Independence Test: How Independent Should an Independent Contractor be?
At the end of 2019, the National Assembly of the Republic of Serbia adopted the Law amending the Law on Personal Income Tax (“LPIT”), which entered into force on 14 December 2019, however the application of certain provisions was delayed until 1 March 2020, notably those referring to the so-called independence test. Contractors, despite paying income taxes from independent activity, will have to prove how independent they are in performing their activity. What does independence test actually mean? The purpose of test application is to determine the independence of a contractor in relation to his principal. If it is established...