The Regulation on Closer Conditions, Criteria and Elements for Lump-sum Taxation of Self-employed Income Taxpayers (“Regulation“) was adopted in 2020, for the purpose of changing the method of calculating lump-sum income.
According to the Regulation, the taxpayers are classified based on the predominant entrepreneurial activity, and then the starting basis for calculating the amount of income is determined based on the average monthly salary in the republic, city or municipality, the coefficient of activity, as well as the number of employees and the number of inhabitants in the city or municipality.
In this regard, the Regulation included a provision that limits the increase to a maximum of 10% in relation to the amount of tax paid for the previous year, so that the taxes will be gradually increased until they reach the amount that is in line with the new method of calculation.
This protective provision was supposed to be valid until the end of 2022. However, the Government of Serbia extended its duration until the end of 2023 just a few days before the deadline (in the “Official Gazette of the RS”, number 141 of 23 December 2022). New decisions on established tax obligations pursuant to the amended Regulation should be submitted electronically by 23 January 2023. according to the notification of the Tax Administration.
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