The Law on Amendments and Supplements to the Law on Citizens' Income Tax was adopted

On December 9, the National Assembly adopted the Law on Amendments to the Law on Personal Income Tax ("Official Gazette of RS" No. 138/2022), which defines the tax treatment of persons (freelancers) who pay taxes and contributions from income through self-taxation. In particular, a freelancer is a natural person who earns income from copyright and related rights and income based on the agreed fee for the work performed, on which tax is paid through self-taxation. Thus, Article 85, point 18 of the Law provides for the payment of taxes and contributions from income through self-taxation, and income is defined as income from copyright and related rights and income based on the contracted fee for work performed, on which tax is paid through self-taxation. With this, the temporary solution for the taxation of freelancers, which was in force for two years, was repealed, and the adopted Law is the result of an agreement reached within the Working Group for the preparation of proposals regulating the status of freelancers, of which NALED was a member.

Persons who earn income from copyright and related rights or on the basis of an agreed fee for work performed, on which tax is paid through self-taxation, can opt for one of two taxation models. Thus, they can decide on the method of determining the tax base and with it the amount of tax liability, whether they decide to recognize standardized costs in the amount of 96,000 dinars per quarter and pay taxes at a rate of 20%, or to decide to recognize standardized costs in the amount of 57,900 dinars, increased quarterly by 34% of the gross income realized in the quarter and payment of tax at the rate of 10%. This solution gives the opportunity for taxpayers to choose a model/method of determining the tax base for each quarter, independent of the base they chose for the previous quarter, which ensures that they can tax plan and optimize their tax obligations, and at the same time it simplifies tax liability settlement procedure and the taxpayer's expenses are reduced.

Also, on the initiative of NALED, a proposal was adopted that freelancers with low incomes can get health insurance for about 1,400 dinars per month, while the minimum monthly basis for paying social security will amount to 8,406 dinars. This is regulated by the adoption of the Law on Amendments to the Law on Contributions for Mandatory Social Insurance ("Official Gazette of RS" No. 138/2022). Finally, representatives of NALED, in cooperation with the Tax Administration, are working on the development of the portal www.frilenseri.purs.gov.rs through which a natural person will submit an application in which he will present the same data as according to the current desicion, but he will calculate and pay the tax liability based on thath desicion himself. With the creation of the portal, it will be significantly easier for taxpayers to fill out and submit the application, the costs for taxpayers and the tax administration will be reduced, and payments will be made in a shorter period of time.

Source: startech.org.rs