Tax treatment of flexible forms of work in Serbia in light of the COVID-19 global pandemic

Abstract

The COVID-19 pandemic has accelerated the development of flexible forms of work, those forms of work that have essentially been enabled by the development of modern technologies. In the case of flexible forms of work, evasion of taxes and, perhaps more importantly, contributions to compulsory social security are quite pervasive. During the COVID-19 pandemic, the Serbian Tax Administration tried to collect taxes from persons who pursued flexible forms of work for employers or clients from abroad, which led to protests. Ultimately, the negotiations with the Serbian Government resulted in an agreement on transitional solutions, as well as future changes in the tax regulations. This paper aims to explain the essence of the problem that arises in Serbian tax law in connection with flexible forms of work, to analyze the proposed transitional solutions, as well as to offer some suggestions that could lead to longer-term solutions to this problem.

Keywords

• false self-employment
• independence test
• schedular taxation
• global services market