Photo: Kirill Kuhmar
Self-employed citizens after acting “tax holidays” will buy the patents and to pay insurance premiums at a low rate. Such amendments to the Tax code proposed in the Federation Council
The Federation Council has developed amendments to the Tax code which define tax rules for self-employed people from 1 January 2019, after the end of “tax holidays” (for 2017 and 2018, nannies, Tutors and maids are exempt from personal income tax and sotsvznosov).
The bill prepared by the senators Yevgeny Bushmin and Sergey Ryabukhin, suggests that the self-employed will not have to register as individual entrepreneurs (IE), and the tax will be paid in the form of patent — the “fixed advance payment before the beginning of the tax period,” reads the text of the document (there RBC). The document proposes to Supplement the Chapter 26.5 of the Tax code two articles defining the order of application of the patent system to self-employed and the procedure of calculation and payment of insurance premiums, as “uncertainty remains in relation to the taxation of” self-employed after the end of “tax holidays”, reads the explanatory note to the bill.
The size of the patent, the procedure of payment and determination of the tax base will be established separately in each region follows from the explanatory notes. While the self-employed also in advance for a year will pay insurance contributions at the reduced rate of 5% of the minimum wage per month (3% for pension insurance, 2% for medical). For comparison, individual entrepreneurs give for this purpose is 31.1% minimum wage per month.
Based on the size of the minimum wage established on 1 July 2017, the annual amount of insurance contributions for the self-employed would be 4680 RUB “These changes will allow you to create the persons providing such services [services to individuals for personal, home and other issues], transparent conditions of business and payment of the tax to incomes of physical persons and insurance premiums”, — stated in the explanatory Memorandum.
Photo: Grigory Sysoev / RIA Novosti
The lawmakers seek to find a design that would satisfy everyone, said RBC one of the authors of the bill, the Chairman of the Federation Council Committee on budget Sergei Ryabukhin. “We want to offer a framework approach, and the regions themselves will set the rates of patents to decide whether they should be the same for all,” — said riabukhin. The list of categories of self-employed and need to expand, the issue affects a much larger number of people — not just the Tutors, nannies and housekeepers, he said. The document 12 may behind closed doors will discuss in the Federation Council with the relevant departments by the Ministry of labour, Ministry of Finance and Ministry of economic development to submit an agreed version of the draft law to the government.
The Ministry of Finance and Ministry of economic development developed in the Federation Council, the bill has not yet been seen, told RBC representatives of both agencies. The Ministry of labour on the request to the time the material did not answer. To receive the comment from the Deputy Prime Minister for social issues Olga Golodets also failed. The press service of the Ministry of justice said that the bill “in due order for legal examination in Ministry of justice of Russia did not receive” the Ministry jointly with other departments of the works “the legal status of self-employed people”.
Self-employed and the informal sector
Self-employed citizens in Russia now, when their status is still not resolved, refer to the informal economy. According to Rosstat, in 2016, the informal sector employed 15.4 million people (21.2 per cent of total employment). Experts Ranepa, estimating the shadow labour market in the broadest sense, has estimated that it contained 30 million Russians (more than 40% of the economically active population), of which 21.7 million people — those who are additional to the main place of work of unrecorded earnings or receive part of the salary unofficially in “envelopes”. According to Rosstat, the hidden payroll in the country is constantly growing: in 2011 it increased from 6.3 trillion to 10.9 trillion rubles in 2015. The Finance Ministry estimates the volume of informal wages in the country in 12 trillion rubles., said in March, Deputy Finance Minister Volodymyr Kolychev: “6 trillion is the envelope schema, and about 6 trillion rubles. — wage informal sector.”
In 2016, the self-employed paid to 91.7 billion rubles of pension insurance contributions (2.2% of total contributions), told RBC press service of the FIU. But in the definition of Pension Fund in this category include individual entrepreneurs, lawyers, notaries, and farmers, and other individuals for whom premiums are paid (for example, if they work on contract for another individual), and the draft law of the Federation Council is just aimed at those who did not formalize their employment relationship. In turn, the FOMS budget for the year 2016 of 37% was formed from the insurance contributions of non-working population (618 bn), which are paid by the regional authorities. According to the Fund, the number of unemployed, insured in system of obligatory medical insurance, is 85 million people.
Status is not defined
In Russia the status of self-employed officially, is still unclear and could be interpreted as illegal business activities. In December 2016, Russian President Vladimir Putin instructed the government within 2017 to clearly define the legal status of this category of citizens. Work in this area are the Ministry of justice, Ministry of labour, Ministry of economic development and the Ministry of Finance.
Photo: Pavel Smertin / RIA Novosti
Last week the question of the status of self-employed was discussed in the Ministry of justice, the office has not come to a common position, wrote “Interfax”. So, when determining the self-employed the Ministry of justice proposed to come from three criteria: first, “natural persons, independently exercising at your own risk based on personal labor participation activities in the provision of services, execution of works for individuals, aimed at systematically profit”; secondly, it is not registered as an individual entrepreneur; third, do not have employees. These criteria the Department proposes to consolidate the law “On employment in RF”. The Ministry of economic development shares this position, said RBC assistant Minister Elena Lashkina. According to her, the same law should fix the order of registration of natural persons as self-employed citizens, by filing a notification under the simplified form in state agencies. The Ministry of justice the procedure of registration prefer to register in the law “On state registration of legal entities and individual entrepreneurs”.
In turn, the Ministry of labor proposes to amend the law “On development of small and medium business” or develop a separate document. The Ministry of Finance and all offers to abandon consolidate in the legislation the concept of “self-employed citizen,” and the order of registration recorded in the law “On state registration of legal entities and individual entrepreneurs”.
After approval of all positions and determine the status of self-employed people will need to be changes to the Tax code (regarding taxation), and the Code of administrative offences (in terms of exemption from liability for the illegal conduct of entrepreneurial activity), said the Ministry.
Patent — right, down principle — bad
The patent system of taxation is well established in the regulation of employment of migrants, like the lawyer BGP Litigation Natalia Yurchenkova. With the switch mechanism of employment for migrants much easier and people have incentives to comply with the legislation.
Patent approach to the problem of self-employed is itself a good idea, says the rector of Academy of labor and social relations Alexander Safonov, but it is wrong to pay insurance premiums in advance. A patent is a kind of license, after the purchase, they can be used, but you can not use it, he says. “If a person does not happened income he could not earn what he should pay? In fact, it is not the payment of insurance premiums, and additional taxation, which was discussed in the form of a tax on parasites, an analogue,” says Safonov.
The employer pays contributions for employees not in advance, and upon receipt of the employee’s income, experts say, so necessary to the self-employed a similar approach. “For example, a person after some period of time or pay some fees in a fixed amount, or indicates that he is not able to earn” — gives the example Safonov. In this case, a self-employed person will have to deal with the tax, for example, to file a Declaration or to submit statements. While self-employed will be responsible for their actions in the case that it incorrectly stated the result of the activities. If FNS will convict him, you will have to pay, with all penalties and interest payments, he said.