Guide
What determines flat-rate (pausal) tax
We check your activity code, municipality and years in business, explain the Tax Administration decision from your tax mailbox, and make sure you pay the correct flat-rate amount.
The flat-rate amount is not an arbitrary figure but a sum the Tax Administration calculates by a prescribed method and delivers to you by a decision in your tax mailbox on the ePorezi portal. It starts from the average salary in your municipality, which is multiplied by a coefficient tied to your activity group, and is then adjusted for the zone and your years in business. That is why two flat-rate traders in the same line of work can pay different amounts if they are in different municipalities or have been operating for different lengths of time. Understanding these elements helps you estimate the cost in advance and check that the decision is correct.
What you should know
- The starting base is the average monthly salary per employee in your municipality or city, according to data of the Statistical Office of the Republic of Serbia, so the same activity is generally taxed more in a wealthier municipality than in a less developed one.
- Your activity code places you in one of the prescribed activity groups, and each group carries a coefficient set by the flat-rate taxation regulation by which the starting base is multiplied; a higher coefficient means a larger base and more tax.
- On the assessed monthly base, tax on income from self-employment and contributions for pension and disability, health and unemployment insurance are calculated, so the final amount is the sum of the tax and all contributions, not just the tax.
- Years in business affect the amount: newly registered flat-rate entrepreneurs are generally entitled to a reduction of the tax base in their first years, and the year-on-year increase of the base is capped by regulation, which prevents sudden jumps.
- The decision on the assessed liability is delivered by the Tax Administration electronically to your tax mailbox on the ePorezi portal and is deemed served on the day it is posted, regardless of whether you have opened it, so it is important to check the mailbox regularly.
- The liability is paid in monthly advances, as a rule by the 15th of the month for the previous month, while the conditions for the flat-rate scheme remain annual turnover up to 6,000,000 dinars and an activity not excluded from flat-rate taxation.
How we handle it
- 01 Eligibility and code check We check whether your activity qualifies for the flat-rate scheme and determine the exact activity code and group with its coefficient under the regulation.
- 02 Base estimate Based on the municipality of your seat, the zone and your years in business, we estimate the starting base and the approximate monthly tax and contributions before filing.
- 03 Application and registration We file the application for flat-rate taxation together with APR registration and the Tax Administration filing, with the predominant activity correctly selected.
- 04 Monitoring the tax mailbox We monitor your tax mailbox on the ePorezi portal, retrieve the decision on the assessed liability, and verify that the amount is calculated correctly.
- 05 Explanation and payment We explain what the amount consists of and prepare payment slips with the reference number, so you pay the advances correctly and on time.
- 06 Review and appeal If the code or municipality changes or a calculation error occurs, we prepare and file an appeal or amendment so the amount is accurate.
Company formation
We register your company with APR and handle all tax and banking obligations.
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