The Tax Administration has discovered a high rate of non-compliance with tax regulations among taxpayers who earn their income in or from abroad and has identified these individuals.
The Tax Administration of the Republic of Serbia has called on all persons who failed to submit tax application to do so on their own initiative before taking any action by the tax authority regarding the action or omission, or before initiating tax control or filing a request to initiate misdemeanour proceedings as to avoid misdemeanour liability.
Who is considered a taxpayer?
A taxpayer is a person, a resident of the Republic of Serbia who earns income from work in or from another country. These incomes are realised on the basis of providing various types of services, and most often they are software development services, translation, foreign language classes, promotion, graphic design, etc., as well as individuals who earn income on social networks (influencers, YouTubers…).
How to calculate the Tax?
For the calculation, it is important whether the taxpayer is insured on the basis of employment, i.e. on another basis, or is an unemployed person, i.e. is not insured on any basis.
- If the taxpayer is insured on the basis of employment or other basis in the Republic of Serbia, and has income from work from another country, the base is gross income from work in or from another country is less than the amount of costs prescribed by the Law on Personal Income Tax. The tax rate is 20%. The basis for calculating contributions is the tax base. He is obliged to calculate and pay the contributions only for PIO, at the rate of 25.5%.
- If the taxpayer is not insured on any basis, i.e. when he is an unemployed person in the Republic of Serbia, and his salary is paid in or from another country, the basis for calculating the payroll tax is the paid or realised salary, reduced by the monthly non-taxable amount (non-taxable amount of earnings is adjusted to the annual consumer price index and published in the “Official Gazette of RS”) on which the payroll tax is calculated and paid. The tax rate is 10%. The basis for calculating the contribution is the salary received by the taxpayer. He is obliged to calculate it himself:
- For mandatory pension and disability insurance – 25.5
- For health insurance – 10.3%
- For unemployment insurance – 0.75%
- If the taxpayer is not insured on any basis, i.e. when he is an unemployed person in the Republic of Serbia, and earns other income from work from another country, the tax base is the gross income from work received from another country less the amount costs prescribed by the Law on Personal Income Tax. The tax rate is 20%. The basis for calculating contributions is the tax base. He is obliged to calculate it himself:
- For mandatory pension and disability insurance – 25.5%
- For health insurance – 10.3%
- Filing a tax return
The tax return of the form PP OPO is submitted within 30 days from the day of realisation of income, in electronic form through the portal ePorezi, in which case it is necessary to have an electronic certificate. Internet kiosks in the branches of the Tax Administration can also be used to submit the application. Also, the tax return can be submitted in writing, directly or by mail.
When the tax return of the PP OPO form is submitted, it is necessary to fill in the Form M-UN, in two copies, which is sold to the competent branch of the PIO fund with the concluded contract and proof of payment of the PIO contribution.