Flat-rate taxpayer (Sole Proprietorship) - registration and taxes

## What is a Paushalac?

Paushalac (paušalno oporezivanje) is a simplified taxation system for individual entrepreneurs (preduzetnik) in Serbia. It is the most popular option among IT specialists and freelancers: taxes and mandatory contributions are calculated from a fixed base approved by the tax authority, rather than from actual income.

## Benefits

- Fixed payments, not dependent on how much you actually earned (within the limit).
- Accounting - no professional accountant is required, KPO book can be kept independently.
- Registration takes 2-3 working days.
- Obtaining paushal status serves as a basis for temporary residence permit (boravak) for work/business.

## Limits: 6 million and 8 million RSD

- **6,000,000 RSD per calendar year** - the limit of the paushal regime itself. If exceeded, you will have to switch to regular accounting (knjigaš) in the next year.
- **8,000,000 RSD for any 12 consecutive months** - the threshold for mandatory registration in the VAT (PDV) system. No VAT is required to be paid up to this level.

## How much to pay (2026)

The payment consists of four fixed components: income tax 10% + pension (PIO) 25.5% + healthcare 10.3% + unemployment contribution 0.75% ≈ 46.55% of the calculated base.

For IT codes 6201 and 6202, the calculated base is set at the national level, without differences by cities. Estimated amounts (Belgrade, 2026, per month):

| Code | Name | Calculated base (RSD) |
|-----|-------|----------------------|
| 6201 | Computer programming | 48,000 |
| 6202 | IT consulting | 48,000 |
| 6209 | Other IT services | 32,000 |
| 6312 | Web portals | 32,000 |
| 7022 | Business consulting | 33,000 |
| 7410 | Design | 32,000 |
| 7430 | Translators | 57,000 |
| 9003 | Artists/writers | 40,000 |

For new paushalacs, a reducing coefficient of 0.5 applies, which can increase by a maximum of 10% annually. It is already included in the specified amounts; separate "50% discounts" are a myth. Always check the exact figure in the official tax calculator: **[eporezi.purs.gov.rs](https://eporezi.purs.gov.rs)** (in January, the service is not available due to rate updates).

## Test of independence (important for IT and freelancers)

Since March 2020, the Poreska uprava has been operating a "test of independence" (test samostalnosti). It consists of 9 criteria that check whether a paushalac is not a hidden employee of one client. If **5 or more** criteria are met, income from this client is considered "other income" and taxed at a rate of 20% + 25.5% PIO contributions - significantly more expensive than the paushal regime. The test is conducted only within a tax audit; it is not required to pass it when opening an individual entrepreneurship.

## Registration - step by step

1. **Choose an activity code**. For IT, usually 6201 (programming) or 6202 (IT consulting). There can be only one code, so carefully study the official description.
2. **Register with APR** (Agencija za privredne registre). The fee is around 2,500 RSD; it can be formalized online (e-signature/ConsentID required) or in person.
3. **Obtain rešenje** - within 2-3 working days.
4. **Open a business account** in a Serbian bank (a bank account is mandatory by law).
5. **Apply for paushal** in Poreska uprava; after approval, you receive rešenje o rasčatnoj bazi.
6. **Register with PIO** - pension fund (only after obtaining temporary residence permit, foreigner's ID number required).

## Who is not suitable for paushal

According to Article 40 of the Law on Income Tax, the paushal regime is prohibited for: trade (wholesale/retail), catering and hotels, financial intermediation and insurance, advertising and market research, real estate transactions, audit/accounting, as well as any activity requiring a license. Income from advertising (website, YouTube, Twitch) refers to code 7311 and does not fall under paushal.

## Alternatives to paushal

- **Knjigaš with salary** - taxes around 20%; suitable for non-paushal code, limit exceeded, or high margin.
- **Knjigaš without salary** - taxes around 46% of all profit; beneficial for low margin and large deductible expenses.
- **DOO** - for two or more co-founders working with common clients (see separate article).
- **Freelancer (samozaposleni)** - a special tax regime for those who already have a temporary residence permit on a different basis; it is not possible to obtain a temporary residence permit under this regime.

## Monthly obligations

- Payment of taxes and contributions - by the 15th of the previous month.
- Issuance of invoices (bills) to clients and maintenance of KPO book (KPO).
- Eco-tax (ekološka taksa) - for small businesses, the minimum rate is approximately 5,000 RSD per year.

> **Important:** if your income changes or you switch to a different tax regime, update your calculated base in Poreska uprava in a timely manner.