Lump-sum taxation is an assumed income taxation system, regulated by the Individual Income Tax Law. A system of lump-sum taxation is provided for entrepreneurs who are engaged in such a business activity, which in many ways makes the bookkeeping difficult.
How to become a lump-sum taxpayer?
First of all, during the registration with the competent Business Registers Agency.
Second of all, during the fiscal year, that is, no later than October 31 of the current year for the following year.
In the first case, after registration in the Business Registers Agency, the entrepreneur receives the decision, so he can access the E-uprava portal with an electronic certificate (non-residents must have a person authorized to work on the portal of the Tax Administration), where in the tax box there will be a decision on determining the amount of personal income tax, as well as a decision on the amount of payment of the compulsory social insurance. It should be taken into account that the date of the publication of the decision is considered to be the date of decision delivery. The tax liability starts on the day of its entry into a corresponding register at the Business Registers Agency, which is, after all, stated in the tax return.
In the second case, entrepreneurs who kept business books according to the double-entry bookkeeping system, if they fulfilled the condition during the fiscal year:
- they are engaged in a business activity for which lump-sum taxation is possible
- they are not in the VAT system
- their total income is less than 6 million dinars in the previous period (period January – September), including the projection of income until the end of the fiscal year
they submit a request for lump-sum taxation via the E-uprava portal for the next fiscal year. So, until the end of the current year, they operate as so-called “bookkeepers” and on the beginning of the next year they receive a decision on the lump-sum amount on the basis of which they will pay personal income tax and compulsory social insurance.
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.
Lump-sum taxation of entrepreneurs – Serbia
For all those who have doubts about the lump-sum, as always you can contact the Creative Finance team.