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Published: 07/31/2019
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Reduced insurance premium rates are an opportunity for organizations to pay insurance premiums for their employees at a reduced rate.
- Payers of insurance premiums
- Use of reduced tariffs
- Payment for individuals
- Conditions for applying benefits
Benefits on insurance premiums are regulated by such regulations as:
- Article No. 427 of the Tax Code of the Russian Federation.
- Federal Law No. 303 of 08/03/2018.
- By letter of the Federal Tax Service of the Russian Federation No. BS-4-11/ [email protected] dated May 30, 2019.
- By letter of the Ministry of Finance of the Russian Federation No. 03-15-06/54260 dated 01.08.2018.
How beneficiaries pay
According to the Tax Code of the Russian Federation, issues of reduced insurance premiums are regulated by Art. 427. They are used within the established maximum value of the base for calculating insurance premiums for the corresponding type of insurance (clause 2 of Article 427 of the Tax Code of the Russian Federation).
Also note that paragraphs 4 to 13 of this article list the conditions the fulfillment of which gives each preferential category of payers the right to a reduced rate of insurance premiums.
Traditionally, the amount of reduced insurance premium rates in 2020 is relevant for companies and merchants from certain areas and/or with a certain legal status. For example, these are special regime officers from the IT technology sector, residents of special economic zones, participants in the Skolkovo project and others.
The following is a table of reduced insurance premium rates for 2021 for the main categories of payers who are eligible for them in 2021.
| INSURANCE HOLDERS | RATES AND CONDITIONS |
| Non-profit organizations (except for state/municipal institutions) on the simplified tax system, conducting activities in the field of social services for citizens, R&D, education, healthcare, culture and art, mass sports (except professional) | During 2017-2024: · on OPS – 20.0%; · in case of VNiM – 0%; · on compulsory medical insurance – 0%. |
| Charitable organizations on the simplified tax system | |
| Russian organizations in the IT field | During 2017-2023: · on OPS – 8.0%; · for compulsory medical insurance – 4.0%; · in case of VNiM – 2.0%; · in case of temporary disability from payments to foreigners (stateless persons) temporarily staying in the Russian Federation (except for highly qualified specialists) - 1.8%. |
| Organizations participating in the Skolkovo project | For 10 years from the 1st day of the month following the month in which the project participant status was received: · on OPS – 14.0%; · on compulsory medical insurance – 0%; · in case of VNiM – 0%. The benefit can be applied for less than 10 years. |
| Organizations (IP) that received the status of participant in the free economic zone (FEZ) in Crimea and Sevastopol no later than 3 years from the date of its creation (no later than 12/31/2017) | Within 10 years from the date of receipt of the status of a FEZ participant: · on OPS – 6.0%; · for compulsory medical insurance – 0.1%; · in case of VNiM – 1.5%. 10 years are counted from the 1st day of the month following the month of inclusion in the register of FEZ participants. Tariffs apply to payments to employees involved in an investment project in the FEZ. |
| Residents of the territory of rapid socio-economic development (PSED), who received the specified status no later than 3 years from the date of its creation (except for residents of the TASED in the Far Eastern Federal District). Residents of TASED in the Far Eastern Federal District, who received their status before 06/25/2018 inclusive and no later than 3 years from the date of creation of the specified territory (investment volume - at least 500,000 rubles) Residents of PSEDA in the Far Eastern Federal District, who received their status from 06/26/2018 to 12/31/2025 inclusive (investment volume - at least 500,000 rubles) | Reduced tariffs apply exclusively to individuals employed in new jobs. Reduced contribution rates apply for 10 years of residence: · on OPS – 6.0%; · for compulsory medical insurance – 0.1%; · in case of VNiM – 1.5%. 10 years are counted from the 1st day of the month following the month of registration as a TASED resident. |
| Organizations (IP) that received resident status of the free port of Vladivostok (FPV) before 06/25/2018 inclusive and no later than 3 years from the date of entry into force of the Law of 07/13/2015 No. 212-FZ “On the Free Port of Vladivostok” (volume of investments – at least 5 million rubles). Organizations (IP) that received FPV resident status from 06.26.2018 to 12.31.2025 inclusive (investment volume - at least 5 million rubles) | Reduced tariffs apply exclusively to individuals employed in new jobs. Reduced contribution rates apply for 10 years from the date of obtaining resident status: · on OPS – 6.0%; · for compulsory medical insurance – 0.1%; · in case of VNiM – 1.5%. 10 years are counted from the 1st day of the month following the month of registration as a resident of FPV. |
| Organizations that are included in the unified register of residents of the Special Economic Zone (SEZ) in the Kaliningrad region from 01/01/2018 to 12/31/2022 inclusive | Within 7 years from the date of obtaining resident status (deadline – until December 31, 2025): · on OPS – 6.0%; · for compulsory medical insurance – 0.1%; · in case of VNiM – 1.5%. 7 years are counted from the 1st day of the month following the month of inclusion in the register of SEZ residents. |
| Payers making payments and other remuneration to crew members of ships registered in the Russian International Register of Ships | All contributions – 0% |
| Russian animation companies |
|
Are there any benefits for retired entrepreneurs?
In addition to the specified exemption for fixed insurance contributions for themselves, individual entrepreneurs of retirement age do not have other benefits regarding social insurance payments.
Support measures provided for by law include:
- abolition of the tax on real estate owned personally and not involved in business activities;
- additional preferences established by resolutions of local authorities.
For example, the Moscow government, by regional resolutions, provides for the provision to pensioners of:
- the right to free travel by public city transport (excluding taxis and minibuses);
- preferential (free of charge or with significant discounts) purchases of medicines according to prescriptions prescribed by doctors;
- discounts on travel on commuter trains.
Related article: Contributions to OSS in case of disability or in connection with maternity
Certain subsidies are assigned to pensioners for paying for the services of utility organizations.
But otherwise, the legislation does not provide benefits for individual entrepreneurs of retirement age. On the contrary, while engaging in entrepreneurship, an individual entrepreneur retains the status of a working pensioner, which cancels the annual indexation of pensions as compensation for the adverse impact of inflationary processes.
It is also important to take into account that tax and insurance benefits are not provided for individual entrepreneurs who are pensioners in the event of being assigned a disability group.
What has changed since 2021
Please note that from 01/01/2020, reduced insurance premium rates cannot be applied to the following categories:
- business societies and business partnerships that are engaged in the practical application (implementation) of the results of intellectual activity (computer programs, databases, inventions, utility models, industrial designs, breeding achievements, topologies of integrated circuits, production secrets (know-how)), exclusive rights which belong to the founders, participants (including jointly with other persons) of such societies, participants of such partnerships - budgetary scientific institutions and autonomous scientific institutions or educational organizations of higher education that are budgetary institutions, autonomous institutions;
- organizations and individual entrepreneurs that have concluded agreements on technology-innovation activities with the management bodies of special economic zones and make payments to individuals working in a technology-innovation SEZ or industrial-production SEZ, as well as organizations and individual entrepreneurs that have entered into agreements on tourism and recreational activities and make payments individuals working in tourist and recreational SEZs, united into a cluster by decision of the Government of the Russian Federation.
How to take advantage of tax holidays
New individual entrepreneurs using the simplified tax system at the registration stage or within 30 days from the date of registration submit a tax application for the application of the simplified tax system in form 26.2-1.
The 0% tax rate will need to be indicated when submitting your annual return.
If you worked until the end of the first calendar year and submitted reports at the regular tax rate without taking advantage of the tax holiday, then you will no longer be able to return taxes for this year.
New individual entrepreneurs on PSN at the registration stage submit an application in form 26.5-1, indicating in it a tax rate of 0% and the regional law on tax holidays.
The situation of simplifiers: what about the preferential tariff?
KEEP IN MIND!
From 2021, only charitable and socially oriented non-profit organizations have the right to pay reduced insurance premiums under the simplified tax system. That is, small and medium-sized businesses, as well as individual entrepreneurs using a simplified system, pay contributions at the general rate in 2021.
Law No. 303 dated 08/03/2018 “On amendments to certain legislative acts of the Russian Federation on taxes and fees”, in particular, extends for 2019-2024 the application of reduced insurance premium rates in the amount of 20% only for the following categories of payers:
- socially oriented NPOs in a simplified manner and conducting activities in the field of social services for citizens, R&D, education, healthcare, culture and art (theatres, libraries, museums and archives) and mass sports (except professional);
- charitable organizations on the simplified tax system.
Read also
22.09.2019
Insurance premiums for individual entrepreneurs for themselves in 2021
In 2021, individual entrepreneurs must pay at least 36,238 rubles for themselves. This amount is made up of:
- payments for compulsory pension insurance in the amount of 29,354 rubles;
- payments for compulsory medical insurance in the amount of 6,884 rubles.
For less than a full year of business activity, the annual amount is recalculated accordingly. Thus, an individual entrepreneur who registered on April 15, 2021 must transfer only 25,644 rubles for his insurance.
But if the entrepreneur’s annual income exceeds 300,000 rubles, he must also pay an additional contribution to his pension insurance. It is calculated as 1% of the amount of annual income exceeding 300,000 rubles. For example, with an income of 720,000 rubles received in 2021, the additional contribution will be (720,000 − 300,000) * 1% = 4,200 rubles.
You can calculate the specific amount of insurance premiums for yourself using our free calculator.
Payment reporting - online
Firms and entrepreneurs that issue rewards to the following individuals must accrue payments at general rates:
- hired employees;
- performers of works or services under GP contracts;
- owners of exclusive rights - when transferring fees for the purchase of these rights or their temporary use, etc.
All existing insurance payment rates are divided into:
- are common,
- reduced,
- additional,
- fixed.
Employers must report payments from remuneration to individuals to the tax office and the social security fund. What reports need to be submitted - read in Table 4.
Table 4. Payment reporting - online
| Report | Where to report | Code to take | useful links |
| SZV M | To the Pension Fund | By the 15th day after the end of the month | The BukhSoft program creates any reports and checks them using control ratios. Try it for free: Prepare SZV-M |
| Calculation of insurance premiums | To the tax office | By the 30th day of the month after the end of the period | The BukhSoft program automatically creates, verifies and sends tax reports. Try it for free: Prepare calculation |
| 4 FSS on paper | In the FSS | By the 20th day of the month after the end of the period | The BukhSoft program checks any reports using control ratios. Try it for free: Prepare 4-FSS |
| 4 FSS as a file | By the 25th day of the month after the end of the period |
Fixed payments are contributions made by entrepreneurs and private practitioners “for themselves.” Private practitioners include individuals who have a private practice that generates income for them, including:
- notaries,
- lawyers,
- mediators,
- patent attorneys,
- arbitration managers, etc.
Unlike companies that transfer insurance payments monthly, entrepreneurs and private owners pay premiums “for themselves” once or twice a year. More details about the deadlines for transfers are in Table 7.
Table 7. Deadlines for fixed payments
| Payment | Deadline date | ||
| According to the rules | For 2021 | For 2021 | |
| On OPS with an income of 300,000 rubles. or less | By December 31 of the reporting year | January 9, 2021 | December 31, 2021 |
| On OPS with an income of 300,000 rubles. and more | By July 1 next year | July 1, 2021 | July 1, 2021 |
| On compulsory medical insurance | By December 31 of the reporting year | January 9, 2021 | December 31, 2021 |
