There are two limits that you have to take care of during your business.
6 million limit – Refers to the income during one calendar year. From 01.01. until 31.12. you can earn an income of 6 million dinars. If this limit is exceeded, you lose the right to lump sum taxation and you can continue as a entrepreneur with books
Additional obligations are required from the entrepreneur with books, such as keeping books, justifying expenses, hiring a bookkeeper, submitting financial statements…
8 million limit – Refers to income generated over a period of 365 consecutive days. This means that from any date in the year to that same date next year, you can generate an income of 8 million.
For example, it may happen that in the last quarter you have a income of 5 million and in the first quarter of the next year another 3 million. When you look at an individual calendar year, the business is within the limit of 6 million, but in the actual 365 days, a turnover of 8 million was achieved. The limit has been reached.
In addition to losing the right to lump sum taxation, exceeding this limit enters the VAT system.
The right to flat-rate taxation can be regained by submitting a request for flat-rate taxation, which is submitted in October, if the conditions are met.
Limits
There are two limits that you have to take care of during your business.
6 million limit – Refers to the income during one calendar year. From 01.01. until 31.12. you can earn an income of 6 million dinars. If this limit is exceeded, you lose the right to lump sum taxation and you can continue as a entrepreneur with books
Additional obligations are required from the entrepreneur with books, such as keeping books, justifying expenses, hiring a bookkeeper, submitting financial statements…
8 million limit – Refers to income generated over a period of 365 consecutive days. This means that from any date in the year to that same date next year, you can generate an income of 8 million.
For example, it may happen that in the last quarter you have a income of 5 million and in the first quarter of the next year another 3 million. When you look at an individual calendar year, the business is within the limit of 6 million, but in the actual 365 days, a turnover of 8 million was achieved. The limit has been reached.
In addition to losing the right to lump sum taxation, exceeding this limit enters the VAT system.
The right to flat-rate taxation can be regained by submitting a request for flat-rate taxation, which is submitted in October, if the conditions are met.