Frequently asked questions
Everything you wanted to know about the portal www.frilenseri.purs.gov.rs and taxes can now be found in one place.
Look for more information and documents for using the portal and reporting taxes at the following links:
WHICH SPECIFIC ACTIVITIES I MAY AND MAY NOT PERFORM AND REGISTER THROUGH THE PORTAL?
The law does not impose limitations on the types of activities (which are permitted by law) that can be subject to self-taxation regime, so you are not obliged to declare in your tax application the type of activity that was the basis for the payment and the arising tax liability.
The mentioned activities can include both income from copyright and related rights, as well as income from service contracts or any other type of work engagement, provided that the payer belongs to the group of persons that can make payments to freelancers (foreign legal and natural persons and domestic natural persons, i.e. other persons that, when paying income, do not calculate and do not pay withholding tax and contribution obligations in the Republic of Serbia), as well as that they did not hire you in accordance with the Labor Law (an employment contract or a contract on temporary and occasional jobs concluded in accordance with that law). Also, it is irrelevant whether the payment is based on a written or oral contract with the payer.
Examples of income that a freelancer earns and that serve as the basis to considered them a freelancer:
Income based on cleaning and maintenance of buildings, repair and maintenance of various types of machines and devices (electrician, plumber...), various types of physical work (carpenter, painter...), making art paintings, busts, sculptures, sculptural and other works of art, photographic work, architectural projects, construction projects and technical drawings, design projects, audio-video recording, provided that the freelancers do not at the same time perform an independent activity (they are not registered as entrepreneurs, that is, they are not independent artists); or a physical person providing fitness services (e.g. individual fitness instructors providing training for certain sports); or a natural person who provides the service of translating or giving foreign language classes to another natural person; or a natural person engaged in making homemade cakes and pies for another natural person; or a natural person engaged in the production of various types of souvenirs, crocheted products, home-made products for another natural person; or any activity or action that is provided by one natural person to another natural person and the recipient of the service does not have the obligation to calculate and pay withholding taxes and contributions.
SHOULD I USE THE PORTAL TO REPORT INCOME PAID IN CASH?
Through the portal, you report income paid in money, goods, services, deeds or otherwise.
SHOULD I USE THE PORTAL TO REPORT INCOME RECEIVED BY PAYERS FROM ALL COUNTRIES IN THE WORLD, OR ARE SOME COUNTRIES EXEMPT?
You can report income from payers from all countries in the world. It is only important that you convert the amount realized in foreign currency into the equivalent amount in dinars at the middle exchange rate of the National Bank of Serbia, valid on the day of payment. Alternatively, in accordance with the Law on Tax Procedure and Tax Administration, if the National Bank of Serbia does not have the middle exchange rate of that currency for the Serbian dinar, the amount realized in foreign currency is converted at the market rate based on published data on the ratio between the foreign currency and the US dollar, on the day of transaction. Therefore, in the tax application, you should enter the data on income expressed in dinar equivalents.
IS THERE A MAXIMUM NUMBER OF PAYERS WHOSE PAYMENTS I CAN REPORT THROUGH THIS PORTAL?
There is no maximum number of payers whose payments you report through the portal. The tax application is submitted for all income (payments) that you made as a freelancer in the previous quarter.
IF I WORK AS A SEASONAL WORKER IN AGRICULTURE, DOES THE EMPLOYER PAY OBLIGATIONS THROUGH THE SEASONAL WORKERS PORTAL OR DO I CALCULATE AND PAY THEM THROUGH THE FREELANCERS PORTAL?
The employer (legal entity, entrepreneur or natural person) has the obligation to calculate and pay the contributions through the portal www.sezonskiradnici.gov.rs, so you have no obligation to report the income generated on that basis.
WHAT IS SELF-TAXATION?
Self-taxation is a tax regime in which the Tax Administration does not issue a decision that serves as the basis of which you pay taxes and contributions, but you yourself calculate, report and pay tax on the income generated.
THE LAW PROVIDES TWO SELF-TAXATION OPTIONS - WHAT ARE THE DIFFERENCES BETWEEN THESE TWO OPTIONS?
You report and pay your obligations quarterly, with the possibility to choose one of the two methods of self-taxation within each accounting period, i.e. quarter, which are shown in more detail in the table below.
Option 1 |
Option 2 |
Standardized expense deduction: 96,000 RSD in a quarter. Tax: 20% - The tax base is made up of the gross income realized in the quarter minus the standardized expenses. This means that if you earn up to RSD 96,000 in a quarter, you will not have to pay taxes. Contributions for pension and disability insurance (PIO) 24% - The basis for the payment of PIO contributions is the gross income realized in the quarter minus the standardized expenses. This means that if you earn up to RSD 96,000 per quarter, you will not have to pay contributions for pension insurance. Health insurance contributions 10.3% - If you are not a primary holder of health insurance on some other basis (e.g. as an employee or according to an international agreement), you are obliged to pay health insurance. The rate of 10.3% is applied to three times the base amount of 15% of the average monthly salary in the RS, which means that the minimum amount to be paid is RSD 4,789 for the quarter. If this base is lower than the taxable income, the taxable income will be calculated as the basis for payment of contributions. |
Standardized expense deduction: 57,900 RSD in a quarter, increased by 34% of gross income generated in the quarter. Tax 10% - Taxable income is equal to gross income minus standardized expenses. This means that if you generate less income in a quarter than the amount of taxable income, you will not have the obligation to pay tax. Contributions for pension and disability insurance (PIO) 24%: If you opt for this option, the PIO contribution is mandatory. The basis for paying contributions for PIO is at least three times the amount of the lowest monthly contribution basis. This means that you will have to pay at least RSD 25,218 for the PIO contribution on a quarterly basis. If the basis is lower than the taxable income, the taxable income will be calculated as the basis for payment of contributions. Health insurance contributions 10.3% - If you are not a primary holder of health insurance on some other basis (e.g. as an employee or according to an international agreement), you are obliged to pay health insurance. The rate of 10.3% is applied to three times the base amount of 15% of the average monthly salary in the RS, which means that the minimum amount to be paid is RSD 4,789 for the quarter. If this base is lower than the taxable income, the taxable income will be calculated as the basis for payment of contributions. |
Example 1: quarterly income RSD 60,000 Basis for payment of taxes and contributions = 60,000 – 96,000 =RSD 0 TAX = RSD 0 PIO = RSD 0 Health = RSD 0 if you have health insurance or RSD 4,789 if you don’t have health insurance. Total: RSD 0 or 4,789 |
Example 1: quarterly income RSD 60.000 Basis for payment of taxes and contributions = RSD (60,000-(57,900+60,000*34%) Tax = RSD 0 PIO = RSD 25,218 Health = RSD 0 if you have health insurance or RSD 4,789 if you don’t have health insurance. Total: RSD 25,218 or 30,007 |
Example 2: quarterly income RSD 100,000 Basis for payment of taxes and contributions = 100,000 – 96,000 = RSD 4,000 Tax = 4,000 x 20% = RSD 800 PIO = 4,000 x 24% = RSD 960 Health = RSD 0 if you have health insurance or RSD 4,789 if you don’t have health insurance. Total: RSD 1,760 or 6,549 |
Example 2: quarterly income RSD 100,000 Basis for payment of taxes and contributions =(100,000-(57,900+100,000*34%)=RSD 8,100 Tax = 8,100 x 10% = RSD 810 PIO = RSD 25,218 Health = RSD 0 if you have health insurance or RSD 4,789 if you don’t have health insurance. Total: RSD 26,028 or 30,817 |
Example 3: quarterly income RSD 180,000 Basis for payment of taxes and contributions = 180,000 – 96,000 = RSD 84,000 Tax = 84,000 x 20% = RSD 16,800 PIO = 84,000 x 24% = RSD 20,160 Health = RSD 0 if you have health insurance or RSD 8,652 if you don’t have health insurance. Total: RSD 36,960 or 45,612 |
Example 3: quarterly income RSD 180,000 Basis for payment of taxes and contributions = (180,000-(57,900+180,000*34%) = RSD 60,900 Tax = 60,900 x 10% = RSD 6,090 PIO = RSD 25,218 Health = RSD 0 if you have health insurance or RSD 6,273 if you don’t have health insurance. Total: RSD 31,308 or 37.581 |
Example 4: quarterly income RSD 300,000 Basis for payment of taxes and contributions = 300,000 – 96,000 = RSD 204,000 Tax = 204,000 x 20% = RSD 40,800 PIO = 204,000 x 24% = RSD 48,960 Health = RSD 0 if you have health insurance or RSD 21,012 if you don’t have health insurance. Total: RSD 89,760 or 110,772 |
Example 4: quarterly income RSD 300,000 Basis for payment of taxes and contributions = (300,000-(57,900+300,000*34%) = RSD 140,100 Tax = 140,100 x 10% = RSD 14,010 PIO = 140,100 x 24% = RSD 33,624 Health = RSD 0 if you have health insurance or RSD 14,430 if you don’t have health insurance. Total: RSD 47,634 or 62,064 |
HOW OFTEN CAN I CHANGE TAXATION OPTIONS?
In each quarter, you have the right to opt for the taxation option that suits you better according to the amount of income and the social security rights you want to achieve.
HOW MUCH IS THE INCOME TAX BURDEN BASED ON THESE TWO OPTIONS?
Quarterly income |
60,000 RSD |
100,000 RSD |
160,000 RSD |
180,000 RSD |
300,000 RSD |
500,000 RSD |
Option 1 |
8% |
6,6% |
21,7% |
25,3% |
36,9% |
43,9% |
Option 2 |
50% |
30,8% |
21,8% |
20,9% |
20,7% |
24,1% |
* The calculations were made on the assumption that you do not have health insurance, which means that the level of the tax burden may be lower.
WHAT ARE STANDARDIZED EXPENSES?
Standardized expenses are a prescribed amount that is deducted from total (gross) income, in order to reach the tax base.
Depending on the self-taxation option you select, the standardized expenses you can deduct from your tax base for the period of one quarter amount to RSD 96,000 (option 1) or RSD 57,900 (option 2). In addition, in option 2, the tax base is further reduced by 34% of the gross income.
The formulas are as follows:
Option 1:
Taxable income = total income - standardized expenses
4,000 RSD = 100,000 RSD – 96,000 RSD
Option 2:
Taxable income = total income - (57,900 RSD + total income * 34%)
8,100 RSD = 100,000 RSD – (57,900 RSD + 100,000 * 34%)