May 13, 2021

Freelancers’ protests reshape Serbia’s tax law

topic:	Economic Inclusion
located:	Serbia
editor:	Katarina Panić

Of the seven million people in Serbia, some 100,000 are freelancers. This is just an estimate, however, as freelancers were invisible for the legislative authority until recently. Then at the end of last year, they suddenly became attractive to tax authorities. 

"I do not refuse to pay the tax. I am not a thief. I've been trying to self-report my incomes and to pay taxes accordingly for years. Yet, I was told that I am not listed as a tax subject and that I should wait until the law is adopted", Igor, an IT professional from Belgrade, told FairPlanet.  

The community includes programmers, journalists, photographers, videographers, audio or video editors, copywriters, translators, web or graphic designers, language teachers working via freelancing platforms and invoicing foreign clients - all of whom are not being recognised by national labour law. 

"If there is no law, it can't be up to us. It is up to the system. It is not fair that we suffer the omission made by the state. Let's make the laws firstly, together if possible, and then put them into force. From the future, not from the past," Igor added.

Most of these people would welcome the appropriate law, but couldn't accept being taxed retroactively, all the way from 2015 until today. And it is precisely that period that was covered by the tax bills that they started receiving last December. Their protests have been taking place in the capital Belgrade ever since. After the government adopted the draft law on 1 April, hundreds of internet workers have been camping for three days in front of the National Assembly.

"I intended to sleep in a tent, but it was three degrees below zero, so I couldn't," a girl from Novi Sad told local media. She is an English teacher and has students all over the world. The youngest is a 2-year-old girl; the oldest is 76. 

Eventually, the government agreed to make some concessions. 

Late last month, the MPs brought forth a law that included the amendments of freelancers related to retroactive taxation, future tax rates, interest rates on tax debts, pension and health insurance and adopting further laws. 

Several rounds of negotiations were attended by the prime minister, finance minister, tax administration general manager, and a radical and moderate faction of the freelancing community.

"The IMF does not have such a composition for one meeting when they come to Serbia," the prime minister's advisor told the local media.

Image: Sam Walker.

Call to Action

Bosnia: Support young journalists!

Support now