An entrepreneur is free to dispose of their business profit, i.e., their net income.

Net income (profit) represents the amount remaining after all business expenses have been covered from the revenues.

This applies to both:

• Flat-rate entrepreneurs (paušalci), and

• Entrepreneurs keeping business books (so-called “bookkeepers”).

The funds may be withdrawn in cash at the bank counter, or transferred from the business account to the entrepreneur’s personal account.

According to the Rulebook on Conditions and Manner of Cash Payments in Dinars for Legal Entities and Individuals Engaged in Business, cash withdrawals up to RSD 150,000 can be made without submitting supporting documentation (such as a resolution, decision, contract, invoice, etc.), which would otherwise need to be presented to the bank for review and stamping.
This is regulated under Article 2 of the aforementioned Rulebook.

⚠️ This provision has led to the widespread misconception that entrepreneurs can only withdraw up to RSD 150,000 of net income — and that this limit applies unconditionally.

In reality, if an entrepreneur has generated more than RSD 150,000 in net income, there is no restriction on withdrawing that amount.
However, the bank is obliged under the Rulebook to request supporting documentation for any cash withdrawal above RSD 150,000.
In our view, a self-issued decision by the entrepreneur on the withdrawal of net income is sufficient for this purpose.

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Key Limitations to Observe When Withdrawing Net Income

Net income may only be withdrawn after all liabilities have been settled.

For flat-rate entrepreneurs, these liabilities usually consist of:

• Monthly tax and contributions, as stated in the tax assessment decision, and

• Any outstanding obligations to suppliers.

Once these obligations are met, the remaining funds can be withdrawn.
No additional tax is due upon withdrawal of this net income.

✅ The main limitation for flat-rate entrepreneurs is liquidity — their ability to meet obligations on time.

Withdrawing funds for personal use should not jeopardize business liquidity.
We recommend maintaining a cash reserve on the business account sufficient to cover several months of expenses in case of disruptions.
Alternatively, personal funds can be deposited into the business account to support business continuity.

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Entrepreneurs Keeping Books: Additional Consideration of Profitability

In addition to liquidity, entrepreneurs who keep books must also monitor profitability.
Since withdrawal of net income represents profit distribution, it is important to ensure that the amount withdrawn does not exceed the total profit earned in the current and previous years.

Your accountant can provide insight into your company’s profitability and help you stay within the permitted limits.

We recommend checking at least twice a year:

• How much profit has been generated, and

• How much has already been withdrawn as net income.

As long as the first number is higher, you are within safe bounds.
One of these checks should take place in December, particularly if withdrawals are made regularly — this is your last chance to adjust before year-end.

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Tax Treatment of Withdrawals

Entrepreneurs keeping books do not pay any additional tax on the amount of net income withdrawn, as there is no tax category in the Serbian tax system that applies to this transaction.

They are taxed on the net income earned — the difference between total revenues and expenses.
The moment the profit is withdrawn or used personally is not a taxable event.

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Payment Codes for Net Income Withdrawals

According to long-standing guidance from the Tax Administration:

• For cash withdrawals, use payment code 141

• For non-cash (bank transfer) withdrawals, use code 241
  These codes apply to transfers of net income from self-employment.