Frequently asked questions

If you are an entrepreneur whose activity is at rest, you cannot generate income as a freelancer.

In the event that you have agreed in advance to make a certain work/handicraft (for example, jewelry), and sell it online to a customer who is a domestic natural person or a foreign natural or legal person, and who does not have obligations for taxes and contributions in the Republic of Serbia, you can report this income as income you earn as a freelancer. Therefore, you need to independently make certain goods and arrange their sale in advance. If you are engaged in the resale of goods that you did not make, it is not possible to report these incomes as incomes that you earn as a freelancer, because it is a trade (activity).

The income you earn as a freelancer in one quarter is not automatically subject to the highest base for payment of compulsory social security contributions. This means that if the income generated in one quarter is higher than the maximum basis for paying contributions, you will have to pay contributions on taxable income. Only after the end of the year do you have the right to submit a request for a refund of overpaid contributions, but during the year you must pay those obligations regularly. The request for the refund of the overpaid contribution for pension and invalidity insurance is submitted to the competent branch of the Tax Administration according to the place of residence of the natural person.

All payments you receive from your work as a freelancer must be reported as income. The system of self-taxation of freelancers recognizes standardized expenses, for which it is not necessary to prove their existence. Therefore, there are no actual freelancer costs that are recognized, but only standardized costs. Depending on the self-taxation option you opt for, the standard expenses for which you can reduce 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 additionally reduced by 34% of the gross income. In this regard, you need to report income whether paid in money, goods, services or otherwise.

Freelancer income earned in cryptocurrency is reported as freelancer income.

As a freelancer, you cannot get a certificate of employment, because it is not an employment relationship. The document you can get is a certificate of paid taxes and contributions.