Amounts of the highest and lowest bases for calculating contributions for mandatory social insurance that will be applied in 2024

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The amounts of the highest and lowest bases for the calculation of contributions for mandatory social insurance, which will be applied in 2024, have been published. In the Official Gazette of the Republic of Serbia no. 115/2023 of December 22, 2023, the following were published:

  • The amount of the highest monthly contribution base for the year 2024;
  • The amount of the lowest monthly contribution base for 2024;
  • The amount of the highest annual contribution base for 2024;
  • The amount of the lowest monthly contribution base for insured persons from Art. 25, 26 and 27 ZDOSO for 2024.

The new bases for calculating contributions will be valid from January 1, 2024 to December 31, 2024.
The new base amounts for the calculation of contributions will be applied to all salary payments, salary differences or contracted compensation for temporary and occasional jobs that are performed from January 1, 2024, regardless of the month in which the payment is made.

  1. The amount of the maximum monthly contribution base for mandatory social insurance for the year 2024
    The highest monthly base on which contributions for mandatory social insurance are calculated and paid amounts to 573,470.00 dinars.
  2. The amount of the lowest monthly contribution base for mandatory social insurance for the year 2024
    The lowest monthly basis on which contributions for mandatory social insurance are calculated and paid is 40,143.00 dinars.
  3. The amount of the maximum annual contribution base for mandatory social insurance for the year 2024
    The highest annual contribution base for mandatory social insurance for 2024 is RSD 6,881,640.00.
  4. The amount of the lowest monthly contribution base for compulsory social insurance for insured persons from Articles 25, 26 and 27 of the Law on Contributions for Compulsory Social Insurance for the year 2024
    The lowest monthly base on which contributions are calculated and paid for mandatory social insurance for self-employed artists, priests, religious officials and farmers for the year 2024 is 40,143.00 dinars.

HAPPY HOLIDAYS

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Dear all,

As the holiday season approaches, below you can see the public holidays in January and February 2024.

In January and February 2024, the following state holidays will be observed:

New Year: January 1st and 2nd (Monday and Tuesday) – New Year’s holiday, which falls on Monday and Tuesday in 2024, will be observed as non-working days. Statehood Day (Sretenje): February 15th and 16th (Thursday and Friday) – Statehood Day, being on Thursday and Friday in 2024, will be observed as a non-working day. In January and February 2024, the following religious holidays will be observed:

Christmas: January 7th (Sunday) – Christmas on Sunday in 2024, will be observed as a non-working day. However, since it is a religious holiday celebrated on the actual day, unfortunately, there is no adjustment to a non-working day on Monday, January 8th. Catholics and other Christians celebrating Christmas according to the Gregorian calendar will observe Christmas on December 25th, 2023 (Monday), and they are entitled to a day off.

Saint Sava (Spirituality Day): January 27th (Saturday) – Saint Sava’s Day, being on Saturday in 2024, will be observed as a working day if Saturday is a regular working day according to the work schedule. In January and February, Orthodox believers celebrating their patron saint on any day in January or February are entitled to a day off.

In accordance with Article 114, paragraph 1 of the Labor Law, employees are entitled to receive compensation in the amount of the average wage over the past 12 months for the time of absence from work on a public holiday that is a non-working day.

In accordance with Article 108, paragraph 1, point 1) of the Labor Law, employees are entitled to an increased wage determined by the general act and employment contract for working on a public holiday that is a non-working day – at least 110% of the base.

Happy upcoming holidays from Kreston MDM!

Kreston Futures Emerging Talent Conference

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Last Thursday, our Kreston Global network held their first Kreston Futures Emerging talent conference, for all our Kreston people at Manager, Associate, and equivalent levels across the network.

Hosted by our own Jovana Vlajic and Vinoth Pushparaj from Kreston Sri Lanka, we heard from our keynote speaker Rob McGillen from CBIZ about how generative AI is an enabler for the accounting profession and how we can take advantage of it.

After breakout discussions, panel discussion, chaired by Emily Baldwin from Kreston Reeves and featuring tech recruitment expert Nevena Sofranic, founder of referral based hiring platform Recrooit and ACCA’s Clive Webb on where the profession is heading over the next few decades and what younger current and future recruits consider essential to them in their accounting careers.

Our delegates had lively debates in their group sessions and have given us valuable insight into how we can continue to support our younger talent across the network as part of our  Kreston Futures programme.

KRESTON MDM Signs Exclusive Partnership Agreement with Lentink De Jonge Accountants & Adviseurs

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We are thrilled to announce the signing of an exclusive partnership agreement with Lentink De Jonge Accountants & Adviseurs. This collaboration will bring together our expertise within the Kreston Global network, focusing on audit and assurance-related services. The partnership entails KRESTON MDM’s support for national and international audit assignments of Dutch member firm.

A key aspect of this partnership involves the mutual exchange of knowledge and innovation. Lentink De Jonge Accountants & Adviseurs will be providing support to KRESTON MDM in the advancement of data analytical technologies.

By joining forces, we are not only expanding the capacity of the Dutch audit practice and the capacity of Serbian tech expertise but also breaking boundaries within the Kreston Global community. This partnership showcases the limitless potential of collaboration between members across borders.

THE FREELANCERS PORTAL HAS BEEN LAUNCHED

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The Frilenseri portal, www.frilenseri.purs.gov.rs, has finally been launched, allowing freelancers to report their income, pay taxes and contributions, as well as learn about their rights and obligations.

At the beginning, it is possible to take a test to determine if you are a freelancer, and then you can use the tax calculator to calculate which tax model is better for you specifically.

Tax registration is done at the end, and there are two options for registration:

  1. You can register through the eid.gov.rs portal if you have a qualified electronic signature and a card reader, or through the mobile application (cloud signature).
  2. The second option is to download the Frilenseri application from this website and register your taxes through it.

Taxation of Freelancers And a New Tax Declaration PP OPO-K

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The Minister of Finance issued the Rulebook on Amendments and Supplements to the Rulebook on Tax Returns on Calculated Tax through Self-Taxation and Associated Contributions to Earnings, i.e. other types of income from a natural person as a taxpayer (“Official Gazette of the RS”, No. 21/2023), which entered into force on March 25, 2023 (hereinafter: Rulebook).

The rulebook introduced a new tax return on the PP OPO-K form – Tax return on calculated tax through self-taxation and related contributions on income generated quarterly, by a natural person as a taxpayer, which will be submitted by natural persons, so-called freelancers, i.e. natural persons who earn income from the contracted fee from copyright and related rights and income from the contracted fee for the work performed, in a situation where the tax is determined according to the self-taxation system (when they earn income from persons who, when paying, do not have the obligation to calculate taxes and contributions in Serbia).
Namely, the new tax return of PP OPO-K was introduced considering that in the system of taxation of citizens’ income from January 1, 2023, in the application of two new models of quarterly taxation, two incomes are mentioned.
Natural persons as taxpayers, who declare and pay their tax liability quarterly (for income generated in a period of 3 months), according to the self-taxation system, submit an application on the PP OPO-K form for the income they have generated starting from the second quarter (from 1. April 2023 until June 30, 2023). The deadline for submitting the application is 30 days from the end of the quarter (for the second quarter, the PP OPO-K application must be submitted no later than July 31, because July 30 falls on a Sunday – a non-working day).
When it comes to the income they earn in the first quarter (from January 1, 2023 to March 31, 2023), taxpayers have 2 options at their disposal:

  • The application can be submitted on the PP OPO-K form, with the proviso that in that case the deadline for submitting the application is not 30 days from the day the first quarter has expired, but the deadline is 30 days from the next day in relation to the day when the technical conditions for submitting the application are met on the PP OPO-K form;
  • The application can be submitted on the PP OPO form, and in that case the deadline for submitting the application is 30 days from the end of the first quarter.

The reason for this situation is the fact that the technical support for submitting an application on the PP OPO-K form is still being prepared. It is expected that the technical support will be operational soon, and a notice will be posted on the website of the Ministry of Finance and the Tax Administration when the technical support becomes operational.
Technical support should make it easier for natural persons to submit an application on the PP OPO-K form, while the technical support service will not be available for submitting an application on the PP OPO form.

It is expected that the user manual will be published soon, as well as explanations regarding the submission and filling out of applications on the PP OPO and PP OPO-K forms.

Annual personal income tax on income earned in 2022

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The annual personal income tax on income generated in 2022 is calculated and paid according to the self-taxation system, instead of according to the decision of the tax authority, as was the case until now.

In practice, this means that the Tax Administration, based on the available data from the official records of citizens’ incomes for the year 2022, will pre-fill the tax return for the determination of the annual income tax of the citizens for the year 2022 and post it as a working version of the return (status “in preparation” ”) to the ePorezi portal.

All natural persons who in 2022 earned an income higher than three times the average annual salary per employee paid in the Republic of Serbia, which for 2022 amounts to RSD 3,719,376.00, are obliged to no later than March 15, 2023. year on the ePorezi portal to check the data presented in the pre-filled tax return and to make any corrections independently if they do not agree with the data presented in their pre-filled tax return, and to submit the corrected return in the same place by accepting the “Sign and submit” option.

The most common example of supplementary data entry refers to the number of dependent members of the taxpayer’s household.

If the taxpayer does not submit a tax return by May 15, 2023, the Tax Administration will do it for him.