Taxation of freelancers in selected countries before and during the pandemic of the virus COVID-19

Abstract

With the emergence of the COVID-19 virus pandemic, a new type of work engagement is coming to the fore, which implies remote work, i.e. work from home. This type of employment is known as freelancing. This document will present the taxation of freelancers in the Republic of Serbia, the Republic of Croatia, and Bosnia and Herzegovina before and during the COVID-19 virus pandemic. The document will present all taxation models in detail, as well as their shortcomings and recommendations for improvement. From the analysis, we can see how the Republic of Croatia, as a member of the European Union, defined the legal status of these workers, and how it was done by the Republic of Serbia and Bosnia and Herzegovina, which are not members of the European Union, but which are gradually adapting their legislation to the European Union. The assumption is that during the analyzed period, the number of freelancers in these countries increased significantly, primarily due to the measures adopted to prevent the spread of the COVID19 virus pandemic. This paper should also point out the importance that freelancers have for all countries in terms of generating income based on their taxation.