Flat-rate taxation

Every year, until the end of January, the Tax Office issued a decision for flat-rate entrepreneurs (PAUSAL) for that year.

The monthly tax obligation is the same amount and has the same payment reference number. Tax obligations will not rise more than 10% annually until the end of 2025. After that, we expect new laws.

The flat-rate entrepreneurs’ revenues from issued invoices are limited to 6 million dinars in one calendar year.

The first-year tax basis will be 50% less for all newly registered flat-rate entrepreneurs. They decided that in a registration form submitted to the Serbian Business Registry Agency (APR).

Existing flat-rate taxpayers’ status is automatically extended, meaning the request does not have to be submitted again yearly. Also, if you are “freezing” your status at the APR, that automatically stops your tax obligation going forward.

The Personal Income Tax Law specifies certain activities ineligible for flat-rate taxation. Specifically, individuals engaged in advertising, market research, wholesale and retail trade, hotels, restaurants, financial intermediation, and real estate activities, or those whose actions are funded by others, are not entitled to be flat-rate entrepreneurs.