serbia from a foreign income payer (legal entity, entrepreneur, or natural person) or from a domestic natural person or another entity that does not calculate and pay obligations based on taxes and contributions in the Republic of Serbia when paying the income.
By registering on the portal, freelancers gain the ability to file tax returns based on the income earned that can be included in the freelancer self-assessment regime, as well as generate a payment slip with pre-filled payment information and a QR code, based on which they can settle their obligations.