Accounting for the IT sector

Why the IT sector needs a specialised accountant

IT businesses have specifics that general accounting firms often do not cover well: invoicing in foreign currency, recording foreign-currency inflows, the VAT treatment of services supplied to clients in the EU and worldwide, contracts with foreign companies, ESOPs and foreign ownership. A mistake in any of these is expensive — we deal with them every day.

What we cover

• Foreign-currency income — recording inflows from abroad, exchange rate differences and reporting to the National Bank.
• VAT on services supplied abroad — correct treatment of exported software services, exemptions and the place of supply.
• The independence test — risk assessment for sole proprietors working mainly for one client, and a plan for what happens if the test is failed.
• Transfer pricing — studies for companies with a foreign parent or related parties, in line with OECD guidelines.
• Leaving the flat-rate regime — when you outgrow the RSD 6 million limit we manage the whole transition to a personal salary or an LLC, without interrupting your business.
• Payroll and benefits — employees, service contracts and engaging freelancers.

After the flat-rate regime — personal salary or an LLC?

The cheapest option after flat-rate is usually a sole proprietor on a personal salary: bookkeeping becomes mandatory, you pay yourself a salary, and you pay 10% tax on actual profit — the difference between income and expenses. You can withdraw money without any further tax, so in the end it costs you only that 10% on profit not covered by expenses.

A well-structured LLC is not expensive either, but profit is taxed at 15%, and if you want to pay it to yourself as a dividend there is a further 15% dividend tax — and a dividend is only possible if there is realised profit. In return you get a separate legal entity, protection of your personal assets and much more room to grow, hire and bring in foreign founders.

Which one actually pays off for you depends on revenue, costs and plans — we work it out together, with the numbers in front of us.

What does it cost?

You can see the approximate flat-rate amount for IT activity (code 6201) straight away in our flat-rate tax calculator, alongside the gross-to-net salary calculator and the freelancer tax calculator. For a bookkeeping quote, see how we build a price or simply get in touch — the conversation and the assessment cost nothing.

Frequently asked questions

I work for a single foreign client — can I be a flat-rate taxpayer?

Possibly — this is exactly the situation the independence test examines through nine criteria: who sets the working hours, whose equipment you use, who bears the risk, and so on. Note that the test applies to all sole proprietors, both flat-rate and personal-salary. Only an LLC is outside its scope. We assess your specific case before registration; where the risk is high, an LLC is the safest solution.

How is foreign-currency income taxed?

Income from abroad is recorded in dinars at the exchange rate on the day of inflow. For flat-rate taxpayers it goes into the KPO book and does not change the fixed tax, as long as you stay under the limit. Where full bookkeeping applies, we also handle exchange rate differences and all foreign-currency records.

Do I invoice foreign clients with VAT?

Programming and similar services supplied to companies abroad are generally outside the scope of Serbian VAT, because the place of supply is where the recipient is established. The exact treatment depends on the type of service and the client's status, so we check it case by case.

Can we communicate in English?

Yes — Dragan speaks English, so foreign founders and clients deal with us directly, without an intermediary. The entire engagement can be run online.

Note: this page is informational and does not constitute tax or legal advice.