Lump-sum taxation to be automated from January 1, 2020

It is realistic to expect that the automation of the lump-sum taxation will start on January 1, 2020, it was agreed at the latest round table held in September as part of the “Lump-sum Taxpayers' Month”.

By the end of the week, a work group should be formed which will deal with a reform of the lump-sum tax payment system, whereas, in the month following that, it will work on a model of reform and the software for the Tax Administration.

Jelena Bojovic of the National Alliance for the Local Economic Development (NALED) says that it is the IT community that finds this topic the most interesting. She said that lump-sum taxpayers cited as the biggest problems in the current system the fact that they are not certain when they start a business whether they fall under the lump-sum tax payment system or not, that their tax and contribution bills are sometimes months late and that due to this they lose their right to pension and health insurance, but also on obtaining confirmations of paid taxes.

– Through these dialogues, we learned that the bills are not just a problem for entrepreneurs, but for tax inspector as well. I don't know how many tax inspectors work on these solutions, but we do know that 300,000 bills need to be processed each year – Bojovic said.

She added that the Tax Administration assembles the bills based on the data of the Statistical Office of the Republic of Serbia on the average salary in the past year, and these data are sent only in late February.

– Tax inspectors therefore cannot issue bills before March, which means that there's a three-month delay from the start. That is why we need to find a solution that suits everyone – Bojovic said.

She estimates that it is realistic to change the legal framework and the automation of the system of lump-sum tax payment from January 1, 2020.

– I expect that bills will be issued through a smartphone app and that we will be able to pay our taxes with our phones then – Bojovic is optimistic.

Danijela Jakovljevic, a representative of the Tax Administration, expressed hope that the preparation of the software would remove the problems that lump-sum taxpayers and tax inspectors face.

– Everyone planning to register their business will be able to see what some of their future expenses will be by entering certain data in the software. This way, before they start with their activities, they will know what the expenses will be and therefore decide whether to register their business or not – Jakovljevic explained.

Poreska uprava Srbije

NALED Beograd

Republički zavod za statistiku

Jelena Bojovic

NALED

Danijela Jakovljevic

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