What does the data show? How much do the self-employed earn on average and how much do they owe the state?

Learn from the example of Bosnia and Herzegovina? “The Tax Administration can certainly decide to collect fines, as stated in the warning to the self-employed for individuals. We have already seen such a scenario in Bosnia and Herzegovina, where such action has led to the devastation of the autonomous community, and Without, under normal circumstances, desirable consequences, to broaden the tax base, “the Center for Public Policy Research said in a statement.

“In this case, we are talking about freelancers who have employers abroad, and who are in the condition of natural persons and have not paid income tax so far. Our proposed solution refers to those digital workers who are usually at the beginning or in the first years of their careers, and do not yet have stable clients, “the statement read.

According to their research, they add, there are about two-thirds of these freelancers.

“Our previous research indicates that the average income of these freelancers is around 80,000 gross per month, which does not mean that these salaries are regular and guaranteed in advance. In this sense, no generalization is good, because, for example, women in the self-employed earn on average around 60,000 RSD. And so it was before the onset of COVID, which actually brought breakthroughs: a stagnation in demand from Serbian software makers (a male-dominated profession) and a declining demand for female-dominated professions like writing and translation and professional services. ” . , they say.

According to the Center’s assessment, even if it is the smallest tax debt in question, based on the most favorable non-taxable base of 50 percent, our freelancer owes a significant amount.

“If, for example, they earned an average of 80,000 gross RSD per month in a year, they would be obliged to pay at best around 270,000 RSD per year (approximately 2,300 euros) for taxes and contributions,” said the Center in a statement.

They consider that a non-taxable base higher than the current one should be defined, which would exempt the self-employed who receive relatively low incomes (slightly above the minimum wage) from paying taxes.

“Those with higher incomes would be taxed proportionally so that, at a time of relatively stable income, they can easily replace the status of an individual with the status of a lump sum or establish a limited liability company. Another option is to recognize more standard costs. high, for example, which would reduce the tax burden of the self-employed to a level of tax burden closer to that paid by other taxpayers ”, they suggest.

They point out that Serbia is at the top of Europe and the world in terms of the number of self-employed per capita, and when looking for an adequate solution, it must be taken into account that the employer of these taxpayers is abroad and does not pay its share of taxes and contributions. taxpayers under an employment contract or copyright agreement whose employer is in the country. In other countries, they add, in such cases, some states have borne the cost of the employer.

Fines of 5,000 to 150,000 dinars

Depending on the amount of the tax liability determined, charges for minor or criminal offenses will be filed against the self-employed included in this action, recalls the Center.

Thus, a natural person who obtains income from abroad, but does not present a tax return to the Tax Administration, in accordance with the Tax Procedure and Tax Administration Law, will be fined from 5,000 to 150,000 dinars. If a natural person does not pay taxes. determined in the tax return, that is, by decision of the Tax Administration, will be sanctioned with a fine in the amount of 50 percent of the tax determined, and no less than 5,000 dinars “, reads his statement.