From January 1, freelancers have two models of taxation
The final solution that should regulate the status of freelancers is on the horizon. Two models of taxation are planned.
All those who until now earned money by working on the Internet for foreign and domestic clients, and did not have a registered activity (flat-rate agency or d.o.o.), encountered the problem of taxation, which resulted in the formation of several associations, but also in discussions with the Government about solving the status of 'freelancer', which has been going on for more than two years.
All this should change from January 1, if both parties agree, thanks to the proposed changes to the Law on Personal Income Tax, which should enable the payment of taxes according to two models. As reported by RTS, if the changes are adopted by the Government, they would enter into force already at the beginning of 2023.
The first model covers all freelancers who earn up to RSD 96,000 per quarter. They will not pay any taxes and contributions, except for health insurance, which will amount to 1,400 dinars per month. If the individual who chooses the first model exceeds that 96,000 dinars, he will be obliged to pay PIO, health and income tax.
The second model is intended for freelancers who have more frequent and higher incomes. The non-taxable part amounts to 19,300 dinars per month, i.e. 57,900 per quarter, while 34% of standardized costs will be deducted from the gross income - operating expenses, electricity, internet. 10% income, health and pension tax will be paid on the remaining amount.
The retroactive settlement of levies is cancelled
When everything is calculated, the total levies on the state according to the second model will amount to about 20% of the revenue. This amount includes tax for health and pension insurance, as well as income tax.
Uroš Radenković, legal representative of the Association of Freelancers and Entrepreneurs of Serbia, told RTS that freelancers will not have to register in the APR or any other registry, but will settle their obligations through a special portal that the Government will provide, on which they will be able to choose a taxation model.
It is necessary to point out that the health insurance paid by freelancers will last for six months and in this way other family members will be able to be insured as well.
On the other hand, Dragan Agatunović from the Tax Administration expects the first tax returns for freelancers to be submitted in April 2023 and for the first quarter of the following year. Moreover, the Tax Administration, on the basis of the law that will be adopted, is preparing to enable the submission of that application and taxation in accordance with the law with IT support.
Also, the question of how and in what way the Tax Administration will monitor who has paid tax and who has not remains unclear. The tax payment decisions that the Tax Administration started sending two years ago for outstanding levies retroactively, which sparked protests by freelancers, will be cancelled.
With the new legal solution, the status of freelancers will be regulated after two years of negotiations with the Government of Serbia. Amendments to the law on personal income tax and the law on contributions for mandatory social insurance should be in the parliamentary procedure in the coming weeks. Upon their adoption, a by-law will be adopted that will regulate the taxation of freelancers in more detail.
Source: netokracija.rs