The Self-Employed Act: The White House Gave the Green Light

The government of the Russian Federation gave a positive response to a package of three bills on the legalization of income of self-employed citizens. Discussion of this issue has been going on for several years.
Self-Employed Act: The White House Gave

The stated strategic goal of the amendments is to comply with the May decree of Vladimir Putin to achieve the number of people employed in small businesses of up to 25 million people by 2024. The package approved by the White House implies the introduction in Moscow, the Moscow and Kaluga regions, as well as in Tatarstan, on an experimental basis, of a special tax regime - “tax on professional income”. Its rate will be 4% for self-employed individuals providing services to individuals, and 6% for those working with legal entities.
As reported by "Davydov.Indeks", it was previously announced that the experiment will last 10 years - "so that everyone understands that these conditions are constant, no one will take them." One of the authors of the bill, MP Andrei Makarov, also said that in the event of a successful experiment, the list of regions could be expanded, it would be possible to join the new system at any time.
Apply the new tax regime will be able to individuals who receive income up to 2.4 million rubles. per year and having neither an employer nor employees. It is planned that budget expenditures for its implementation until 2028 will amount to 2.28 billion rubles, Kommersant reports.
It is also known that self-employed citizens will not pay personal income tax and VAT, while they will be provided with a tax deduction from the tax amount of 10 thousand rubles. Taxpayers will register without a visit to the FTS, through the application "My tax", developed by the department. They will voluntarily pay insurance contributions to the Pension Fund.
You will not need to keep any reports self-employed, information about sales and services rendered will be transferred to the tax authorities automatically. Compared with other tax regimes operating in Russia, primarily with a simplified tax system, this is largely a preferential regime: limiting income to 200 thousand a month is comfortable for the self-employed, the authors of the bill note.
The law is going to be adopted by the end of 2018, and it is planned that it will come into force on January 1, 2019.
Recall that since 2013, Vladimir Putin has charged the government nine times to resolve the issue of self-employed status, but in the end, the bill was proposed by State Duma deputies.Earlier, the Ministry of Finance, the Ministry of Economy, the Ministry of Labor, the Federal Tax Service, business ombudsman Boris Titov offered various options for removing self-employed people from the shadows, including the introduction of patents worth 10,000 rubles a year, fixed payments, the status of individual entrepreneurs without the right to hire employees.
Later in Russia a law was passed on tax holidays for the self-employed. It allows nannies, carers, tutors and housekeepers not to pay taxes for one more year, provided that they are registered with the tax authorities.
True, the introduction of such a measure did not lead to a radical whitening of the self-employed. According to the Federal Tax Service, as of September 1, 2,300 self-employed are officially registered in Russia, of which more than 300 are foreign citizens. At the same time, according to experts, there are up to 15 million self-employed citizens in Russia.
Vitaly Purichi, an associate professor at the Department of Regional Economics of Altai State University, shares his opinion on the bill: "Institutional problems in Russia are a talk of the town hall. We do not follow the rules and laws and we are proud of it. Social status is determined by what rules we can not follow with impunity.This is due to the fact that the rules we perceive as something that limits us, and not as something that protects us. As a result, we have a situation in which everyone avoids following the rules and laws as much as possible and sharply.
Regular tax innovations are no exception to the general rule. The least protected and vulnerable self-employed workers come under close scrutiny of the regional tax authorities. Of course, nannies and tutors will look for ways to escape from taxation, especially since earnings are unstable, irregular and registered as self-employed will cost more. Tutoring happens before the exams a month or two, and the rest of the time there will be no income. <...> Of course, in 10 years the system, perhaps, will take root, if the budget has a need and ability to collect such taxes. How much will it cost to organize events to ensure the collection of such taxes? And how much will it bring revenue to the budget? Only losses. Psychological effects can be attributed to losses. The population is convinced once again that we are patching holes in the budget at the expense of the poorest strata. Tutors are teachers, nannies are nurses.Categories of workers, not spoiled by incomes, but performing colossal social work. At their expense, we will darn regional budgets. "
Candidate of Economic Sciences, Associate Professor at the Department of Theory and Practice of Management of the Orenburg Branch of the RANEPA Tagir Sharipov sees both advantages and disadvantages in this initiative: “Introducing the“ professional income tax ”causes a dual feeling. self-employed through a mobile application, and not very burdensome tax of 4-6%. However, on the other hand, I see two problems that may arise in the process. First, whether the same nurses will result in the re-registration of some workers check, carers, cleaners - from employees of the organization to self-employed, providing services to legal entities? Then the personal income tax and insurance premium to the Pension Fund will not be paid, but instead will pay a tax of 6%. Secondly, I see no motivation to get out of the shadow by the self-employed. I think they will have the following reasoning: “having paid 4-6% of my income, what will I get?”. Therefore, prepared “carrots” pose more threats than opportunities. ”
As Alexander Solomakhin, Doctor of Economics, Professor, Deputy Director of the Voronezh Branch of the RANEPA, notes, the efficiency of taxation of self-employed cannot be achieved without modernizing the tax system of Russia as a whole: "Our Tax Code is designed in such a way that the self-employed can called the simplified system), or on the patent system. The problem lies in the administration of taxes, arranged so that any inaccuracy is fraught. The administration of taxes does not stimulate the self-employed to get out of the shadow. I’m sure that until order is established here, no mobile applications, chips and gadgets will force people to legalize. It’s because of the ugly administration of taxes today 80% do not want to get out of the shadows. It is easier for them to pay a fine for their activities than to open up. "
Well, something like this.
The full version of the material with detailed comments of experts can be read here.
Agenda, trends, opinions, exclusive. Informally on the Telegram-channel "Davydov.Indeks".

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