Frequently asked questions

At the end of the quarter, within 30 days from the end of the quarter, a tax application is submitted that includes the data on generated income, serving as the basis to calculate taxes and contributions.

You are obliged to de-register from mandatory social insurance within three days from the date of expiry of the contract or employment termination.

You report income from foreign payers in dinar equivalent according to the middle exchange rate of the National Bank of Serbia on the day of income payment, regardless of whether the payment was made in cash, to an account in a commercial bank in Serbia or abroad, or to any other account (for example, Payoneer cards and similar accounts) in Serbia or abroad.

Exceptionally, if the payment of income, made by the foreign payer, to your account in a commercial bank in Serbia was not recorded on the day of income payment, the exchange rate will be recalculated on the day when the payment was recorded on your account in a commercial bank in Serbia.

You recalculate each payment in dinar equivalent at the middle exchange rate of the National Bank of Serbia valid on the day of payment. Then you add together all those amounts and enter the total amount in the PP OPO - K tax application.

There is no limit to the currencies in which you receive payouts. It is only important that you convert the amount realized in foreign currency into dinar equivalent at the middle exchange rate of the National Bank of Serbia valid on the day of payment. Therefore, in the tax application, you should enter the data on generated income in their dinar equivalent.

If you are earning income as a freelancer, while being a beneficiary of family pension, you are obliged to report the income you earn in this manner. If the income generated based on freelance activities is higher than 35,025 RSD (the amount is valid for 2023 limit), the payment of family pension will be suspended.

The obligation to report income generated through freelance work also applies to beneficiaries of other types of pension, noting that the payment of pension is not suspended for these types of beneficiaries.

Additionally, we also point out that other persons who are already insured with pension and disability insurance on another ground (e.g. employees, company founders etc) are obliged to report the income generated as freelancers.

You perform the conversion into dinar equivalent at the middle exchange rate of the National Bank of Serbia valid on the day you receive the payment on your account. If the payment is not recorded on the day of payment, the exchange rate will be recalculated on the day when the payment is recorded on your account in the business bank.

If a natural person concludes an oral service contract with a specific duration with another natural person, the code is 1612 (221), and if he concludes a contract without an agreed duration, the code is 1612 (222). Also, persons who work on the territory of the Republic of Serbia for a foreign employer that does not have a registered representative office in the Republic of Serbia, from whom they receive compensation for the work performed, and are not insured on other grounds, are registered under code 232.

The taxpayer is considered to have earned income when they are paid to him, that is, when he can use them. In the case where the platform (e.g. Upwork) is the payer of the taxpayer, we can basically distinguish two situations regarding the moment of income generation:

1. The platform pays the income directly to the taxpayer without the need for an order from the taxpayer to transfer the funds to the taxpayer's account - in this case, the income is considered to have been realized when it is paid to the taxpayer's account, regardless of which taxpayer's account it is. Therefore, there is no difference in relation to payments from any other payer.
2. The platform informs the taxpayer that he can submit an order for the transfer of income from the platform's account to the taxpayer's account - in this case, the income is considered to have been realized at the moment when the taxpayer received the notification that he can submit an order for the transfer of funds to his account, regardless of which taxpayer's account it is. If the taxpayer immediately submitted an appropriate transfer order for the entire realized income, it will be considered that the income was realized on the day of the transfer of funds to the taxpayer's account in the amount that was transferred to the taxpayer's account.