The state offered the self-employed a cancellation of interest and a refund for 10 years

At the recently concluded final meeting of the Internet Workers Association with representatives of the Government of Serbia, no agreement was reached on the payment of taxes. The state offered the self-employed a debt rescheduling, with canceled interest and payment of the debt in installments for ten years, Katarina Pavlović, a lawyer for the Online Workers Association, told the N1 portal.

“They gave us a proposal to cancel all interest rates and suspend all tax collection procedures until April, when the Law on Personal Income Tax would be reformed,” says Katarina.

These changes would contemplate that the self-employed pay taxes in installments of up to 10 years, but also contributions that are the most controversial for the self-employed. All of this for the past five years and the current year.

“We were told that the standard costs of 43 percent would be recognized. This means that 43 euros are deducted from the income of one hundred euros, while the remaining 57 euros represent the tax base.” It is considered as the gross income of a self-employed on which is calculated a tax at the rate of 20 percent, contributions for PIO of 25.5 percent and contributions of 10.5 percent for health, ”explained Katarina.

It indicates that the association must perform a calculation of the offered solution.

We believe they did it in such a way that payment will not be absolutely impossible, as the existing billing model is absolutely impossible. I assume that such a payment would be possible, but probably with mere survival ”, says the interlocutor of the H1 portal.

Unacceptable solution

Representatives of the Internet Workers Association believe that such a solution is unacceptable.

“We believe that such a solution is unacceptable, because we simply do not have a calculation in front of us. Especially since the contributions that are more problematic for us still remain. We will ask the members of the association and other freelancers to say what they think of that idea” Katarina said.

He announced that the state would begin its campaign to accept such a solution.

“On Monday, the state will invite the self-employed to accept that solution with an invitation from the general public, so whoever applies, requests.” “Now they will work on their campaign to accept such an agreement, and we will do ours,” he said.

Freelance proposal

The Internet workers association presented its proposal to the state representatives.

„Our proposal is that the calculation and collection of taxes start on October 14, 2020, when the Serbian Tax Administration announced an invitation to the general public to self-employed. That would reduce the administration for the Tax Administration, because everyone would come and report their income, they would start paying, no amendments to the law would be needed, but we would start working on the Flexible Forms of Work Law, ”said Katarina Pavlović.

According to this proposal of the association, every self-employed person, regardless of the work they perform, would be recognized standard costs (amount by which it is deducted from the income to obtain the tax base) in the lowest percentage, of 20 percent. The tax rate would be, on gross income, 20 percent.

“That means the effective cost for each self-employed worker would be 16 percent.” So, for a hundred euros earned, the state would pay a tax of 16 euros, ”said Katarina Pavlović.

Transition solution

“We do not see that they expressed even the slightest understanding of the problems that they themselves caused by years of inaction, and then by the useless actions of the Tax Administration and the persecution of people who worked honestly and supported each other, while doing nothing. “We will not and cannot stop our struggle. We invite all people to express what they think about the Government’s proposal, on Facebook, in the media, in protests, everywhere,” said the Association, announcing that soon will announce the next steps.