Cap on Increase of Tax Obligations Extended for Lump-Sum Taxpayers Until the End of 2025

The Government of Serbia has extended the cap on the increase of the tax base for lump-sum taxpayers of 10% a year at the most until the end of 2025. This measure was introduced with the amendment to the Decree on Lump-Sum Taxation, which came into effect on October 28.

– For many of around 120,000 lump-sum taxpayers in Serbia, this is a facility for further business operations – says Irena Djordjevic Susic, the head of the Unit for Entrepreneurship and Innovations at the NALED.

She points out that the aim of this cap is to secure the predictability of business operations and stimulate the continuation of legal operations, which is especially important in the time of the current crisis and high inflation, and adds that potential consequences of removing this cap would be the closing of enterprises or entrepreneurs who pay lump-sum tax escaping to the shadow economy.

Another important innovation is the reduction of the base for beginners in business, by 50%, whereas until now, the reduction was only 20%.

– There is room for additional improvement of these fields through introducing consolidated tax payments and contributions to one, instead of four payment accounts, enabling entrepreneurs who pay lump-sum tax who exceed the limit of six million to opt for the payment of personal income through the app of the Tax Administration, increasing the limit on the income that a lump-sum taxpayer can realize while remaining within the system of lump-sum taxation, as well as other initiatives that are worth talking about – concludes Djordjevic Susic.

Let us remind that the reform of lump-sum taxation started in 2019, when, at the initiative and with the support of NALED, the transparent formula for the calculation of tax obligations was introduced.

By using the Lump-Sum Tax and Contribution Calculator which is available on the website of the Tax Administration purs.gov.rs, entrepreneurs who pay lump-sum tax can calculate their obligations ahead. At the time, the issuing of final tax bills at the beginning of the year was introduced, which means that lump-sum taxpayers no longer have to pay the input tax throughout the year and fear how much they will have to pay additionally upon getting the final bills. Since 2020, tax bills are submitted exclusively in an electronic form at the eTaxes (ePorezi) portal, which can only be accessed by using a qualified electronic certificate.

Vlada Republike Srbije

NALED Beograd

Decree on Lump Sum Taxation

lump sum taxation

lump sum taxpayers