In January 2023, the Ministry of Finance will introduce a new model of taxation of freelancers. The working group dealing with proposals for solving the status of freelancers in Serbia has published a new model by which internet workers should pay taxes in the coming year. 

Most of the proposals were accepted

The Association of Freelancers and Entrepreneurs of Serbia (UFPS), whose representatives are working group members, states that with the new proposal, the Ministry of Finance accepted most of the recommendations made by freelancers’ representatives.

Applications

Thus, in the future, the registration of freelancers for income taxation will be done quarterly. The deadline for reporting quarterly income will be 30 days from the end of the quarter.

Two taxation models

Two taxation models will be available, the first of which includes standardized costs and a lower non-taxable income amount. The second taxation model requires a higher non-taxable amount without recognizing standardized costs.

Incomes of freelancers will not undergo the self-taxation procedure at the end of 2022, but the Tax Administration will deliver decisions to freelancers who earn more than RSD 768,000 annually.