Taxes for self-employed citizens in 2021 – what is the Ministry of Finance developing?

Officials found out that in Russia there is a significant number of citizens who do not work officially, are not unemployed, do not have the status of an individual entrepreneur or lawyer, but earn their living independently.

At the same time, they do not pay taxes and insurance premiums, and do not advertise their activities to government agencies in any way.

Obviously, both officials and the president were not satisfied with this state of affairs, so they decided to bring such citizens out of the shadows, giving them a new definition - “self-employed.”

In 2018-2019 A special tax on self-employed citizens should be introduced into the Tax Code. The Russian Ministry of Finance is working on a corresponding bill.

The legal instructions will tell you who self-employed citizens are, what types of activities in 2021 correspond to the concept of “self-employment”, from the point of view of the Ministry of Finance, what tax on self-employed citizens they plan to legalize in the Russian Federation in 2021.

Who is self-employed?

These are persons who do not have their own employer and superiors. They do not have employees or managers; they work independently. They engage in small trade or provide services to the public and companies of any size.

These people are engaged in professional activities from which they receive income and pay taxes to the state. There are many types of such activities. Here are some activities for the self-employed:

• nannies;
• tutors;
• copywriters;
• cooks;
• taxi drivers;
• seamstresses;
• confectioners.

If in 2021 it began as an experiment, then by mid-October 2021 the tax regime for the self-employed began to apply throughout the country. Previously, people were looking for information in which regions they could become self-employed; they had to have at least one client from the regions where this regime applies. And now this is possible in any region of the country and even for some people from other countries.

Any individual and even an individual entrepreneur can become self-employed if he decides to change his status and switch to a different tax regime.

Tax holidays had no effect

In order for people who earn their own living to become legal, they first decided to use a “carrot” for them: in exchange for registration with the territorial body of the Federal Tax Service, a two-year tax holiday was introduced for self-employed citizens.

According to amendments to the Tax Code, people who decide to officially declare their activities before December 31, 2021 may not pay personal income tax and other taxes, as well as insurance contributions to the Pension Fund and health insurance.

Officials addressed this tempting offer to just four categories:

• child nannies,
• housekeepers,
• tutors,
• caregivers with the sick.

That is, those who independently provide services to other people without involving third parties.

However, as of May 1, 2021, according to the Federal Tax Service of the Russian Federation, only 1,530 people throughout Russia took advantage of this right. Whereas, according to the most conservative estimates of Rosstat, approximately 13.5 million people in the Russian Federation earn their living in this way.

Incomparable numbers, obviously. Therefore, the authorities not only decided to finally approve the status of self-employed people and consolidate it in law, but also to introduce a special tax on self-employed citizens in 2021.

How it works?

Everything is set up as simply as possible. First, a person downloads the application and registers in it as a self-employed person. At the end of registration, he receives a message that he has successfully become self-employed. He performs all other actions through the “My Tax” application. You don't need to go anywhere or do anything complicated. No applications, queues or visits to the tax office. Just an application in which you can now mark your income and pay taxes.

The process is also simple:

• a self-employed person provides a service (records a song, makes soap, etc.);
• transfers it to the buyer;
• receives money for it;
• marks a new sale in the application, indicates the amount of proceeds and saves;
• a record appears that the sale was successful;
• a check is opened that can be sent online to a legal entity or individual if necessary.

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Tax rate

The tax rate for self-employed people will be:

• If entrepreneurs provide services to individuals, the tax rate will be 4%.
• When providing services to legal entities or individual entrepreneurs, the rate will be 6%.

Attention! When providing services to legal entities and individual entrepreneurs, it will probably be more profitable to open an individual entrepreneur, since it will be necessary to issue official documents. In addition, the status of individual entrepreneurs is still higher.

What does this give?

Creating a self-employed regime has many advantages:

• Specialists will be able to legally provide services to the public and companies without fear. Now they will not be afraid that the tax office will audit them and impose many fines.
• The activity will become legal, you can officially work with companies and legal entities. There will be no problems with paperwork when working with legal entities.
• Entrepreneurs will be able to reduce their tax burden and pay less without closing their individual entrepreneurs. They will be able to work in the same mode, but with significantly lower mandatory payments.

In addition, many companies are more willing to work with self-employed people, because in this case their tax burden is reduced. It is more profitable and easier for them to work with the self-employed.

A self-employed person does not need a current account, does not have to provide a tax return, does not require a cash register, and can be combined with his main job.

Department of the MFC “My Documents” - Yaroslavl

Establishment

Who can become?

Any person who operates on the territory of the Russian Federation can become a self-employed citizen. Foreign citizens from Belarus, Kyrgyzstan, Kazakhstan and Armenia can also become self-employed if they have clients in Russia. They are allowed to change the tax regime under the same conditions as citizens of the Russian Federation.

Starting from October 2021, you can become self-employed in any region of the country.

From what age

Any citizen over the age of 18 and between the ages of 14 and 18 can become self-employed if he fulfills one of the conditions and is not an individual entrepreneur.

Who can become self-employed at 14-18 years old:

• who entered into marriage and became legally capable as a result;
• parents or guardians have given written consent to this;
• the court or guardianship authorities recognized him as fully capable in accordance with the established procedure.

In which regions is it used?

The self-employed tax system is experimental. It will come into effect from January 2021. Currently four regions have been identified. Where will this law be used?

These include:

• Moscow.
• Moscow region.
• Kaluga region.
• Republic of Tatarstan.

The list shows that not all regions of the country are participating in the experiment. For example, in the Rostov region this law does not apply.

Attention! 2019-2021 will be decisive. Based on the results of the work of this law in four constituent entities, it will be determined whether this system can fully operate throughout the entire state.

How to accept payments?

A self-employed person can accept payments to any card he has. You can even receive money from clients on the card where your salary from your main job comes.

Many banks currently offer to open an account with them in order to be self-employed. These are actually unrelated concepts. A current account will be required when working with certain companies. If an individual plans to simply give violin lessons or sell homemade cakes to ordinary citizens, then he will not need such an account.

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Geographically separate structural unit of the MFC - Yaroslavl

Where is it issued?

How to become self-employed?

Let's figure out how to become self-employed through State Services and provide step-by-step instructions.

This is the easiest way. After the “My Tax” application is installed on your mobile phone, you need to log in to it. A window will open in which you need to select a registration and authorization method. Through the State Services portal this is the last, but the fastest and easiest among them.

You just need to click on it. Then you will need to enter the standard data that is usually entered when entering the State Services website - SNILS or mobile phone number and password.

Login to the My Tax application

From now on, registration will be semi-automatic. After confirming your personal data, mobile phone number and agreeing to the terms of registration, the citizen will be immediately registered as self-employed.

Data confirmation

If you register using a Russian passport, you will need to take a photo of the passport and yourself next to it. What documents are needed - passport, TIN, SNILS. Usually no other documents are required.

Personal Area

Branch of the MFC “My Documents” - Yaroslavl

Where to get it

Payments and compensation for injury at work in Yaroslavl in 2021

Advantages and disadvantages

Since the advent of the new tax regime, it has had supporters and opponents, because everything has negative sides. Let's take a closer look at the features of this method of work.

What are the advantages of self-employment:

• No mandatory payments. If a citizen has no income, then he will not have to pay any taxes.
• Easy to combine with your main job.
• No need for a cash register. You don’t have to buy an online cash register, you don’t need to process checks through special programs. Everything is processed through the “My Tax” application.
• There is no need to submit a tax return to the inspection authorities. Anything they want to check can be viewed through the app.
• There is no need to visit the tax office, sit in lines, wait for an appointment, or take time off from work. Everything is done online.
• Speed. The entire registration takes only 20 minutes.
• You can come out of the shadows and officially work. There is no risk that the tax office will ask you to present documents confirming your income.
• Tax conditions should not change for the next 10 years. This is enshrined in law as a guarantee.
• Self-employment income is official and verified. A self-employed person can get a loan, a loan or a credit card. Not all banks offer this yet, but their list is constantly being updated with new credit institutions.

But this tax regime also has negative sides:

• You'll have to pay taxes. This is only 4% for working with individuals and 6% for working with legal entities, but not everyone wants to pay even that much.
• Income should not exceed 2.4 million rubles per year or 200 thousand rubles per month. Some masters receive more money; this mode is not available to them.
• Not all types of activities fall under self-employment. If a citizen is going to sell excisable goods, resell them or extract minerals, then he cannot become self-employed.
• You can't have employees. Only one citizen who works for himself can be self-employed. As soon as he has subordinates, he will have to open an individual entrepreneur.

Fines for lack of a patent

Purchasing a patent will protect citizens from punishment for illegal business.

The penalties for not having a patent will be expressed as follows:

• in the form of penalties (up to 2 thousand rubles);
• through additional assessment of taxes and insurance premiums for the entire period of activity without registration, as well as penalties in the amount of 10% of income (at least 40 thousand rubles).

If a self-employed person has received large income without a patent, he may face the following:

• fine up to 300 thousand rubles;
• community service for up to 480 hours;
• arrest up to six months.

Geographically separate structural unit of the MFC - Yaroslavl

Establishment