How employers will file reports in 2021

Deputies of the lower house of parliament adopted a bill leading to changes in tax policy from January 1, 2021

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It consists of a number of amendments to the Tax Code. What changes await taxpayers with the adoption of the new law, and what they need to be prepared for next year, can be found out in the document developed by the Ministry of Finance and sent for approval to the Federation Council. How will taxes and legislation change in 2021?
On November 17, 2021, the State Duma, by a majority vote, supported in the third final reading bill No. 11078-7 “On amendments to parts one and two of the Tax Code of the Russian Federation and certain legislative acts of the Russian Federation.” The legislative initiative is aimed at implementing certain provisions of the main branches of tax policy presented by the Ministry of Finance of the Russian Federation. After the first reading, 20 amendments to the Tax Code, contained on 44 pages, were added to the document by another 57 pages of amendments by officials and deputies.

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The Ministry of Finance proposes to reduce direct taxes and fees.
The draft law of the Ministry of Finance indicates that changes will be made to various chapters of the first and second parts of the Tax Code of the Russian Federation. To a greater extent, they involve an increase in the tax burden or other measures aimed at increasing budget revenues at all levels of the state management system. True, at the initiative of Russian President Vladimir Putin, an increase in the income limit for individual entrepreneurs on the simplified tax system was introduced into the bill. In addition, officials are going to allow the payment of taxes for third parties, as well as exclude interest-free loans between Russian residents from the list of controlled transactions. Upon closer examination of the bill, both positive and negative changes can be noted.

Penalties for non-payment of taxes will increase for legal entities

The Ministry of Finance included in the bill an increase in the amount of penalties for organizations and entrepreneurs who did not pay taxes on time, to 1/150 of the Bank of Russia refinancing rate, starting from 31 days of delay.

By the second reading, deputies softened and excluded this measure for individual entrepreneurs, leaving it at the level of 1/300 of the refinancing rate. At the same time, legal entities will still have to come to terms with the new price for late payment of taxes.

Desk audits of insurance premiums will be carried out by the Federal Tax Service of Russia

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Low-income Russians may be exempt from income tax.
The next amendment to the Tax Code is not the most pleasant for taxpayers, since it is aimed at strengthening fiscal control over insurance premiums, the administration of which will be transferred to the Federal Tax Service of Russia from January 1, 2021.
Deputies supported the proposal of the financial department, when conducting a desk tax audit of the calculation of insurance premiums, the territorial tax authority will be able to require from the organization paying insurance premiums all the information and necessary documents that confirm the validity of reflecting amounts not subject to insurance premiums and the application of reduced insurance premium rates . This amendment introduces additional control over calculations of insurance premiums, which next year all insurers-employers will submit to the Federal Tax Service. At the same time, tax authorities will request from payers all additional documents and explanations for all calculations, which will indicate the amounts of various benefits, including information on sick leave. This change will add more work to accountants, who will need to send a response to every request from the Federal Tax Service.

An increase in excise taxes is inevitable

State Duma parliamentarians supported an increase in excise taxes on fuel, tobacco and wine. In addition, deputies introduced a new excise tax on electronic cigarettes. The new excise tax on wine will be double the current one. For wines with a protected geographical indication or protected designation of origin (other than sparkling wines), as well as wines produced without the addition of rectified ethyl alcohol, excise taxes from the beginning of next year will be 18 rubles per liter instead of 9 rubles. Excise taxes on mead, cider and poire were also increased - from 9 to 21 rubles per liter.

The government and parliament decided to increase excise taxes on gasoline of the fourth and fifth classes to 13,100 and 10,130 rubles per ton, respectively. Thus, from January 1, 2021, the excise tax price for the fourth class will increase by 800 rubles, and for the fifth class - 2,700 rubles per ton. The cost of diesel fuel will include an excise tax of 6,800 rubles per ton.

The excise tax rate on tobacco products next year will be 4,800 rubles per kilogram of heated, pipe, smoking, chewing, snuff and hookah tobacco. The bill states that in the period 2017-2019. Every year the excise tax will increase by 1%. From 2021, manufacturers and importers of electronic cigarettes will pay excise duty. The excise tax will be levied on nicotine-containing liquid - for 1 milliliter its rate will be 10 rubles, and one electronic cigarette will rise in price by at least 40 rubles.

Direct tax increase

From 2021, excise taxes on diesel fuel have increased - from 5.3 thousand to 6.8 thousand rubles per ton. The excise tax on gasoline was also increased, but a little earlier. Since April 1 last year, it has increased by 1 ruble per liter - to 10,130 rubles per ton. At the beginning of January, people began to complain about rising prices. Governor of the Kemerovo region Aman Tuleyev appealed to Prime Minister Dmitry Medvedev with a request to stop the rise in gasoline prices in the region. “Since January 1, in the regions of Siberia, the cost of all types of gasoline has increased again - by an average of 20 kopecks per liter. In Kuzbass it is about 34 rubles,” the press service of the regional administration reported. Last week, price increases were also felt in Moscow. For example, Lukoil raised gasoline prices by 20 kopecks, and at gas stations under the BP brand, fuel went up by 10-30 kopecks.

Alcohol and cigarettes will also become more expensive. The specific part of the excise tax on cigarettes rose from 1 thousand 250 rubles to 1 thousand 562 rubles per thousand packs, and the ad valorem part (it is paid by manufacturers on products costing more than 71.7 rubles per pack) - from 12 to 14.5% of the cost, although Philip Morris International) asked to keep it at 13%. At the same time, they plan to increase the specific part by 10% every year for three years. During this time, cigarettes will rise in price by about 20%. The excise tax rate for all types of tobacco has increased to 2,520 rubles per kilogram. In addition, excise tax is now imposed on electronic cigarettes (the rate is 40 rubles per piece), liquid for them (10 rubles per 1 ml) and heated tobacco (4,800 rubles per kg).

There was no increase in excise taxes on sparkling and regular wines produced from Russian raw materials. The size remained unchanged - 5 rubles per liter. But the excise tax on imported wine was doubled - to 18 rubles per liter, and on champagne - from 26 to 36 rubles. Excise tax rates on cider, poire and mead (even Russian) will increase from 9 to 21 rubles per liter until 2021. Excise taxes on alcoholic beverages below 9% rose from 400 to 418 rubles per liter, and above - from 500 to 523 rubles. Experts believe that the changes will have little effect on the price of imported classic wines, but strong alcohol and champagne should rise noticeably in price.

The excise tax on producers of beer and beer drinks with an ethyl alcohol content from 0.5% to 8.6% was 20 rubles per liter in 2021, and in 2021 - already 21 rubles. For stronger beer and beer drinks in 2021 they paid 37 rubles per liter, and in 2017 - 39 rubles per liter.

Interviewees Inc. Experts believe that one of the most important innovations is the limitation of the ability to take losses into account in profits. Now taxable profit can be reduced by losses from previous years by no more than 50%. Previously, companies could deduct all losses from profits and not pay income tax for years. Now, if the losses amount to a billion rubles and the profit is 200 million, you can reduce the profit by losses, but not by more than 100 million. “Because of the restrictions on writing off losses, people essentially have to pay tax on profits that don’t yet exist,” he complains in a conversation with Inc. head of legal analytical service Vadim Zaripov.

From 2021, the maximum trading tax rate for companies organizing retail markets has also increased. Now it is 680.35 rubles per 1 square meter, taking into account the coefficient of 1.237 instead of 634.70 rubles. with a coefficient of 1.154. According to Semyon Yankevich, a senior researcher at the department of financial, tax and budget legislation at the Institute of Legislation and Comparative Law, the fee is paid by everyone who is engaged in trade and uses the relevant facilities: shops, pavilions, tents, kiosks, auto shops. So far it has been introduced only in Moscow. “Quarterly rates for trading through stationary retail chain facilities, depending on the area, vary from 21 to 81 thousand rubles,” the expert concluded.

The burden of mineral extraction tax (MET) on oil and gas companies is also increasing. Because of this, oil companies are cutting back on investments. Lukoil, for example, by 45–50 billion rubles, that is, 9–10% of investment plans for 2021, says company president Vagit Alekperov. Gazpromneft is also reducing its investment program. The tax burden for oil workers in 2021 may increase by 200 billion rubles. The increase in taxes is actively promoted by the Ministry of Finance, although the Ministry of Economic Development is against it.

They raise taxes without officially touching them. “Since 2015, the list of property objects for which tax is determined as cadastral value has been expanded. This entails an increase in the tax burden tenfold,” said Inc. Yankevich from the Institute of Legislation. Officials decided to gradually, until 2020, switch from inventory and residual to cadastral value of real estate. In 2015, the tax was calculated as 20% of the payment based on the cadastral value and 80% on the inventory value; in 2021, the proportion was already 40 to 60%.

This year, 9 more regions began paying tax on the cadastral value of real estate; now it is collected in 71 regions of the country (almost everywhere). The rate is set by local authorities, in some regions it has increased with a ceiling of 2%. According to Kostalgin from Taxadvisor, the state often inflates the cadastral value. It can only be challenged in regional commissions and in court. Previously, the tax could be recalculated only in the event of a technical error made by the cadastral registration authority, but now the type of error does not matter.

Tax guarantee and interest-free loans

The amendments introduced changes to Art. 105.14 of the Tax Code of the Russian Federation, excluding from the list of controlled transactions two actions between Russian taxpayers at the same time:

• interest-free loans between organizations and/or individuals registered or residing outside of Russia;
• guarantee for tax payments for VAT and excise duties.

Such agreements will no longer be recognized as controlled, even between interdependent persons, and the guarantee of other organizations will become a full-fledged alternative to a bank guarantee. The Tax Code lists all the requirements for organizations wishing to become tax guarantors, as well as their responsibilities.

Plus one percent in favor of the federal budget

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Starting from 2021, the distribution of funds that go to the budget at a twenty percent income tax rate will change.
From the beginning of 2021, regional budgets will receive only 17% from taxpayers, and not 18% as this year. At the same time, revenues to the federal budget from next year will amount to 3% income tax. According to deputies and officials, this percentage was taken as assistance to subsidized Russian entities. Thus, the state will take care of the poor regions at the expense of the rich. Amendments regarding the taxation of corporate profits were made to Article 265 of the Tax Code of the Russian Federation. They talk about restrictions on reducing the tax base for income tax on losses of previous years. Taxpayers will have the opportunity to reduce the basis by no more than 50%, so they will still have to pay tax on half of the profit. The positive side is that the limitation on the period for carrying forward losses (10 years) ceases to apply. In addition, deputies expect to introduce such a procedure by approximately 2021.

Mentioned in the draft law on the formation of a reserve for doubtful debts from legal entities. This indicator is of great importance when calculating income tax, and therefore legislators decided to clarify some of the nuances. In particular, they added to Article 266 of the Tax Code of the Russian Federation a new concept of doubtful debts under counter obligations.

“If a taxpayer has a counter-obligation (accounts payable) to a counterparty, doubtful debt is recognized as the corresponding debt to the taxpayer to the extent that exceeds the specified payables of the taxpayer to this counterparty,” the document says.

In addition, mandatory reserve funds for repaying doubtful debts in domestic organizations from next year may reach 10% of the tax base for the entire previous tax period, and not for the first quarter of the current one, as described in the current legislation (Article 266 of the Tax Code of the Russian Federation).

Taxes will increase in Russia in 2021

At the end of August, the volume of the Reserve Fund decreased by 18.4%. This year, the Ministry of Finance has already used its funds three times to cover the budget deficit, allocating 1.17 trillion rubles for these purposes. By September, 2.09 trillion rubles remained in the fund, and the pace of spending is such that by the end of the year the stash may shrink to mere crumbs - only 980 billion. Next in line is the National Welfare Fund with a reserve of 4.7 trillion rubles.

In conditions of either a protracted crisis or a recession, they may well not be enough to last through the period between the parliamentary and presidential elections. And then what? There is only one way out - to raise taxes.

Russia has no right to come to the 2018 elections exhausted. This means that there is a clearly limited time period for improving the economic situation - 2021. What is he preparing for us? There are two main concerns: rising prices and rising taxes. But it is already known from the experience of previous crises how belt-tightening kills the economy while simultaneously provoking protest.

What are the departments planning?

Presidential aide Andrei Belousov recently pleased the public with the statement that “taxes always need to be reduced.” This was a response to the Ministry of Finance’s ideas regarding increasing basic taxes, in particular VAT, personal income tax, income tax and insurance premiums. An increase of 1 percentage point in each of the key taxes could bring the treasury from 170 to 324 billion rubles. However, there is no information yet from the government about its readiness to raise taxes in the coming year.

But according to our data, several departments are simultaneously preparing their proposals to increase taxes.

Other tricks are also considered. For example, reducing insurance premiums with a simultaneous increase in VAT. But in any case, this will not happen before the presidential elections, that is, somewhere by the end of 2021. The Ministry of Finance will present its plans to the general public only after the parliamentary election passions have subsided. If he introduces it.

Stable individuals

As you know, the Russian tax system works with two types of payers - legal entities and individuals. The latter contribute to the treasury transport payments, taxes assessed on property and any types of income of individuals - personal income tax. Receipts from individuals are the most reliable, predictable and stable source of financial revenue for the state. The list of taxes that organizations pay is more varied and depends on a number of specific circumstances.

Personal income tax - the employer deducts a known 13% from wages. The Kremlin and the Duma are considering raising this rate to 15%, but not earlier than 2021. And in 2017, the Ministry of Finance plans to receive 3.4 trillion rubles from this tax.

The battles over the introduction of a progressive scale of personal income tax continue. The income of the first couple of hundred Russians exceeds the earnings of all other citizens. They not only opposed raising taxes for a long time, but also openly blackmailed them - if you raise them, we’ll take everything offshore. Now that anti-offshore legislation has been brought to life, and control over foreign accounts will come into force in 2021, it’s time to raise taxes on the income of the rich, if not to the European 50%, then at least double the current one, to 25%. It will be difficult to push such an increase through the Duma and the Federation Council, which are entirely composed of millionaires, but a couple of percent (up to 15%) will apparently begin to be withdrawn from their fat income.

Property taxes are annual payments for real estate. Unfortunately, apartments, dachas and garages, minus a few “required” square meters, will now cost our citizens much more. Calculation based on the cadastral value has already led to the fact that payments for land and dachas have jumped significantly, or even by orders of magnitude, in a couple of years. From a purely formal couple of hundred rubles a year, the tax office now “surprises” with several thousand. And this is not the limit. Now that everyone has been counted, i.e. carried out cadastralization and assessment of objects, taught people the importance of this law, we should expect a gradual increase in rates. It will be difficult to reproach the government and legislators - whoever owns expensive property should not forget to give back to the state, so to speak, to share. However, errors in cadastral valuation have already become the site of eternal battles. Sometimes prices differ significantly from market prices. Our publication has come out with a proposal more than once, and now we are hearing support from experts - if the state is confident that its cadastral value is 30% below the market, then let it be ready to buy it with an open offer based on this valuation. If the statistics do not lie, then even having made a mistake in a couple of places, the state should, on average, inevitably become rich. However, we do not see support for such an initiative from Rosreestr and the Duma members.

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Transport tax is more complicated. It is paid by the owners of cars and other vehicles. Now the amount of this tax depends on the engine power indicated in the vehicle passport, and is paid for each horsepower. But that's it for now. A bill has been submitted to the State Duma proposing to abolish the tax altogether, including the payment in the cost of fuel, which, according to preliminary calculations, will increase the cost of 1 liter of gasoline by 53 kopecks.

Save the streams!

Unofficially, fees, and essentially hidden taxes, from both individuals and legal entities are constantly growing one way or another. In 2017, companies will mainly have to deal with the consequences of these often ill-considered and harmful to the country’s economy implementations in their budgets. Companies will definitely be dissatisfied with the new scheme for calculating property taxes. Until now, it was calculated on the basis of inventory value, but now the basis of calculation will be the cadastral value - practically market value and not always adequate. You will have to pay in a new way from the spring of 2021 – for 2016. In connection with the introduction of a state monopoly on cadastral valuation of real estate, home owners are deprived of a number of rights in terms of revaluation of the established value, including the right to appeal the results of the valuation.

This reform could be devastating for small businesses. The load on businesses based on retail or production space will increase, which will affect prices and even the very ability to continue business. Small companies will generally be forced to fold, which means that cafes and shops will most likely close, and with them many streams of budget revenues will dry up.

Some agricultural enterprises are howling at the bills they have to pay. Land under radish or rye of hundreds of hectares is calculated based on market prices for garden plots nearby.

The problem will be aggravated by new types of cash registers (CCMs) - with the transfer of data to the Federal Tax Service via the Internet, which will become mandatory. From February 1, 2021, only new type cash registers will be registered. Yes, the chicken pecks every grain. But is it worth cutting off its head in order to feed itself for a day?

Every housewife knows: if she doesn’t have enough money, the surest way is to cut expenses. So experts agree that it is time for the state to reduce its expenses, and first of all the costs of maintaining the immensely bloated state apparatus. The Ministry of Finance of the Russian Federation also considered this path, proposing to reduce “unprotected” budget expenses by 6% in 2021 and by 9 and 11%, respectively, in 2021 and 2019.

Mikhail Subbotin, senior researcher at IMEMO RAS:

– It is impossible to raise taxes now. The Russian economy is in a state of deep recession, no matter how figuratively experts characterize it, at the bottom, pushed off from the bottom, or the bottom is somewhere ahead. To push off and swim out, there are two forces - investment and domestic demand. The situation with investments is known. These are sanctions and counter-sanctions, and investors began to be pushed out of the Russian economy long before the sanctions were introduced. Domestic demand remains. For its growth, a high solvency of the population is needed - this is what motivates active trade and, accordingly, production. Raising taxes stifles this second force. Despite the fact that they have already been indirectly increased by introducing all sorts of quasi-taxes, in particular “Plato”, fees for major repairs, and so on.

I think that next year we need to work on mutual adjustment of these two systems - tax and quasi-payments. And we are already seeing examples of some kind of regulation of payments parallel to taxes. The government is trying to somehow minimize the consequences by introducing all sorts of benefits.

It is unlikely that now, given the current state of the budget, the authorities can cut taxes, which would be useful and effective. It is generally difficult to find resources in the tax system. Theoretically, methods of regulation are possible using some special regimes through rationalization.

Specifically

A striking example of crazy spending is the Russian Pension Fund, which is the world champion in terms of the number of employees. The Pension Fund of Russia has a staff of 121,670 people.

The second place is occupied by the Social Security Administration in the United States, where it has 2 times fewer employees - about 60 thousand. Despite the fact that the population of the United States is more than twice that of Russia, and the volume of pension and social benefits is almost 9 times higher.

The fund's Russian staff exceeds the Swedish one by 122 times, despite the fact that this service is considered the most effective in the world. The famous Swedish economist Anders Åslund calculated: if we extrapolate the experience of his country to Russia, then the normal staff of a pension fund should not exceed 14 thousand people.

Japan is similar in population to Russia. And there, the pension service Nihon Nenkin Kikou costs 27 thousand people, and there are only 15 thousand full-time employees.

In addition, to equip workspaces for Russia's overstaffed workforce, millions of square meters of office space are required.

Support for individual entrepreneurs using simplified and patent taxation systems

At the proposal of the head of Russia Vladimir Putin, the revenue limit for applying the simplified taxation system (STS) will be increased from today’s 120 million rubles to 150 million rubles per year. This will allow more entrepreneurs and organizations to take advantage of the simplified tax system.

Another significant and long-awaited amendment to the Tax Code concerns individual entrepreneurs using the patent tax system. Starting from 2017, the taxpayer will not be deprived of the right to apply the PSN in the current period in case of late payment of the cost of the patent. Representatives of small businesses will have the opportunity to pay the overdue payment and continue to use the patent.

Starting next year, individual entrepreneurs who simultaneously use the PSN and the Unified Agricultural Tax or the simplified tax system will not be deprived of the opportunity to enjoy preferential tax regimes if they lose the right to use a patent. Let us remind you that, according to the current legislation, the loss of the right to the PSN automatically transfers the entrepreneur to the general taxation system for patent activities, even if he applies the simplified tax system or unified tax system for all other operations.

Other changes

There is some good news. Most individual entrepreneurs use the simplified taxation system (STS). From this year, the general system for small businesses is no longer unprofitable - if the income of an individual entrepreneur is less than 2 million rubles per quarter, he is exempt from paying VAT. According to tax law specialist Yankevich, the most profitable system is still the simplified tax system - all taxes in one payment. “This is more profitable both from an economic point of view and the bureaucratic burden on small businesses. Plus, with the VAT exemption there is a little more paperwork,” the expert concluded.

In 2021, it was possible to work on a “simplified” basis if the company’s annual income does not exceed 79 million 740 thousand rubles. The limit was increased to 150 million. In addition, the law now allows entrepreneurs to reduce tax under the simplified tax system and UTII on above-limit insurance premiums (which businesses pay on income above 300,000 rubles).

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Payment of taxes and fees will be possible by third parties

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Starting next year, taxes will be allowed to be paid not only by the taxpayers themselves or their legal representatives, but also by third parties.
The draft law has amended the Tax Code, according to which such payment is permitted, and the payer for whom the tax was paid does not receive taxable income. Since 2017, according to the document, it has been possible to return or offset taxes paid by third parties. The new version of Article 346.17 of the Tax Code of the Russian Federation talks about the right of taxpayers using the simplified tax system to take into account debts for taxes, fees and insurance premiums, as well as the costs of repaying them as expenses in those reporting (tax) periods when they were actually repaid.

The amendments also affected the administration of mandatory insurance contributions. From January 1 next year, the Federal Tax Service will have the right to require from taxpayers, as part of a desk audit, information and documents that indicate their right to apply preferential rates of insurance contributions or exempt them from taxation of payments to employees.

In addition, separate divisions of organizations that have the authority to accrue payments and other remuneration in favor of individuals from January 1, 2021 will be required to register with the territorial bodies of the Federal Tax Service at their location. The amendments were made in accordance with the provision of the new chapter of the Tax Code “Insurance Contributions”, which obliges payment of insurance premiums at the location of the separate unit that makes payroll. This means that next year the obligation to pay contributions and report will arise only for those separate divisions whose parent organizations notify the tax authorities about granting them the authority to accrue payments to employees.

Personal income tax

The changes mostly affected the design of reporting and coding.

Tax agents

All this applies to persons who are recognized as tax agents. In addition to those who already had a similar status in the old year, namely: organizations, individual entrepreneurs, notaries, law offices, divisions of foreign companies on the territory of the Russian Federation (Article 207 of the Tax Code of the Russian Federation), a number of new provisions were added. Now organizations that transfer salaries to military personnel and civilian personnel are also recognized as tax agents (Bill No. 1078298-6).

The number of payments subject to personal income tax has also changed. There are fewer of them. Now employee certification is not included in income that is subject to personal income tax.

Changing the payment order

In 2021, it became possible to pay personal income tax in advance, taking into account overpayments on previous payments.

Changes in personal income tax also affected the procedure for paying vacation pay. Now you can pay taxes at the end of the month, for all employees at once. The advantage of such a solution is that companies with a large staff of employees will be able to pay the tax once for all people affected by the payment of vacation pay.

If you are not a large company, then you have the right to make payments in the same way as before. Upon payment of vacation pay (clause 6 of Article 226 of the Tax Code of the Russian Federation).

New codes for 2-NDFL certificates

New codes for personal income tax certificates have appeared. First of all, it is worth mentioning the codes for bonuses, 2002 and 2003. Code 2002 is calculated for bonuses that are associated with production costs and are included in wages. 2003 was created for bonuses paid from net profit.

Deductions for children

New codes have also appeared for deductions, there are 8 in total:

• For the first child under 18 years of age.*
• For a second child under 18 years of age.*
• For the third and each subsequent child under 18 years of age.*
• For a disabled child under 18 years of age.**
• For the first child under 18 years of age.*
• For a second child under 18 years of age.*
• For the third and each subsequent child under 18 years of age.*
• For a disabled child under 18 years of age.**

* - and for each full-time student, or graduate student, student, cadet, under 24 years of age.

** - and for each full-time student, or graduate student, student, cadet, under 24 years of age, if he is a disabled person of group I or II.

The amount of the deduction for children has also undergone changes. Now it is 1,400 rubles for the first and second child. 3000 – for each subsequent one. 12,000 – for each child under 18 years of age who is disabled. Applies to a parent or guardian.

The employee loses the right to deduction in the following cases:

• If the income for the calendar year exceeded 350,000 rubles. Payments stop from the month when income reaches this mark.
• If the child died. The deduction ends in January of the following year.
• When the child is over 18 years old, or is no longer a full-time student.
• If the child is over 24 years old or has completed his studies.

Deductions can only be used by residents of the Russian Federation who live in Russia for at least 183 days a year. It is also worth noting the fact that only those incomes of citizens that are subject to personal income tax at 13% are subject to deductions (Article 218 of the Tax Code of the Russian Federation).

From January 2021, employees have the right to apply to their employer for social deductions. A deduction can be issued if an employee spent money on training or treatment in the accounting year. Previously, such deductions had to be filed with the Federal Tax Service according to the results of the past year, but now it is no longer necessary to wait until the end of the year and contact a special body.

Regarding payments, the deadlines for paying personal income tax have changed. Articles 223 and 226 of the Tax Code of the Russian Federation have undergone changes. The main change is that personal income tax has become necessary to calculate on the day when the money was actually received by employees.

New form 2-NDFL

Form 2-NDFL has also undergone changes (order of the Federal Tax Service of Russia dated October 30, 2015 No. ММВ-7-11/485). For each incorrectly completed certificate in Form 2-NDFL, a fine of 500 rubles will be imposed.

New form 2-NDFL from 2021.

What will the deflator coefficients be?

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State Duma deputies did not consider it necessary to increase the increasing coefficient for UTII for 3 years.
Although the Ministry of Finance insisted that the changes would allow entrepreneurs to plan their tax burden, parliament came to the conclusion that it was necessary to maintain K1 at the 2015 level. According to the approved order of the Ministry of Economic Development, its size will be 1.798. Other coefficients will increase by the amount of inflation. All these deflator coefficients are taken into account when calculating certain taxes and fees in relation to legal entities, individual entrepreneurs and individuals. Thus, without a deflator coefficient it is impossible to calculate tax under the simplified taxation system, UTII. Also, without it, it will not be possible to find out the exact cost of the patent, the amount of the trade fee and the property tax of individuals. Let us recall that these coefficients are used to calculate fixed advance personal income tax payments paid by foreign citizens who are employed on the basis of a patent, in accordance with the requirement of Article 227.1 of the Tax Code of the Russian Federation.

Property tax

Law No. 401-FZ introduces a new article. 381.1 of the Tax Code of the Russian Federation, which transfers property tax benefits in relation to movable property accepted for registration as fixed assets from 01/01/2013 to the jurisdiction of the subjects. Such property is exempt from taxation, with the exception of movable property registered as a result of:

• reorganization or liquidation of legal entities;
• transfer, including acquisition, of property between persons recognized as interdependent according to the rules of paragraph 2 of Art. 105.1 of the Tax Code of the Russian Federation (clause 25 of Article 381 of the Tax Code of the Russian Federation).

Starting from 01/01/2018, tax benefits specified in clause 24 (in terms of property located in the Russian part of the Caspian Sea bed) and clause 25 of Art. 381 of the Tax Code of the Russian Federation, are applied on the territory of a constituent entity of the Russian Federation if the corresponding law of the constituent entity of the Russian Federation is adopted. This means that now regional authorities will determine whether to introduce such a benefit or not. Given the current economic situation and budget deficit, it is unlikely that such a benefit will be introduced in many regions.

What tax benefits will be provided to Russians?

Benefits for movable property that appeared on the organization’s register as fixed assets from January 1, 2013 will be determined by regional authorities, but they will receive such a right only from January 1, 2021. Taxpayers may be left without a benefit if it is not accepted by the entity at the regional level. Based on the fact that there is a shortage of funds in regional budgets, business representatives are likely to be deprived of property tax benefits for legal entities.

The bill also establishes VAT preferences. The zero rate for services for the transportation of passengers and luggage by public railway transport in long-distance traffic will be valid until January 1, 2030. Until the same date, parliamentarians extended the zero VAT rate on services for transporting passengers in electric trains. In addition, the zero VAT rate will remain until 2019 for air transportation to Crimea. The State Duma has allowed not to take into account personal income tax on income in the form of prize money for Paralympic athletes, as well as benefits for combat veterans.

VAT

The amendments introduced by Law No. 401-FZ affected a number of rules governing the procedure for calculating VAT.

Zero VAT rate

From 01/01/2017 to 31/12/2029, services for the transportation of passengers and luggage by public railway transport in long-distance traffic will be levied at a zero rate of VAT. Also, until 01/01/2030, the benefit in terms of services for transporting passengers by rail in suburban traffic is extended (Article 7 of Law No. 401-FZ).

To confirm the validity of the right to apply a zero rate and tax deductions, the company must submit to the tax authority a register of unified transportation documents for the transportation of passengers and baggage, defining the transportation route, indicating the numbers of transportation documents, points of departure and destination, the date of provision of services, the cost of services for the transportation of passengers and luggage (clause 5.3 of Article 165 of the Tax Code of the Russian Federation as amended by Law No. 401-FZ).

VAT restoration for subsidy recipients

Currently, in the case of receiving subsidies from the federal budget for reimbursement of costs associated with payment for purchased goods (work, services), as well as for reimbursement of costs of paying tax when importing goods into the territory of the Russian Federation and other territories under its jurisdiction, the amount of VAT subject to restoration in the amount previously accepted for deduction (clause 6, clause 3, article 170 of the Tax Code of the Russian Federation). If the subsidy was actually received from the regional budget, then the company has no obligation to restore VAT previously accepted for deduction.

According to the innovations, from July 1, 2017, recipients of regional and local subsidies are required to restore VAT (if the amount of the subsidy received includes VAT). Restoration of tax amounts is carried out in the tax period in which the amounts of the provided subsidies were received (clause 6, clause 3, article 170 of the Tax Code of the Russian Federation, as amended by Law No. 401-FZ).

Self-employed citizens will be exempt from personal income tax

The Tax Code will be supplemented with norms according to which self-employed citizens who provide services to others in raising children, housekeeping, and caring for the elderly will be exempt from personal income tax for two years. To exercise this right, a citizen will need to register with the territorial body of the Federal Tax Service and indicate the type of business by the end of 2021. After this, they will be given the status of individual entrepreneurs, allowing them to pay personal income tax in the amount of 13% or stop their activities altogether. Regional authorities will determine the types of activities of self-employed citizens.

For the amendments to come into force, the bill must be approved by the Federation Council and signed by the head of Russia.