Blog - Creative Finance

The concept of TIN, its use in the procedure and documents into which it is entered, the taxpayers who are required to have a TIN, the procedure, method, and deadlines for its determination, as well as the reasons for TIN revocation, are all outlined in the Law on Tax Procedure and Tax Administration, the Rulebook on Tax Identification Number, and the Rulebook on the Allocation of Tax Identification Number to legal entities, entrepreneurs, and other entities for whose registration the Business Registers Agency is competent...

In December 2019, the National Assembly of the Republic of Serbia adopted the amendments to the Personal Income Tax Law, which introduces, among other things, the entrepreneur independence test. One of the aims of this amendment to the above-mentioned Law is to make a distinction between an “independent“ and “dependent“ entrepreneur, by taxing a “dependent“ entrepreneur's income from the services he or she performs for an unofficial employer at a greater rate than an “independent“ entrepreneur's income from their own self-employment activities.

the best option for everyone who understands the need to define their business legally, regardless of the type of business activity they are involved in, is to choose to become an entrepreneur. Of course, this is presuming that the three essential criteria for every company idea—feasibility, desirability, and profitability — have been met. The registration procedure itself takes place at the competent Business Registers Agency (abbreviated APR in Serbian), and since 2018 it can also be done electronically. The procedure itself consists of submitting...

The salaries of employees is a challenge which all employers face, because on one hand it represents a relationship between the employer and his or her employees, but on the other, a relationship between the employer and the state. The Labour Law regulates the relationship between the employer and the employee, and the Personal Income Tax Law, as well as the Law on Mandatory Social Security Insurance govern the relationship between the employer and the state...

As there are conditions that must be met in order to become a lump-sum entrepreneur, there are also conditions that must be met in order to remain in this status. The first condition refers to the annual income, and the second - to the total turnover for one year continuously. The first limit is 6 million, the second is 8 million and it means the entry into the VAT system.

The entrepreneurs, who meet the requirements necessary to pay the lump-sum self-employment income tax shall submit an online request for lump-sum taxation for the following year via the Tax Administration portal no later than October 31st of the current year.    

As of May 1, 2022, companies and entrepreneurs engaged in internet sales are obliged to issue a fiscal invoice for each sale. This obligation also applies when delivering through an intermediary, and it does not depend on whether the merchant is VAT registered, how he charges for sales, etc...

  According to the provisions of the law regulating companies, a representative office of a foreign legal entity is not a legal entity. According to the provisions of the law regulating corporate profit tax, it is not a permanent establishment (it does not perform an activity, only preparatory activities and the activities that precede contract conclusion) and it does not keep business records in accordance to the accounting regulations....

In practice, we can often hear the statement of the founder-owner of a business company who thinks, "It's my company, I can do whatever I want". But, is it so?

Withholding tax is the tax amount that is kept by income or profit payers and transferred to the tax authority account on behalf of taxpayers. When we are talking about withholding tax in regard to the Law, what we have in mind is the technique of income tax collection in the country where a non-resident has gained the income or, in this particular case, in the Republic of Serbia.