In view of the recent questions in the webinar today about taxes, I thought I would start a thread to ask what your experiences are. Good luck to you all with building your freelance business on Upwork—wishing you all every success.
Thanks in advance.
A very much needed topic, thanks for opening this!
Beside "regular" problems we all face regarding freelancer's tax paying in Serbia, I encountered one additional and would appreciate some advice.
I wish to apply to a job, but the have this request: “Please give details of your current/most recent remuneration package including salary, pension and bonuses. Candidates will be asked for documentary evidence of this if appointed.” Is there some way a freelancer from Serbia can document his earnings?
@Stephen, great topic and something many people are confused about. There was some official info on that recently (not by Upwork but by our goverment.) I 'll find some links on that and post it here within a week. If someone else has it as well, please guys share it!
@Milice, there is, but as a requirement for freelancing, it seems very strange-I think it is probably spam(almost 99% sure of it.)
It is a very,very sensitive personal info and not their business. How is that relevant?
I have seen requests like that just phrased like "what was your previous salary?' but no official evidence or records or copy needed- and that was never related to freelancing jobs. It really seems like a spam posting. I had 55 jobs here and no one ever asked me that question.
@Nataša, thank you for your comment and for being willing to post some government information about taxes on this thread. I am sure it will be helpful to all of us.
@Milica, I would have to agree with Nataša in thinking that the information the client is asking from you is quite possibly a scam / spam. This information is pretty irrelavant for any prospective job and highly personal and sensitive. I have worked on 116 jobs in 2 years and never been asked this sort of information before. I would probably give it a "wide berth" if I was you.
Good luck to you both!
Thank you very much Natasa and Stephen for the advice, I didn't underline that the job is a regular type of job, not freelancing - my mistake, sorry.
For some reasons (a short-time project, very good salary) I wish to try to get the job, but the only thing I can provide them are invoices. Do you know are they a legal document?
And yes, I am aware that these information no firm can ask, let alone require, but I stopped being surprised at anything in Serbia long time ago
I really hope that the government will regulate our sector soon, and in a fair manner, but at the same time I fear what exactly will they do
Milice, nema problema!
Yes, they should accept invoices as a legal document. If you have radna knjizica also, or the statement from your ex- employer with their stamp (where your ex-employer writes the statement, e.g. She worked here from-to and had this salary...)
But invoices should do, although again- it just seems very strange. The only occasion when it might be legitimate is for visa purposes. If I were you, I 'd just be careful and wouldn't give them anything in advance-I mean maybe write how much you earned, but don't give them any documents before you had a chance to see what they are all about. Srecno i nadam se da ce sve biti ok!
For taxes-here is an article written by our marketing/internet expert Dragan Varagic (who works in government-related groups as well.) According to him (and in my view he knows what he is talking about) you shouldn't worry about taxes at all if you earn less than 2 million dinara. There were some government links as well , but so vague that one ends up even more confused after reading them.. He explains it very well.
Sve najbolje svima
Nataša, hvala na svemu!
I am confused when it comes to taxes, but so far the best information I heard is from Zarko Pticek
If I understood him well, currently the best legal option for us it to register as an entrepreneur (I only watched first video).
I am not expert in this field, but I think that Natasa's post might be a bit misleading.
If you read article posted you will notice that even that article isn't saying that you don't have to pay taxes if you earn less than ~ 2 milion dinars, as far as I am aware that is different kind of tax ("extraprofit").
So simplified, you will pay taxes for that amount you have earend above the given cap for that year e.g. state cap for a year is 2 .000.000 dinar, you earned 2.500.000 in this case you need to pay additonal yearly tax for the amount of 500.000 that you have earned over the cap.
As for paying tax, as far as I am aware for reciving any income from abroad from a non-resident legal entity as a "fizicko lice" YOU are responsible for calculating and paying taxes. It is even stated in article Natasha provided:
"U slučaju uplate sredstava iz inostranstva, potrebno je da sami obračunate poreze i doprinose po uplati, što imate dosta detaljno objašnjeno preko ovog linka – za prodaju preko interneta, kao i naplata oglašavanja iz inostranstva, ili preko ovog linka – namenjeno frilenserima.
Ukratko, da ne biste pogrešili u obračunu pripadajućih poreza i doprinosa za fizičko lice pri uplatama iz inostranstva, veoma je poželjno da se obratite nekome ko se razume u knjigovodstvo i obračun plata i doprinosa, da vam tačno objasni kako da tačno izračunate vaše poreske obaveze preko nekog od dostupnih kalkulatora…"
So for each paymeny you recive, you would need to report, calculate and pay taxes (within 15 or 45 days don't remember).
If you don't mind watching videos there are some useful information in Milica Z post.
Being listed as legal entity that will pay "paušal" tax currently seems like solution that might be closest to doing legal bussines, and in some cases there is possibilty of taking advantage of state incentivces like "Subvencija za samozapošljavanje" .
Tho, this is only really worth it in my oppinion if you already have high enough earnings as montly tax vary by residence, there is some information here. Also, there can be quite few complications and things to learn if you want to be listed as legal entity.
Skrill and Payoneer offer master card, this way you will pay some fees to them but you will never actually have to wire your funds to bank in your homecountry.
I hope the above is useful to you.
Thank you or hvala
I am sorry if my post sounds misleading to you-but I did provide the link to the source you are quoting and I 'm glad that Stephen, Milica, Boris, Danijel and Milena provided their resources/asked questions, too. The more info on this topic, the better for all. It was my understanding of this part :
"Tek kada suma vaših godišnjih prihoda pređe 2 miliona dinara ( u 2014. g. za dohodak građana 2.185.488,00 din) plaća se porez čiji iznos možete izračunati preko ovog kalkulatora. Ako ste tokom godine zaradili manje od ove sume – ne plaćate godišnji porez na prihode građana."
Or translated for people who live in Serbia but don't speak Serbian:
"Only after the total sum of your yearly income goes above 2 million dinara(in 2014 2.185.488,00 din), you pay tax, and you can calculate the amount by using this calculator. If you 've earned less than this sum during the year-you do not pay yearly income tax."
Ultimately, again, I am glad that people are able able to check the links (all of them -->check out Boris' post on the second page of this thread as well) and decide for themselves how they 'll interpret it or consult an expert and make up their own mind about their own situation because that was the intention (to je i bila namera) so thank you as well.
Well, this is a very big promblem but maybe the one that the authorities do not sanction so much. Namely, this is something that is still unregulated and it still hoovers in the air as something "abstract" for Serbia. But people may have problems with tax inspectorate when having large amounts of money withdrawin via wire transfers, i.e. directly to their bank accounts in Serbia.
The best solution may be to withdraw your money to electronic wallet for which you have a Visa or Master card and then to withdraw your money with that card on an ITM.