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Working from abroadRemote work and taxesWorking for a foreign companyDouble taxation
Calculator
Gross to NetNet to Gross
What is Gross 1?What is Gross 2?Difference Gross 1 - 2
How is salary calculated?What is included in gross?What items are deducted?Salary calculation exampleMinimum salaryAverage salary
What taxes do I pay?Pension & Health ExplainedTax ratesSurtax – who pays it?Tax reliefs – who is entitled?Personal deduction – what is it?
Common calculation mistakesNegotiating gross salaryGross or net – which is better?How to increase net salary?Regional salary differences
Child tax reliefsReliefs for dependentsDisability reliefsHow to report tax reliefs?
Working from abroadRemote work and taxesWorking for a foreign companyDouble taxation

Working from abroad – How is tax calculated?

In the modern age of technology, it is an increasingly common situation where a worker has an employment contract with a domestic employer in Serbia, but performs work from another country. This carries serious tax consequences.

Where do you pay tax and contributions?

The general rule of international taxation is: Income from non-self-employment is taxed in the country where the work is PHYSICALLY performed.

This means that your tax liability does not follow the seat of your employer, but follows your physical stay. If you are physically in another country while working, that country has the right to tax your work!

Risk of "Permanent Establishment"

The greatest risk of working from abroad falls on your employer. That foreign country could declare your work a "Permanent Establishment" of your domestic company, forcing the company to pay corporate tax in that country.

What about the A1 certificate?

For temporary "posted work," the A1 certificate system was developed to ensure that you continue to pay contributions in your home country while you are temporarily (up to 24 months) abroad.

183-day rule (Tax residency)

A key international rule is 183 days: you will be considered a tax resident of the country where you have physically spent more than 183 days in one calendar year.

Case A: Working from abroad for a few weeks: You retain tax residency in your homeland. All taxes go to the domestic budget.
Case B: Permanent move abroad (6+ months): You become a foreign tax resident and are obliged to report taxes according to foreign regulations.
An exception is sometimes made for directors and board members, where the center of business interest is where the corporate headquarters is located.

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