Serbia: Measures revising tax treatment of independent contractors

Beneficial tax treatment for the income of freelancers for 2015-2021

Beneficial tax treatment for the income of freelancers for 2015-2021

Legislation in May 2021 revises the rules for the tax treatment of independent contractors (“freelancers”).

The provisions introduce beneficial tax treatment for the income of freelancers for 2015-2021, and certain amendments apply from 2022 allowing freelancers to change their status (for instance, to become entrepreneurs or to start a company).

With regard to income tax, the legislative amendment introduces a tax exemption of up to RSD 384,000 per year for royalties from a copyright and related rights and for remuneration for work performed, for which tax is paid under the self-assessment regime. In addition, for the portion of income that exceeds the exempt threshold amount, the amendment allows for a lump-sum deduction of up to 50% of income.

There are also changes regarding the rules for social security contributions.

Read a May 2021 report prepared by the KPMG member firm in Serbia

 

 

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