The proposed measures correlate with the analysis published by the Fiscal Council on 1 July 2021 under the name „Two decades of individual income tax: Possibilities and need for system reform“. In this analysis, the Fiscal Council pointed out a legit remark regarding the unequal tax treatment of different types of engagement (employment relationship, engagement through a service agreement or agreement on temporary and occasional activities, and others).
On the other hand, the analysis from the year 2021 does not address the matter of flat-rate taxation almost at all.
Our Partner Nikola Djordjević and Senior Associate Marija Vukčević provide a detailed overview of the given analysis, measures, and questions on whether the fundamental problem has not been identified, i.e., the reason due to which entrepreneurs gravitate towards flat-rate taxation whenever possible.
In the full article HERE (in English), and HERE (in Serbian) the authors explain which measures of fiscal and tax policy would be the first step in the direction of proper reform and improved position of entrepreneurs, providing an overview of the present policy of inciting entrepreneurship, especially in connection with IT services provided by resident natural persons to foreign customers, which, at the same time, lowers the unemployment rate.