Frequently asked questions

For the purpose of this Guide, the term freelancer will be used for three categories of persons:

• domestic natural person – resident of the Republic of Serbia, generating income by working in the Republic of Serbia, with income paid by a payer abroad (legal entity, entrepreneur or a natural person) or a domestic natural person, or another person that is not subject to calculation and payment of taxes and contributions in the Republic of Serbia when paying income;
• domestic natural person - resident of the Republic of Serbia, generating income by working in another country, from a payer from abroad (legal entity, entrepreneur or a natural person), or another person that is not subject to calculation and payment of taxes and contributions in the Republic of Serbia when paying income;
• foreign natural person – non-resident, generating income by working in the Republic of Serbia, with income paid by a payer abroad (legal entity, entrepreneur or a natural person) or a domestic natural person, or another person that is not subject to calculation and payment of taxes and contributions in the Republic of Serbia when paying income.
  o   We highlight that the term „freelancer“ is not a legally defined term, hence it will not be found in any official regulation.

For the purpose of creating this Guide, the term „freelancer“ is used in an informal sense, for natural persons generating income from persons that are not subject to calculation and payment of taxes and contributions in the Republic of Serbia when paying income.

Abroad, the term freelancers is colloquially used for natural persons who are not officially employed by an employer, but perform jobs and activities based on and in accordance with a written or oral engagement contract.

On 9 December 2022, the National Parliament of Serbia adopted the Law on amendments to the Law on Personal Income Tax („Official Gazette of RS“ No. 138/22) that regulates the self-taxation of freelancers.

The Law on Personal Income Tax does not define the term freelancer, but prescribes the obligation of self-taxation, models of self-taxation and the manner of fulfilling the tax obligation.

Therefore, the Law on Personal Income Tax contains provisions that govern:

• self-taxation obligation for freelancers – Article 100a, Paragraph 1, Item 2) Sub-item (1) and Paragraph 2 of the Law on Personal Income Tax;
• standardized deduction amount the freelancer is entitled to, in RSD amount – Article 12Б Paragraph 1 and 2 of the Law on Personal Income Tax, and;
• the manner (models) of freelancers’ self-taxation – Article 55 Paragraph 2, Article 56 Paragraph 2, Article 58 Paragraph 2; Article 85 Paragraph 5 Item 2); Article 86 Paragraph 2 Item 2), Article 95 Paragraph 7, Article 100a Paragraph 7 and 8 of the Law on Personal Income Tax.

Additionally, Article 28 of the amendments to the Law on Contributions for Mandatory Social Insurance prescribes the basis for calculating and paying the contributions for mandatory pension and invalidity and healthcare insurance.

Download: Law on Personal Income Tax

Download: Law on Mandatory Social Insurance Contributions

By registering on the web portal www.frilenseri.purs.gov.rs (hereinafter: web portal) you are not acquiring any status, but a possibility to:

1. submit tax application based on generated income that can be included in the freelancers’ self-taxation regime;

2. generate a payment slip with pre-filled payment data and a QR code, that serves as a basis to settle your liabilities.

If you have not generated any income in one or more quarters, you are not obliged to submit a tax application or pay taxes and contributions.

Any adult natural person, resident and non-resident, can register on the portal, including:

• unemployed persons, regardless of whether or not they are registered with the National Employment Service records;
• old-age pension beneficiaries (pensionable employment);
• students;
• employed persons – for the part of income they are generating outside of their employment;
• owners or co-owners of a business entity – for the part of income they are generating as natural persons;
• employees on maternity leave and child care leave – for the part of income they are generating outside of employment;
• entrepreneurs – for the part of income that is not included in the income based on self-employment in accordance with Articles 37v and 40 Paragraph 5 of the Law on Personal Income Tax under the condition that the real payer of this income is a person that does not have the obligation of paying withholding taxes and contributions in the Republic of Serbia, and that the basis for such payment is direct work performed for a person that is not obliged to pay withholding taxes and contributions in the Republic of Serbia. It should be noted that, if a person directly or indirectly remiburses the paid expenses from a person obliged to pay taxes and contributions in the Republic of Serbia, it shall not be deemed a real payer of income that is not obliged to pay taxes and contributions in the Republic of Serbia

Please note that, in addition to your eligibility (as a natural person) for registering on the portal www.frilenseri.purs.gov.rs and reporting income, it is also important to check whether each individual income you intend to report meets the conditions to be subject to self-taxation according to this regime. For example, despite paying taxes and contributions for the income generated as a freelancer, you cannot report income earned through a youth or student cooperative on this basis.

Non-residents, i.e. foreigners who earn income in the Republic of Serbia, can submit a tax application for their income using this portal. The pre-requisite is that you have a foreigner’s registration number or a tax identification number. Therefore, you don’t need a work permit in order to register as a freelancer and report income under the self-taxation regime, for income generated in the Republic of Serbia from a foreign payer or a domestic natural person, or other person that does not calculate and pay the withholding taxes and contributions in the Republic of Serbia.

If you are a minor, you can be registered as a freelancer on the portal by your parent, or adoptive parent or guardian, in the capacity of legal representative. This person shall also submit tax applications for self-taxation on your behalf.

You are also obliged to register for mandatory pension and invalidity insurance, if the amount of your generated income creates such obligation, and if you are older than the age of 15.

Persons deprived of business capacity are also taxpayers if they are earning income, and in that sense, there is no obstacle to them submitting tax applications and reporting their income via portal for the purpose of self-taxation.

Submitting tax applications and reporting income for the purpose of self-taxation, in the case of persons deprived of business capacity is performed by:

• the person themself, if they are partially deprived of business capacity (Article 147 of the Family Law), while there are no obstacles to this being performed by their guardian;
• a guardian appointed by a guardianship authority, if a court decision deems such person completely deprived of business capacity (Article 148 of the Family Law).

Please note that business capacity of an adult can be taken away or restored only by a court decision in a non-litigation procedure (Article 149 of the Family Law), and that a guardian of a person deprived of business capacity is appointed by a decision of a guardianship authority, i.e. the Social Care Center (Article 125 of the Family Law).

The income one earns as a freelancer is not subject to the independence test.

In accordance with Article 100a, Paragraph 1, Item 2) sub-item (1) and (3) and Paragraph 2 of the Law on Citizens' Income Tax through the portal www.frilenseri.purs.gov.rs, a freelancer can submit a tax return for income paid to them by:

• a legal entity from abroad (a company; non-government organization; international organization; foreign country; foreign local government body, diplomatic or consular representation of a foreign country and international organization, etc.);
• an entrepreneur from abroad (a natural person who has a registered activity abroad: e.g. programmer; translator; lawyer, etc.);
• a natural person from abroad (foreign citizen, regardless of whether or not they reside in the Republic of Serbia);
• a domestic natural person;
• another person who, when paying income, does not calculate and does not pay withholding tax and contribution obligations in the Republic of Serbia.

 The portal www.frilenseri.purs.gov.rs should not be used to submit tax application for the income a freelancer receives from entities that, according to Article 99 of the Law on Citizens' Income Tax, have the obligation to calculate and pay withholding taxes and contributions. These include the following types of payer:

• domestic legal entity (company, citizens' association, public administration body, state body, etc.);
• domestic entrepreneur (a natural person who has a registered activity in the Republic of Serbia, that is, an entrepreneur or a flat-rate entrepreneur);

a branch or representative office of a foreign legal entity registered in the Republic of Serbia (permanent business unit), because that entity has the obligation to calculate and submit a withholding tax application according to tax regulations.