Flat-rate basics
Who can be a flat-rate entrepreneur?
An entrepreneur whose activity code is allowed for flat-rate taxation and whose annual income does not exceed 6.000.000 RSD. You can estimate your obligation in the u003ca href=u0022/alati/kalkulator-pausala/u0022u003eflat-rate tax calculatoru003c/au003e.
Which activities are NOT eligible for flat-rate taxation?
Wholesale and retail trade, advertising and market research, financial intermediation, real estate trading and conventional hospitality (except mobile facilities). A common trap is marketing and SMM services (group 73) — these are excluded.
Can lawyers, doctors and accountants be flat-rate entrepreneurs?
Yes. Legal practice (code 69.10), accounting and auditing services (69.20), medical and dental practice (86.21–86.23) — all are predominantly taxed at the flat rate, subject to the turnover limit and other conditions.
Does a flat-rate entrepreneur keep accounting books?
No. The only mandatory record is the KPO book (Book of Realized Turnover). There are no balance sheets, double-entry bookkeeping or final accounts — the KPO is closed on December 31 and kept on file; it is not submitted to the Tax Administration (it is made available for inspection on request).
Can I be a flat-rate entrepreneur if I am already employed or retired?
Yes. If you are insured on another basis (employment or pension), on the flat rate you do not pay contributions for health and unemployment — only tax and the pension (PIO) contribution. This significantly reduces the monthly obligation.
Tax, contributions and payment
How much is the flat-rate tax?
It depends on the activity (coefficient from Annex 1 of the Regulation), the municipality and zone of the registered office, and the age of the business and owner. Tax of 10% and contributions (PIO 24%, health 10.3%, unemployment 0.75%) are paid on the base. For IT in Belgrade this is roughly around 45.000 RSD per month. Calculate your estimate in the u003ca href=u0022/alati/kalkulator-pausala/u0022u003ecalculatoru003c/au003e.
When are the flat-rate tax and contributions paid?
By the 15th of the month for the previous month, into four separate payment accounts from the assessment — the obligation exists even in months with no income.
What if I am late with payment?
Default interest is calculated at the rate of the NBS reference interest rate increased by 8 percentage points (currently 13.75% per year). Default runs from the first day after the deadline expires (from the 16th of the month). You can check the amount in the u003ca href=u0022/alati/zatezna-kamata/u0022u003edefault interest calculatoru003c/au003e.
How does the Tax Administration determine my flat-rate tax?
By an assessment, based on the PPDG-1S return and data on activity, municipality and zone. The assessment usually arrives in your electronic inbox on the ePorezi portal at the start of the year; until it becomes final you pay according to the previous assessment. You have the right to appeal the assessment within 15 days.
Limits, VAT and switching to books
What is the income limit for flat-rate taxation?
6.000.000 RSD per calendar year, and this limit includes both domestic and foreign turnover.
When must I enter the VAT system?
When over the last 365 days you exceed 8.000.000 RSD in turnover. A flat-rate entrepreneur cannot be a VAT payer at the same time, so by crossing that threshold they lose the right to flat-rate taxation and switch to keeping accounting books.
What happens when I exceed 6.000.000 RSD?
You lose the right to flat-rate taxation and switch to keeping books. Timing rule: if you exceed the limit by June 30, books are kept from July 1 of the same year; if after June 30, from January 1 of the following year.
What is the independence test and why does it matter?
It is a test from Article 85 of the Law on Personal Income Tax with 9 criteria. If, in relation to a single principal, you meet at least 5 of 9, it is deemed to be a disguised employment relationship — the compensation is then taxed as u0022other incomeu0022 (20% tax on the full gross, without standardized expenses, plus contributions), which is considerably less favorable. Take the u003ca href=u0022/alati/test-samostalnosti/u0022u003eindependence testu003c/au003e.
Foreign income and foreign clients
How is income from abroad reported?
Foreign (foreign-currency) income is recorded in the KPO book in dinars, at the NBS middle exchange rate on the date of the transaction (as a rule the date the invoice is issued), and the full amount counts toward the 6.000.000 RSD limit.
Do you work with foreigners, and in which language?
Yes. We work in Serbian, English, Russian, Hungarian and Turkish. We help foreign entrepreneurs and relocators (especially IT freelancers) with registration, foreign-currency inflows, taxes and communication with the Tax Administration.
Does a flat-rate entrepreneur pay the annual personal income tax?
As a rule no, if their only income is from the registered flat-rate activity — the flat-rate-assessed base rarely reaches the tax-free threshold (5.439.096 RSD for 2025 income). The obligation arises only if, combined with other income (salary, fees, dividends), you exceed the threshold; the filing deadline is May 15.
Working with ECONOS
How much does flat-rate bookkeeping cost with you?
We have clear monthly packages with no hidden costs — see u003ca href=u0022/cene/u0022u003eprices and packagesu003c/au003e. The price depends on the volume (number of invoices, foreign-currency inflow, need for consulting).
How do I switch to you from another agency?
No interruption and no complications — we take over the documentation and access, reconcile the records and carry on. You just sign an authorization. Get in touch via the u003ca href=u0022/kontakt/u0022u003econtact pageu003c/au003e.
Are your calculators official?
No — our tools give a rough, informational estimate and do not constitute official tax or legal advice. The exact amount is determined by the Tax Administration by assessment. For a binding estimate, book a consultation.