In standby mode: SF proposed to end the experiment with the "self-employed tax" ahead of schedule

The experiment with the professional income tax may be completed as early as 2026. This initiative was put forward by the Federation Council. However, the self-employed should not worry: even after the transformation of the regime, it will not be about liquidation, but about improving the system, according to the Federation Council. Meanwhile, the head of the Ministry of Economic Development of the Russian Federation, Maxim Reshetnikov, previously stated that the experiment would last until 2028, as planned. Whether the special tax regime for the self—employed will be abolished is in the Izvestia article.

When will the experiment be stopped?

They want to complete the experiment with a tax on professional income (that is, with a tax for the self-employed) ahead of schedule. The corresponding proposal was received from the Federation Council. The recommendation is contained in the resolution of the upper house of Parliament dated October 8 "On the current situation in the economy and the main tasks of socio-economic development." It was formulated following the results of the government hour with the participation of the head of the Ministry of Economic Development Maxim Reshetnikov.

The senators recommended that the government of the Russian Federation analyze the results of the experiment and work out the issue of ending the special tax regime in 2026 based on the results of this analysis.

The upper house of Parliament also proposed that the Cabinet of Ministers develop additional measures to "prevent the practice of underestimating the tax base for calculating personal income tax when hiring employees."

By the way, earlier, Russian President Vladimir Putin instructed the government to submit proposals to improve the parameters of the taxation system. In particular, it was about adjusting the NAP system.

The position of the Ministry of Economic Development and the Cabinet of Ministers

Maxim Reshetnikov, the head of the Ministry of Economic Development, also pointed out the need to start work on making changes to the concept of the self-employed regime. At the government hour held in September, he noted that the deadline for the end of the experiment with them "is just around the corner."

However, the head of the department recalled that no changes in the working hours of the self-employed are planned until 2028, specifying that this is "the government's principled position." Later, the Ministry of Economic Development issued a press release, which also emphasized the lack of plans to change the working hours of the self-employed in the near future.

The Ministry's position has not changed since September. In an interview with Izvestia, the Ministry of Economic Development recalled that the deadline for the implementation of the experiment on the establishment of a special tax regime "Tax on professional income" ends in 2028.

"No decisions will be made before this moment," the ministry's press service stressed.

The Government of the Russian Federation also announced that there were no plans to change the working hours and taxation of the self-employed before the end of the experiment.

"There are no plans to change the working hours of the self-employed before the experiment expires. The experiment has been conducted since 2019 and will end in 2028. During these years, the tax conditions remain the same," the press service of the Cabinet of Ministers quotes TASS.

What is a tax on professional income?

The professional income tax is a special tax regime designed for citizens who are self—employed. For this reason, it has been given the unofficial name "self-employed tax".

The NAP began to be applied in 2019 after the launch of an experiment with the self-employed. This tax regime is established throughout the Russian Federation.

Today, the self—employed deduct 6% of their income in the form of a tax when working with legal entities and 4% with individuals. This, according to the Federal Tax Service, allows you to legally conduct business and earn income from part-time work without the risk of receiving a fine for illegal business activities.

By the way, the Federal Tax Service also has plans to adjust the NAP system. On Tuesday, October 7, the agency posted a survey on the tax rate in their personal accounts on the My Taxes website, inviting the self-employed to name a "fair" percentage of their income that they are willing to pay. The survey presents 11 possible betting options. They range from 0 to more than 20%.

What does early termination of the NAP experiment mean?

Vadim Zasko, Dean of the Faculty of Taxes, Audit and Business Analysis at the Financial University under the Government of the Russian Federation, is convinced that the proposal to analyze the experiment on the application of professional income tax has every reason.

In the context of the conversation about the possibility of completing the experiment, the analyst identifies several key factors. The first of them is the expediency of discussing this issue at a time when the experiment is actually coming to an end. After all, the need to preserve public confidence in previously adopted legislative decisions remains important.

"In this regard, it is worth paying attention to the repeated statements by representatives of both the executive and legislative authorities about their commitment to bringing the experiment to its logical conclusion within the established time frame," the source said.

The rejection of this regime, in his opinion, creates risks of an increase in the shadow sector of the economy. And this contradicts the concept of whitewashing and increasing sources of budget revenues.

The fairness of the tax system today requires equalizing conditions between different categories of taxpayers, said Tatiana Safonova, Adviser to the Tax Service of the first rank, head of the practice of Financial Market Development Strategy at O2 Consulting.

"However, if company employees pay 13% personal income tax and have labor guarantees, then the self—employed carry more business risks and do not have a stable income, so the same tax rates for them would be unfair," the Izvestia interlocutor believes.

The optimal rate for the self-employed may be 8-10%, since the current 4-6% looks underestimated compared to the tax obligations of employees under an employment contract, she believes.

In this regard, the tax regime is more likely to be canceled, admits Alexander Usov, a tax consultant and managing partner of Alliance Partners Group. The self-employed regime, which was originally introduced as an experiment, may also be canceled ahead of schedule. Perhaps this will happen as early as 2026 or 2027.

— This decision will depend on the position of the authorities, but the development of the situation may be unfavorable for taxpayers: taxes and contributions are likely to increase. At the same time, those who currently work as self—employed may be required to switch to the status of an individual entrepreneur in order to ensure the receipt of insurance payments, the expert expects.

Why is it necessary to change the tax regime?

The Federation Council is currently looking for additional sources of budget revenue in order to service the healthcare system in the future, Alexander Usov draws attention. Federation Council speaker Valentina Matvienko previously reported that about 70,000 people do not pay insurance premiums, but use medical services, the expert recalls. In his opinion, self-employed citizens who do not make contributions to the insurance system are also included in this category.

"And insurance premiums are a key element of a medical care system based on the principle of solidarity," the Izvestia source emphasizes.

Tatiana Safonova also points out the need to introduce mandatory insurance premiums for the self-employed. She notes that sustainable financing of the pension system remains an important task.

"The regime of the self—employed raises questions, since at rates of 4 or 6% they do not actually participate in the social system, do not pay contributions and do not receive pension rights," the expert explains.

The experiment on professional income tax, according to Safonova, did not fail, but turned into a "zone" with an excessively low tax burden. She believes that the authorities will eventually decide to introduce mandatory insurance premiums or reform the self-employed regime in order to make the tax system more balanced and fair.

What to do for the self-employed in case of cancellation of the NAP regime

Senator Oleg Golov also points to the transition to a more equitable regime. He argues that the Federation Council's recommendation to end the experiment in 2026 is not the abolition of the institution of self—employment, but the transition from an experimental regime to a permanent system.

— In six years, the experiment has proved its effectiveness — 14.3 million people have legalized their income. However, we also see serious problems. Employers massively abuse the regime, substituting employment contracts with the self-employed. People are deprived of social guarantees, they do not form a pension. This is unacceptable," the Izvestia source emphasizes.

The completion of the experiment means the creation of a more advanced system that will preserve simplicity and benefits, but eliminate abuse and add social protection, the senator is convinced.

— The self-employed do not need to worry. The government has made a clear promise not to revise the law until 2028, and this is a principled position. Even when the regime is transformed, it will not be about eliminating it, but about improving it," Golov believes.

The state will not abandon the institute, which involves more than 14 million citizens, he is sure.

— The new mode will retain the key advantages — ease of registration, clear reporting, preferential rates. At the same time, social protection elements that are currently lacking will be added. My advice to the self—employed is to continue working as usual, follow the rules and follow official decisions," the senator sums up.