What insurance premiums will be charged to foreigners in 2021?

Almost everyone has at least once applied to a clinic to obtain a sick leave certificate, then to take the treasured form to the accounting department and receive payment. And absolutely everyone who works will be forced to retire and receive state benefits upon reaching a certain age. You can count on these payments only when regular deductions - insurance premiums - are made to the relevant organizations. Let's take a look at how this system works, including how insurance premiums are collected from foreigners in 2021.

Labor activity of foreigners in Russia

Perhaps the problem of finding a job exists everywhere. There is hardly a state that can boast of a complete absence of unemployment. In addition, we should not forget about migration, which in one way or another affects the internal affairs of the country, including in the field of labor relations. It should be noted that migrants have a very unenviable position: native residents do not always engage in the activities they dreamed of, and foreign guests even more so. True, there are those who come abroad at the invitation of their employer, but this is more a happy exception than the rule. Most often, foreigners are much more concerned about finding work than the local population. From the point of view of common sense, it is much easier for an employer to hire a compatriot than a citizen of another country.

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Payments subject to insurance premiums

The main regulatory act that regulates the procedure for settlements with the state is the Tax Code of the Russian Federation. They establish the amounts of state duties, various fees and penalties, the algorithm for calculating them and the deadlines for payment. Most of this document, of course, is devoted to taxes (that’s what the Tax Code is for) and everything connected with them. In particular, special attention is paid to the taxation of foreign citizens.

We will return, as they say, to our sheep and talk about insurance premiums. Russian legislation has a fairly extensive list of documents relating to this issue. And first of all, let's turn to the already familiar Tax Code of the Russian Federation.

Chapter 34 of the Tax Code of the Russian Federation is entirely devoted to the general rules for calculating and paying insurance premiums; in addition, Article 426 fixes tariff rates, according to which contributions from the salaries of foreigners are calculated in 2021.

On what income are insurance premiums calculated? Is it just for salary? But what about bonuses, other rewards and payments? The answer will depend on who the employer is.

Article 419 of the Tax Code of the Russian Federation proposes the following classification:

1. Those who make payments to individuals:
   individual entrepreneurs (hereinafter referred to as individual entrepreneurs);
2. organizations;
3. other individuals who are not registered as individual entrepreneurs.
4. Those who do not make payments to individuals. This group includes persons who are engaged in private practice (lawyers, patent attorneys, notaries, appraisers, mediators, arbitration managers, and so on).

Article 420 of the same Tax Code of the Russian Federation establishes the types of income for which insurance premiums are calculated. True, she does this in a manner characteristic of legislation - with numerous references to other articles, their paragraphs, subparagraphs and parts. We will try to translate legal Swahili into the usual Russian language and for convenience we will present the information in a table.

Regulatory regulation of insurance premium payments

Tax Code of the Russian Federation Part 2 Chapter 34. Insurance premiums determines the obligation of employers to make insurance payments

Federal Law No. 167-FZ dated December 15, 2001 regulates the basics of OPS

Federal Law No. 27-FZ dated April 1, 1996 determines the obligation of personalized accounting in the OPS system

Federal Law No. 125-FZ of July 24, 1998 regulates the compulsory social insurance of employees

Order of the Federal Tax Service of Russia dated October 10, 2016 N ММВ-7-11/ [email protected] defines the reporting forms for contributions to compulsory pension insurance, its completion and submission

Payments not subject to insurance premiums

This category includes:

1. Payments and rewards under civil contracts related to the transfer of rights to property or the transfer of property for use. Exceptions: agreements related to intellectual activity and its results, author's order agreements, publishing license agreements.
2. Payments and rewards under civil contracts for the performance of work / provision of services concluded with a foreign individual, if the performance of work / provision of services will be carried out outside the Russian Federation.
3. Reimbursement amounts for charitable organization volunteers. Exception: food expenses exceeding the daily allowance.
4. State benefits.
5. Compensation payments related to:
   with free provision of housing, payment for housing and utilities, food, fuel;
6. with compensation for damage caused by damage to health;
7. with payment of the cost / issuance of allowance in kind / payment of funds in exchange for this allowance;
8. with the dismissal of an employee. Exceptions: severance pay and average monthly salaries for the period of employment in terms of exceeding the established amounts (for employees of organizations located in the Far North - six times the average monthly salary, for all others - three times);
9. compensation to the manager, his deputies and the chief accountant in terms of exceeding three times the average monthly salary;
10. with the activities of athletes, employees of physical culture and sports organizations, sports judges (payment for equipment, food, uniforms);
11. with expenses of an individual that were incurred in connection with the fulfillment of obligations under civil contracts;
12. with reimbursement of expenses for advanced training, professional training or retraining;
13. with the employment of workers dismissed due to certain circumstances (downsizing, liquidation/reorganization of an enterprise, termination of activities as an individual entrepreneur, termination of activities subject to registration or licensing);
14. with the performance of work duties, including in connection with moving to another area.

1. Amounts of one-time financial assistance paid to the employee:
   at the birth/adoption of a child/establishment of guardianship over a child. The amount of financial assistance cannot exceed 50,000 rubles per child and is paid within the first year from the date of occurrence of these events;
2. in case of death of a family member;
3. if he or his property was damaged as a result of a natural disaster/other emergency/terrorist attack.
4. Payment amounts:
   under voluntary health insurance contracts, the validity of which is at least one year;
5. on compulsory insurance of employees;
6. under contracts for the provision of medical services to employees, which the employer concludes with medical institutions that have the appropriate license. The duration of these agreements must be at least one year;
7. under personal insurance contracts concluded exclusively in the event of death or injury to the health of the insured;
8. under non-state pension insurance contracts.
9. Income of members of family (tribal) communities of indigenous peoples of Siberia, the North and the Far East, received from fishing (except for wages of workers).
10. The cost of tickets (to and from the holiday destination), as well as baggage allowance weighing up to 30 kilograms. This type of payment is provided only for those who work and live in the Far North and equivalent territories.
11. The cost of uniforms and uniforms.
12. Amounts of financial assistance, if they do not exceed 4,000 rubles per employee for the reporting period.
13. Travel benefits.
14. Payments received by individuals/election commissions/referendum commissions.
15. Payment for employee training for both basic and additional educational programs.
16. Payments made to reimburse mortgage interest paid by an employee.
17. Payments and remuneration under labor and civil contracts to foreigners and stateless persons temporarily staying in Russia. This paragraph does not apply if these persons are recognized as insured in accordance with the law.
18. Amounts of clothing and food supplies, monetary allowances and other payments provided for military personnel, employees of the internal affairs bodies of the Russian Federation, the fire service, management of the federal courier communications, employees of the criminal correctional system, and customs authorities.
19. Travel expenses:
    daily allowance;
20. airport taxes;
21. travel expenses;
22. commission fees;
23. baggage transportation;
24. rental of residential premises;
25. currency exchange;
26. visa application;
27. connection;
28. fare.

Types of insurance premiums

Everyone knows that working citizens pay income tax (hereinafter referred to as personal income tax), which is deducted from wages. At interviews, personnel officers very confidently juggle the concepts of “no” and “gross” when discussing issues of remuneration. Don’t be afraid of these terms; they came into circulation thanks to the fashion for anglicisms and beautiful foreign words.

In simple Russian language, wages have two states: before deduction of personal income tax (this is precisely the notorious “gross salary”) and after deduction of personal income tax (aka “no”), that is, “in hand.”

The amount of the latter can be calculated independently: to do this, you need to subtract the tax from the amount specified in the contract. In most cases, the personal income tax rate is 13%, but other options are possible - 9, 30 and even 35%. Taxes from foreigners are also transferred to the budget of the Russian Federation.

Accountants and financiers are very familiar with the phrase “payments to the budget and extra-budgetary funds.” However, even ordinary people have heard it at least once. But let's be clear. Payments to the budget include the aforementioned personal income tax and other taxes, of which there are a great many in our legislation. What are these mysterious “extra-budgetary funds” and what do they have to do with working citizens in general and foreigners in particular?

It's simple: these funds pay pensions and provide medical services. And here it’s time to remember that the premiums we are considering are called insurance premiums. This means that these funds simply must be directly related to insurance.

First, let's explain how this system works. As a rule, it involves two parties: the insurer and the policyholder. The insurer is the one who insures and compensates for losses upon the occurrence of a specified event. The policyholder is, accordingly, the one who is insured.

Naturally, insurers are by no means charities. The insurance company will assume the risks and pay compensation only if the client pays for these services. This is the general interaction algorithm. We will not delve into the intricacies of the insurance business, because this is not what the article is about, but some nuances are worth mentioning.

When it comes to insurance premiums from employees, the standard “insurer-policyholder” tandem is supplemented by a third party – the insured.

And then the interaction scheme takes the following form:

1. Insurer. The previously mentioned funds, of which there are three in our country, act as insurers:
   Pension Fund;
2. Compulsory Health Insurance Fund;
3. Social Insurance Fund.

The budget of these organizations is formed from insurance contributions, which are transferred by employers for each employee. The collected funds are used to pay pensions, social benefits, medical services and sick leave.

1. Policyholder. Employers act as insurers. Their task is to calculate and transfer insurance premiums for their employees on time. Important! Insurance premiums are calculated on the basis of the employee's salary, but in no case are deducted from it. The amount of contribution to each fund is determined in the same way: the employee’s salary is multiplied by the tariff. But payment of calculated insurance premiums is made from the employer’s own funds.
2. Insured. These, as you might guess, are employees who, upon the occurrence of certain events, will receive appropriate payments (pensions, benefits, and so on).

This theory is probably enough, so let's move on to more specific categories and look at insurance premium rates in 2021 for foreigners.

Russian Pension Fund

This organization is an insurer of compulsory pension insurance and makes payments in the following cases:

• onset of disability;
• reaching retirement age;
• loss of a breadwinner.

Types of payments made from Pension Fund funds:

• old age/disability/survivor pensions;
• funded pension;
• payment towards the insurance pension (fixed);
• immediate pension payment;
• lump sum payment of pension savings;
• payment of pension savings to legal successors (if the insured person died);
• funeral benefits for pensioners who were not insured under the social insurance program.

Article 426 of the Tax Code of the Russian Federation establishes that insurance contributions to the Pension Fund of the Russian Federation depend on the so-called maximum value of the base for calculation. We will talk about what this is further, but here we will clarify the size of this indicator - 1,021,000 rubles. The insurance rate for compulsory pension insurance directly depends on this amount and is:

• if the employee’s total income is less than 1,021,000 rubles – 22%;
• if the employee’s total income is more than 1,021,000 rubles – 10%.

Social Insurance Fund

Let's look at why contributions are made to the Social Insurance Fund and what payments they go towards.

The Social Insurance Fund makes payments in the following situations:

• pregnancy and childbirth;
• temporary disability due to illness or injury;
• death of the insured person / member of his family;
• birth of a child/children;
• child care (up to 1.5 years).

Types of payments made:

• child care allowance (monthly);
• child birth benefit (one-time);
• a one-time benefit for women registered with a doctor in the early stages of pregnancy;
• temporary disability benefits (also known as sick pay);
• maternity benefits;
• funeral benefit.

The above-mentioned Article 426 of the Tax Code of the Russian Federation establishes the tariffs for social insurance contributions. Just as in the previous case, they depend on the maximum base value equal to 815,000 rubles.

The insurance premium rate will be:

• if the employee’s total income is less than 815,000 rubles – 2.9%;
• if the employee is a foreigner temporarily staying in the Russian Federation (with the exception of highly qualified specialists) and his total income is less than 815,000 rubles - 1.8%;

As soon as the amount of total income reaches the limit, the transfer of insurance premiums for this type of insurance stops and resumes only in the next calendar year.

Health Insurance Fund

The Federal Compulsory Medical Insurance Fund (hereinafter referred to as FFOMS) performs the functions of an insurer, that is, it first collects funds and then spends them on paying for medical services to the population. Popularly this phenomenon is called free medicine. Unlike payments for pension and social insurance, contributions to the Federal Compulsory Medical Insurance Fund do not depend on the maximum value and are paid at a single rate - 5.1%.

Insurance premiums for temporary residents

For foreign citizens who permanently reside in the Russian Federation, the same insurance premiums are provided as for Russians. Accordingly, they are paid for:

• contributions to the Pension Fund tariff 22%.
• for health insurance in the amount of 5.1%.
• social insurance 2.9%.
• from accidents 0.6% or 0.2%.

According to Russian legislation, foreigners who temporarily stay in the territory of our country are subject to the following types of insurance:

• Mandatory pension, regardless of what contract they work under, including individual entrepreneurs.
• OSS for disability and maternity when employed under an employment contract or of a civil law nature, but not for individual entrepreneurs.
• Compulsory medical insurance, regardless of the type of contract, including entrepreneurs, but not highly qualified foreigners.
• OSS on injuries when performing work under an employment or civil employment contract.

Thus, from the income of foreigners registered under an employment or civil process agreement, the employer is obliged to transfer all types of contributions provided for by law, as well as for the income of citizens of the Russian Federation. In 2017, insurance premiums for foreign citizens will be:

• for pension insurance - 22% on income that does not exceed 876,000 rubles, and 10% on income above this norm;
• for social benefits - for disability and maternity - 2.9% from income not exceeding 755,000 rubles, contributions are not charged in excess of this norm;
• for compulsory medical insurance - 5.1% of the entire amount of income.

In this case, the payer of contributions may also experience:

• the obligation to apply additional tariffs due to the special working conditions of a foreign employee;
• possibility of using reduced tariffs in accordance with the law

Tariffs for them will generally be equal to:

• on OPS - 22% on income not exceeding 876,000 rubles, and 10% on income above this amount;
• for OSS for disability and maternity - 1.8% from income not exceeding 755,000 rubles; contributions will not be accrued above this income.

At the same time, situations may arise for the contribution payer when he has:

• the obligation to apply additional tariffs due to the special working conditions of a foreign employee;
• possibility of using reduced tariffs;
• Contribution rates for injuries will depend on the type of activity carried out by the employer.

According to Art. 207 of the Tax Code of the Russian Federation, personal income tax payers are both residents and individuals who are not residents. Thus, all the rights and obligations provided for by the Tax Code of the Russian Federation for taxpayers are also valid for non-residents, taking into account the features provided for in Chapter. 23 of the Tax Code of the Russian Federation and interstate agreements of the Russian Federation.

So, in accordance with paragraph 3 of Art. 210 of the Tax Code of the Russian Federation, the absence of tax resident status, and therefore the application of a personal income tax rate of 30% to a resident’s income, does not allow him to take advantage of the tax deductions specified in Art. 218–221.

In this case, taxation must be carried out taking into account the intergovernmental agreement on the elimination of double taxation in force between Russia and the state in which the person is considered a resident. A list of such agreements is published on the Federal Tax Service website.

In order for tax paid in a foreign country to be offset in the Russian Federation, the taxpayer must have (clause 3 of Article 232 of the Tax Code of the Russian Federation):

• documents confirming the amount of accrued income and the tax paid on it abroad (originals or their certified copies);
• notarized translation of these documents.

The deadline for submitting documents for such an offset is limited to 3 years after the end of the tax period in which the corresponding income was received (clause 2 of Article 232 of the Tax Code of the Russian Federation).

If an international treaty provides for complete or partial exemption of income from taxation, then in order to obtain such exemption, a foreigner only needs to present to the tax agent a passport issued by a foreign state or another similar document (clause 6 of Article 232 of the Tax Code of the Russian Federation). If it is impossible to present any of the specified documents, they can be replaced by an official confirmation of the status of a foreigner issued by an authorized body of a foreign state. If it is necessary to translate the text into Russian, its notarized translation is submitted simultaneously with such confirmation.

The tax withheld from a foreigner until he submits documents for tax exemption is subject to return to him by the tax agent based on the application. The refund must be made in non-cash form within 3 months from the date of receipt of the application (clause 7 of article 232, clause 1 of article 231 of the Tax Code of the Russian Federation), i.e. according to the same rules that apply to residents.

For more information about the current personal income tax refund procedure in the Russian Federation, read the article “Procedure for the return of income tax (NDFL): nuances.”

Legal statuses of foreigners in Russia

No matter how strange it may sound, there is a difference between foreigner and foreigner. No, it's not about the accent, skin color or country where the guest comes from. It is in this sense that all foreign guests are equal. The length of stay in the Russian Federation and the need to obtain permits are the main parameters that determine the status of migrants.

Foreigners permanently residing in the Russian Federation

We can say about them that these are our compatriots in five minutes. In other words, this category includes foreigners who have decided to move to Russia for permanent residence. Most people are probably familiar with this abbreviation, but not everyone knows how it stands and what its meaning is.

A foreigner will be called a permanent resident of the Russian Federation only after he receives a residence permit (hereinafter referred to as a residence permit). Those who are the happy owners of not only this document, but also a job, pay taxes and insurance premiums in the same way as Russians do. In particular, foreigners permanently residing in the Russian Federation are subject to pension, social, and medical insurance, which means that contributions are made to all three funds.

This status is the last step before obtaining citizenship, but it is far from the only one. The path to obtaining a Russian passport is long and thorny. Before receiving a residence permit, a foreign guest is called a “temporarily resident on the territory of the Russian Federation,” and even then only if he has issued a temporary residence permit (hereinafter referred to as TRP). Let's take a closer look at whether the taxes and contributions of a foreigner with a temporary residence permit differ in any way from those provided for holders of a temporary residence permit.

Foreigners temporarily residing in the Russian Federation

Temporary residents mean citizens who are in Russia on the basis of a temporary residence permit. This document is issued for three years and cannot be renewed at the end of the specified period. The owner of an expired temporary residence permit has only two options: obtain the status of a permanent resident in the Russian Federation or return home. In most cases, the choice is made in favor of the first option, that is, there is a need to obtain a residence permit.

Foreigners living in Russia on the basis of a temporary residence permit can carry out work activities. And although the labor legislation has some features regarding migrants, in general the procedure is the same: a contract is concluded, the employee’s work is paid, taxes are withheld, and insurance premiums must be regularly deposited into the fund’s accounts. By the way, insurance premiums for temporarily residing foreigners are absolutely identical to those paid for migrants permanently residing in the Russian Federation. They are calculated in a similar manner and transferred to all funds.

Foreigners temporarily staying in the Russian Federation

This category includes foreign guests whose stay in Russia will not last more than 90 days within six months. It is during this time that a citizen of another country can legally stay in the Russian Federation with only a migration card in his pocket (it is filled out when crossing the border). In addition, the law gives 7 working days to register.

If a person stays in the Russian Federation longer than the permitted period, there is a risk of additional hassle: even one “extra” day requires the issuance of permits. And in this case, the RVP, which was mentioned above, acts as such, so we will not repeat it. Taking into account the main topic of the article, insurance premiums for temporarily staying foreigners in 2018 are of much greater interest.

There is a significant nuance here. Working foreigners temporarily staying in the Russian Federation are also subject to insurance contributions, but in this case, funds are transferred only to two funds: the Pension Fund and the Social Insurance Fund.

Highly qualified foreign specialists

Perhaps the name speaks for itself. Representatives of this category are citizens who have a very high level of knowledge and skills, as well as relevant work experience. The legislation provides for a lot of conditions for hiring such specialists, including requirements for qualifications and salary levels.

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Highly qualified specialists are very specific when it comes to paying insurance premiums. They are not insured and are not subject to insurance premiums.

Special cases

We will include only a few points in special cases:

• labor or civil contracts for the performance of work/provision of services concluded between foreign citizens and FIFA;
• civil agreements on participation in events concluded between volunteers and FIFA / its subsidiaries / Organizing Committee "Russia 2018";
• employment contracts concluded between a foreign individual and a Russian organization to work in its separate division located outside the Russian Federation.

Payments and rewards provided for in these agreements are not subject to any insurance premiums.

Personal income tax on non-resident income received under a rental agreement

The employer is a tax agent in terms of personal income tax when paying remuneration to HQS (clause 1 of Article 226 of the Tax Code of the Russian Federation).

The status of a HQS must be confirmed by a work permit issued to the HQS by the Federal Migration Service (Letter of the Federal Tax Service of the Russian Federation dated April 26, 2011 No. KE-4-3/6735).

At what tax rate should income paid to HQS be taxed?

With regard to the income of HQS for performing labor duties in the Russian Federation, a tax rate of 13% is applied (Letters of the Ministry of Finance of the Russian Federation dated May 23, 2016 No. 03-04-06/29406, dated April 1, 2016 No. 03-04-06/18552, dated 08.12.2015 No. 03-04-06/71450, Federal Tax Service of the Russian Federation dated 26.04.2011 No. KE-4-3/6735).

However, for other payments in cash or in kind (material assistance, gifts, reimbursement of housing costs, etc.), a personal income tax rate of 30% is applied if the HQS are not tax residents of the Russian Federation. Allowances for work outside the place of permanent residence and remuneration to members of the board of directors are also taxed at the personal income tax rate of 30% (Letters of the Ministry of Finance of the Russian Federation dated 04/11/2012 No. 03-04-06/6-107, dated 06/21/2013 No. 03- 04-06/23539).

Do HQS have the right to receive deductions? Despite the fact that personal income tax is levied on the salary of HQS from the first day of work at a rate of 13%, this does not mean that such employees receive the status of a resident of the Russian Federation. Thus, it is possible to reduce the amount of personal income tax for tax deductions provided for in Articles 218-220 of the Tax Code of the Russian Federation (standard, social and property deductions) after the HQS becomes a tax resident of the Russian Federation.

Tax agents are required to transfer personal income tax to the budget no later than the day following the day of payment of the income tax (Clause 6 of Article 226 of the Tax Code of the Russian Federation). An annual report in form 2-NDFL and a quarterly report in form 6-NDFL are submitted to the tax office at the place of registration of the taxpayer.

Insurance premiums

Highly qualified foreign workers temporarily staying in the Russian Federation and working under employment contracts in the Russian Federation are not subject to compulsory pension insurance, that is, payment of remuneration to them is not subject to contributions to the Pension Fund of the Russian Federation (Clause 1, Article 7 of Law No. 167-FZ, Clause 1 of Art. .2 of Law No. 255-FZ, Letter of the Ministry of Labor of the Russian Federation dated November 18, 2015 No. 17-3/B-560).

HQS are not subject to compulsory health insurance in the Russian Federation. Therefore, amounts of payments under an employment contract in favor of such an employee are not subject to insurance contributions to the Compulsory Medical Insurance Fund (Article 10 of the Federal Law of November 29, 2010 No. 326-FZ).

HQS are subject to compulsory social insurance in case of temporary disability and in connection with maternity only if they have the status of permanent or temporary residents of the Russian Federation. Persons with the status of temporary residents are not subject to such insurance (Article 2 of the Federal Law of December 29, 2006 No. 255-FZ).

The object of taxation of insurance premiums is payments and other remuneration paid by policyholders in favor of the insured within the framework of labor relations.

Thus, HQS is subject to injury insurance on a general basis. Consequently, insurance premiums “for injuries” are charged on the remuneration paid to him within the framework of the employment relationship (Article 20.1 of the Federal Law of July 24, 1998 No. 125-FZ).

In RSV-1, HQS payments are reflected in section 2 of the form, that is, as part of the general calculation base. There are no special features in filling out the FSS-4 form in terms of HQS. “Insurance” reporting is submitted in accordance with the generally established procedure.

The article is current as of 08/02/2016

In accordance with paragraph 2 of Art. 223 of the Tax Code of the Russian Federation, remuneration for the performance of labor functions is considered received by the employee, including non-residents, on the last day of the reporting month, and upon termination of the employment contract - on the last working day. As of this date, the tax agent calculates the number of days the non-resident is in Russia (letter from the Ministry of Finance of Russia dated April 20.

Upon confirmation of a period of stay in the country of at least 183 calendar days, the employee is considered a resident. Personal income tax is calculated on an accrual basis from the beginning of the year (tax period) at a rate of 13%, taking into account the tax withheld in previous months at a rate of 30% (clause 3 of Article 226 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated February 10, 2012 No. 03-04-06/ 6-30).

For an example of personal income tax recalculation with a change of status, see here.

At the end of the tax period, the recalculation and return of personal income tax is carried out by the Federal Tax Service after submitting the 3-personal income tax declaration and documents confirming the status of a tax resident (clause 1.1 of article 231, article 78 of the Tax Code of the Russian Federation) to the tax office at the place of registration of the payer.

The article “Tax Declaration 3-NDFL: Features in 2017-2018” will help you get an idea of ​​the 3-NDFL declaration.

See also “Personal income tax from non-residents of the Russian Federation in 2017-2018”.

Employment under a patent

A patent is a document giving a foreign citizen the right to carry out labor activities. It is received by migrants who arrived in Russia from countries with which there is a visa-free regime. Strictly speaking, the position of the legislation is transparent: without a patent, concluding an employment contract is impossible.

In cases established by law, a work permit is issued instead of a patent, and sometimes neither one nor the other is required at all. However, the imposition of insurance premiums does not depend in any way on the basis on which the foreign citizen was hired. Two factors that have an impact on payments to the funds are the existence and type of contract (labor or civil law) between the employer and employee. In other words, insurance contributions to funds for foreigners working under a patent in 2021 are transferred in the standard manner described above.

Health Insurance Fund

Insurance payments to the Compulsory Medical Insurance Fund from foreigners in 2021 are not accrued on the wages of those workers who are on Russian territory in the status of temporary residents, and on payments to specialists of the highest categories.

This, however, does not apply to those who live in the Russian Federation permanently or temporarily: they are subject to a tariff of 5.1%, which in principle is exactly the same as for Russian citizens.

According to the new regulations, the amount of remuneration for which payments are currently accrued to the Medical Insurance Fund is not limited.

For convenience, we have listed all payment rates in the table:

A separate group consists of persons who have received refugee status in the Russian Federation. The amount of contributions in this case directly depends on migration legislation. Since, having received a refugee certificate, such migrants are equal in all their rights to Russian residents, it turns out that payments are accrued to them in the usual manner.

The situation is different with those who have not yet acquired such a status. Since they cannot yet be called Russian citizens, the amount of contributions for them is calculated according to the scheme for temporarily staying persons. Thus, the interest rate will depend entirely on the stage at which the application is being considered.

Calculation of insurance premiums under civil contracts

There are two types of contracts with the employer: labor and civil law, also known as a civil law agreement (hereinafter referred to as the civil law agreement). There is a significant difference between them.

The first is strictly in accordance with the Labor Code of the Russian Federation (hereinafter referred to as the Labor Code of the Russian Federation) and provides for all social benefits and guarantees. This means that all employee rights are protected by law; hiring, dismissal, transfer, leave and similar personnel issues are resolved as required by the Labor Code of the Russian Federation.

A GPC agreement, as a rule, is concluded in cases where we are talking about the performance of work or the provision of services, the list of which is fixed in the agreement. Such a contract in no case replaces an employment contract. However, even in this case the employer must make contributions to the funds. Moreover, the procedure for their payment is the same: insurance premiums under a GPC agreement with a foreigner are calculated and transferred in the same order as in the case of concluding a similar agreement with a citizen of the Russian Federation.

Social insurance contributions

Insurance contributions for compulsory social insurance are charged on payments to all foreigners who have the status of:

1) permanent residents;

2) temporary residents;

3) temporarily staying (except for temporarily staying highly qualified specialists). At the same time, the tariff for calculating contributions to the Social Insurance Fund of Russia is:

• 1.8 percent – ​​for all temporary stayers, except for citizens of EAEU member countries;

• 2.9 percent – ​​for temporarily staying citizens of EAEU member countries.

Do not charge compulsory social insurance contributions for payments to foreigners temporarily staying in Russia - highly qualified specialists. An exception is made for highly qualified specialists from EAEU member countries temporarily staying in Russia. They are recognized as insured persons on the basis of existing international treaties, therefore, for payments in their favor, insurance premiums to the Social Insurance Fund of Russia must be charged at a rate of 2.9 percent.

Contributions to compulsory social insurance are subject to only payments accrued within the framework of labor relations. There is no need to pay insurance premiums to the Federal Social Insurance Fund of Russia for payments under civil contracts for the performance of work or provision of services.

This procedure follows from the provisions of paragraph 15 of part 1 and paragraph 2 of part 3 of article 9 of the Law of July 24, 2009 No. 212-FZ, part 1 of article 2 of the Law of December 29, 2006 No. 255-FZ and is confirmed by a letter from the Ministry of Labor of Russia dated 7 April 2015 No. 17-3/B-172.

What is the limit value

In order to calculate the contribution amount, two main parameters are required: base and tariff. We talked about tariffs earlier, now it’s time to explain what the base is, where it comes from and how the “limit value”, which is so similar to a mathematical term, is connected with it.

So, the basis for calculating contributions is the total amount of payments and benefits made to the employee. It is determined on a monthly accrual basis from the beginning of the calendar year (in our case, from January 1, 2021). In other words, this is the employee’s total income for all previous months. Example: the base for calculating contributions in May is the amount of payments and benefits made in favor of the employee for January, February, March, April and May of the current year.

Now let's remember the maximum value of the mentioned base. These are amounts established by law, upon reaching which the insurance premium rate changes. That is, starting from the month in which the employee’s total income exceeds this value, the insurance premium will be calculated at a new rate or will be canceled altogether.

Payers of insurance premiums

Articles 419 and 420 of the Tax Code of the Russian Federation establish the employer’s obligation to pay insurance premiums for foreigners, as well as for Russian employees. For working migrants, this is a definite plus, because the contributions made give the right to social support in cases established by law.

But for employers, insurance premiums are additional expenses that, alas, are not reimbursed by anyone. Conscientious employers are well aware that these costs fall entirely on their shoulders, so they plan their activities so as not to go into the red.

However, there are those who are closer to the methods of Ostap Bender than to reasonable judgments. Such “enterprising” employers do not think about the development and growth of income, but about how to avoid paying insurance premiums for foreigners or at least reduce them. Strictly speaking, there is only one way to avoid paying contributions - if you do not enter into an agreement. And many willingly take advantage of this, because this state of affairs is beneficial to both parties: neither the employer nor the employee issues permits, and there is simply nothing to pay insurance premiums for.

Still, I would like to believe that in the labor market there are more honest and law-abiding employers who strive to understand the intricacies of interaction with insurance funds. It is much more important for them to know how to make, and most importantly, how to fill out the calculation of insurance premiums, if there are foreigners, where and when to transfer funds.

Fines

Non-payment in the language of the law is called evasion, for which criminal liability is provided. The amount of fines is established by Articles 198 and 199 of the Criminal Code of the Russian Federation (hereinafter referred to as the Criminal Code of the Russian Federation) and depends on who is the payer of the contributions - an individual or an organization.

In addition, the same articles provide a classification of the amounts of contributions that are payable:

Penalties are applied in the following order:

Contributions from citizens of CIS countries

Employment issues can be regulated not only by the internal legislation of the country. Separate international agreements are often concluded that relate to certain areas of life. Regarding the topic of our article, perhaps, we can highlight two main documents that mention the insurance system.

The first is the Treaty on the Eurasian Economic Union, concluded on May 29, 2014. Initially, it was a trilateral agreement signed between the Russian Federation, Belarus and Kazakhstan, later Armenia and Kyrgyzstan joined it.

The agreement addresses issues of social insurance for employees. Following its provisions, it turns out that, for example, insurance premiums from the salaries of Kyrgyz people will be calculated in exactly the same way as in relation to Russian employees. The same agreement establishes that pension provision is carried out in accordance with the legislation of the country of permanent residence.

Accordingly, the same procedure applies to citizens of Kazakhstan, Armenia and Belarus if they work in Russia. In particular, in order to calculate insurance premiums for Belarusians in 2021, you need to turn to the Tax Code of the Russian Federation, which approved premium rates for several years in advance.

The second document is the Agreement on guarantees of the rights of citizens of the CIS member states in the field of pension provision dated March 13, 1992. Its provisions state that contributions to pension insurance are paid in accordance with the legislation of the country where the person permanently resides.

With social and medical insurance, the situation is a little different: there are no international treaties with the Commonwealth countries, therefore everything related to insurance premiums is regulated exclusively by the laws of the Russian Federation. In particular, to find out how many contributions and personal income tax to pay for citizens of Uzbekistan in Russia or what the tariff rates are for Moldovans, you need to refer to the above-mentioned Tax Code of the Russian Federation.

Double citizenship

Situation: is it necessary to charge insurance premiums for payments to an employee with dual citizenship? An employee permanently resides abroad and works in a Russian organization under an employment (civil) contract? The agreement was concluded with him as a citizen of Russia.

Yes need.

Citizens of Russia are recognized as insured persons:

• in terms of compulsory pension and health insurance, as well as in case of temporary disability and in connection with maternity - if they work under employment contracts;

• in terms of compulsory pension and health insurance - if they work under employment or civil contracts.

This procedure is provided for by paragraph 1 of Article 7 of the Law of December 15, 2001 No. 167-FZ, Article 10 of the Law of November 29, 2010 No. 326-FZ and part 1 of Article 2 of the Law of December 29, 2006 No. 255-FZ.

The presence of dual citizenship among Russian citizens does not limit their legal capacity in Russia. Neither the acquisition of dual citizenship nor residence in another country deprives a Russian citizen of his Russian citizenship. This follows from the provisions of Part 4 of Article 4 and Article 6 of the Law of May 31, 2002 No. 62-FZ. Thus, Russian citizens working under labor (civil law) contracts in Russian organizations are recognized as insured persons, regardless of where they actually carry out their labor activities (in Russia or abroad).

In turn, all Russian organizations that make payments to individuals within the framework of labor relations, as well as under civil contracts, the subject of which is the performance of work or the provision of services, are recognized as insurers. Consequently, if an organization accrues remuneration to a Russian citizen under an employment contract, it must pay from these amounts contributions for compulsory pension and health insurance, as well as insurance for temporary disability and maternity. If an organization accrues remuneration to a Russian citizen under a civil contract, it must pay contributions for compulsory pension and health insurance from these amounts.

Such requirements are established by Part 1 of Article 7 and Clause 2 of Part 3 of Article 9 of the Law of July 24, 2009 No. 212-FZ. This law does not provide for any specific features for calculating insurance premiums in connection with Russian citizens having dual citizenship. Therefore, it is necessary to calculate contributions for compulsory pension (social, medical) insurance under labor and civil contracts concluded by a Russian organization with Russian citizens who have dual citizenship and live outside Russia on a general basis.