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. Income is calculated based on issued invoices and KPO book. 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. Income is calculated based on issued invoices and KPO book. 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. Income is calculated based on issued invoices and KPO book. 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. Income is calculated based on issued invoices and KPO book. 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.