Baner
Baner
Baner
Lump sum taxation - Strana 2
Content in English
Napisao Ljubiša Lazarević   
sreda, 20 april 2011 10:10

Lump sum taxable entrepreneurs do not keep business books apart from the Register of lump sum taxpayers, which is actually a list of invoices and payments to the account. Lump sum taxpayers can withdraw up to RSD 100,000 per day from their business account without providing evidence to the bank on the reason for withdrawing money. Money of the store can be used for business needs, as well as for personal needs of the founder and his/her family.

 

Here is an example of a lump sum taxable income calculation.

Example of determining lump sum income – Agency (store) is registered for teaching singing, only the founder works in his studio, with standard equipment. The Agency has just been founded, and amounts are given in Serbian dinars (RSD).


Element for determining lump sum income

Possible percent range


1.

Activity – tutoring in arts and sports skills

from 25% to 165%

75%

2.

Location of the store

from - 20% to + 50%

10%

3.

Equipment in the store

from - 20% to + 30%

-10%

4.

Number of employed workers and engaged family members

+10% per employed worker/ engaged family member

0 %

5.

Market conditions for performing the activity

from - 50% to + 100%

10.0%

6.

Surface area of the premises

from - 10% to + 50%

0%

7.

Taxpayer`s age and his/her working ability

up to -20%

0%

8.

Taxpayer`s income performing the same or similar activity under the same or similar conditions;


0%

9.

Other circumstances affecting profit generation

from - 50% to + 300%

-10%

10.

TOTAL

75%


11.

Average gross salary in Belgrade (estimate)

45,800


12.

Lump sum income (10 x 11)


34,350



Social insurance contributions

10%

3,435


Sole trader`s income tax

35,8%

12,297

Monthly expenses

15,732

Enclosed is the Decree on detailed conditions, criteria and elements for lump sum taxation of sole trader`s income taxpayers (in Serbian), so you can estimate yourself how much would the lump sum taxable income be in your case. You are entitled to ask around at the Tax Administration prior to starting the activity how much would the lump sum taxable income be in your specific case, based on the above-mentioned criteria.

It is important to note that the tax inspector can estimate arguably that you do not fulfil conditions for lump sum taxation any more, or he/she can determine a higher lump sum taxable income based on your turnover and other elements.

An estimate should be made then if it pays out to stay a lump sum taxable entrepreneur or is it better to hire an accountant and keep business books.



 
Joomla templates by a4joomla