Paušal in Serbia
The independence test for paušal entrepreneurs: 9 criteria and a check
All 9 criteria of Serbia's independence test, what meeting 5 of them means, who it applies to, and a one-minute check for each client.
In short
If you meet 5 of the 9 criteria with one client, income from that client is taxed as “other income”, at a much higher rate, as if you were employed. The criteria include: the client sets your hours, you work at their premises, you use their equipment, they bring 70% or more of your income over 12 months, you worked 130 or more days for them, your contract forbids other clients.
When: For every client, every year
What to do
Work for several clients, with your own equipment and schedule, under contracts that don't forbid other work. You can see each client's share of your income under Reports. No form is filed for the test; an inspector assesses it in a review.
All 9 criteria
The test is applied to each client separately, over 12 months. If you meet 5 or more criteria with one client, you're considered not independent of them:
- the client sets your working hours or approves your time off
- you work at premises or a place the client decides
- the client organises your training
- you were hired through a job ad or a recruitment agency
- the client provides or pays for your basic tools
- 70% or more of your income in 12 months comes from the client
- you do the client's core business, with no business risk
- the contract bars you from working for others
- you worked for the client 130 or more working days in 12 months
The test also applies to foreign clients. There's no form to file: an inspector assesses it in an audit, from your contracts and whether you have other clients.
Check a client
Tick what applies to one client over the last 12 months.
Official sources
Other obligations
Tax Administration contact centre: 0700 700 007 or 011 6969 069
This is a plain-language overview, not legal or tax advice. Rules change; when unsure, check the official pages or call the Tax Administration.
Common questions
What happens if I fail the independence test?
Income from that client is taxed as "other income", at a much higher rate, as if you were employed. Your other clients stay under paušal.
Is having only one client a problem?
One client meets the 70% income criterion, and often the 130-day one. That's two of nine; the test fails only at five. Who decides your hours, place of work and tools matters too.
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