Where to look for what is not subject to insurance premiums
In 2021, to understand what income is not subject to insurance premiums, you need to refer to Article 422 of the Tax Code. This article contains a closed list of positions. And this is important. Let us explain why. If you suddenly wonder what accruals are not subject to insurance contributions and in Art. 422 of the Tax Code of the Russian Federation did not find any mention of the corresponding amounts from your case, which means that contributions will still have to be calculated on them. Please note that tax authorities extremely do not like broad interpretations of closed lists by the persons they check in their favor. So, be prepared to defend your position if you think that in your case the amounts are not subject to insurance premiums.
Let’s say right away that there have been no global changes regarding payments that are not subject to insurance premiums. Their composition is quite uniform across different companies and individual entrepreneurs, so they almost mirrored the transition from the Law on Insurance Contributions No. 212-FZ to the new Chapter 34 “Insurance Premiums” of the Tax Code of the Russian Federation.
Also see “New chapter on insurance contributions to the Tax Code of the Russian Federation from 2021.”
Tutoring and housekeeping services
The following are exempt from taxes:
- nannies;
- cleaners;
- nurses
Monetary profits from their employment are not subject to taxation in accordance with paragraph 70 of Art. 217 Tax Code of the Russian Federation. But certain conditions must be met:
- Conduct your business without registering as an individual entrepreneur.
- Provide a range of services only for domestic or personal needs.
- Do not have hired workers on your staff. Serve clients personally.
- Submit a notification about the implementation of this activity.
Then the tax service will have no reason to make claims.
A complete list of what is not subject to insurance premiums
For convenience, we will show which payments are not subject to insurance premiums in 2021, in the form of a table.
| Type of payment | Explanation |
| State federal, regional and local benefits | This includes unemployment benefits and other amounts required under compulsory social insurance. |
| All types of compensation from the state (within standards) | They may be associated with: • harm from damage to health; • free provision of housing, payment for housing and communal services, food, fuel or their cash equivalent; • issuing products or money in exchange; • payment for some sports nutrition and other attributes for professional sports; • dismissal (exception: a) compensation for unclaimed leave; b) severance pay and average monthly salary over 3 times the amount (six times in the northern territories); c) compensation to the manager, his deputies and the chief accountant in excess of three times the average monthly salary); • training, retraining and advanced training of personnel; • costs of the contractor under a civil agreement; • employment of those laid off due to layoffs, in connection with the reorganization or closure of an organization, individual entrepreneur, notary, lawyer, etc. • performance of labor duties, including moving to another place (exception: money for negative labor factors), compensation for dairy products , for unclaimed leave (when not related to dismissal). |
| Disposable mat. help | • people due to natural disasters or other emergencies for compensation for material damage or harm to their health, as well as victims of terrorist attacks in the Russian Federation; • an employee whose family member has died; • employees at the birth (adoption) of a child (including guardianship) in the first year. Limit: up to 50 tr. for each child. |
| Income of indigenous peoples from their traditional trade | Exception: wages |
| Amounts of insurance contributions | Includes: • contributions for compulsory personnel insurance; • contributions under contracts of voluntary personal insurance of employees with a period of 1 year for medical payments. expenses; • contributions under medical contracts. services to employees for a period of 1 year with licensed honey. organizations; • contributions under voluntary personal insurance contracts in the event of one's death/or harm to health; • pension contributions under non-state pension agreements. |
| Additional employer contributions to funded pension | Up to 12 tr. per year per employee |
| The cost of travel for workers from the northern territories to the place of vacation and back and baggage allowance up to 30 kg kilograms | If you are on vacation abroad, then the cost of travel or flights (incl. luggage up to 30 kg) is not taxed. |
| Payments from election commissions, referendum commissions, from election funds | To positions elected in the Russian Federation: from the President of the Russian Federation to the local level |
| Cost of uniforms and uniforms | Issued by force of law, as well as to civil servants. Free or with partial payment. Remains for personal use. |
| Cost of travel benefits | Provided by law to certain categories of workers |
| Mat. assistance to employees | Up to 4000 rub. per person per billing period |
| Payment for employee training | For basic and additional professional educational programs |
| Amounts to employees to pay interest on loans and credits | This means that the loan was taken for the purchase and/or construction of housing |
| Cash allowance, provision of food and things | Applies to the military, police department, fire service, heads of federal courier communications, employees of the penal system, customs authorities |
| Payments and other remuneration under labor and civil law contracts (including author’s orders) in favor of foreigners, stateless persons temporarily staying in the Russian Federation | Exception: when such persons are recognized as insured under Russian law |
Note that in many of the cases listed above, an employment agreement or a civil law contract allows you to issue not only money, but also some kind of bonus. Which insurance premiums are not subject to will be clear from the type of contract (agreement) with the person. In other cases, there are no premiums that are not subject to insurance contributions.
Income tax
The main type of tax in Russia is the collection on personal income – personal income tax. It is also called income tax. At the same time, individuals include Russian and foreign citizens living in Russia, regardless of gender and age. Profits received by individuals as a result of activities carried out on the territory of the Russian Federation are subject to personal income tax.
Attention! To determine tax payer status and tax rates, citizenship is not the main factor. The fees depend on whether the resident is an individual or not.
The following citizens are tax residents:
- over the past 12 months, living in the Russian Federation for at least 183 calendar days;
- military personnel serving abroad, regardless of length of stay in the Russian Federation;
- civil servants who are on a business trip abroad, regardless of its duration.
Tax resident – not necessarily a citizen of the Russian Federation
There are types of income of citizens that are not subject to personal income tax. Non-taxable income tax payments include the following:
- various benefits, for example, unemployment, in connection with pregnancy, childbirth, child care;
- compensation payments due for unused vacation or upon dismissal from employment;
- pension accruals;
- student and scientific scholarships;
- additional payments for donation;
- monetary awards for high achievements and special merits in science;
- various grants;
- social additional payments, financial assistance;
- compensation for losses resulting from natural disasters and emergency situations;
- various types of alimony;
- rewards for assistance in solving crimes, preventing terrorist acts, and capturing dangerous criminals.
Pensions, various benefits, scholarships, additional payments, etc. are subject to personal income tax.
Attention! Also, funds allocated for charitable activities are not subject to income tax.
Payments for business trips
Let's focus on excess daily allowances. These amounts remained the same in 2021: from 700 rubles. within Russia and from 2.5 thousand for foreign trips. But in 2021, contributions will have to be calculated for exceeding these values.
This income tax rule also applies to large daily allowance contributions. Therefore, one can only say with a stretch about daily allowances that this is income not subject to insurance premiums.
For more information about this, see “How per diem is assessed in insurance premiums from 2021.”
Here’s something else that is not subject to insurance premiums and is directly related to business trips. These are the costs for:
- the path to the destination and back;
- airport taxes;
- commissions;
- way to the airport, train station (including transfers);
- baggage transportation;
- rental housing;
- mobile communications;
- fee for obtaining a foreign passport;
- visa fees;
- commission for currency exchange (check at the bank).
Similar rules on payments that are not subject to insurance premiums apply to members of the company's senior management bodies. When they come to a meeting of the board of directors, board, etc.
More income not subject to insurance premiums
Some amounts that are not subject to insurance premiums are somewhat different from all of the above. They are obviously not included in the contribution base (see table below).
| What are the fees? | What amounts |
| Contributions to OPS | Payments to: • prosecutors, investigators, federal and magistrate judges; • full-time students for activities in official student groups under labor or civil law agreements. |
| Contributions for illness and maternity | Any payments under the GPA: copyright, on the alienation of exclusive rights, publishing, licensing on the right to use a work of science, literature, art |
The most common payments: explanation
Civil contracts
In 2021, payments under civil law contracts, for the purchase of property or property rights are not subject to insurance premiums. As, indeed, under lease, loan, leasing, donation and other agreements, under which property and property rights are transferred for temporary use. An exception is contracts for construction, paid services, as well as copyright agreements. Payments under these agreements are subject to contributions. This follows from paragraph 4 of Article 420 of the Tax Code.
Prizes, pensions and scholarships
There is no need to charge insurance premiums when issuing prizes to customers, supplementing pensions to former employees, or paying scholarships under student contracts (including to full-time employees).
Material benefit
There is no need to pay insurance premiums for the material benefit that the employee receives due to savings on interest when receiving an interest-free loan from the employer.
Payments within the framework of labor relations
Let us repeat that Article 422 of the Tax Code of the Russian Federation establishes a closed list of payments that are exempt from insurance premiums in 2018. In particular, these are:
- state benefits that are paid in accordance with the legislation of the Russian Federation (subclause 1, clause 1, article 422 of the Tax Code);
- all types of compensation to employees determined by law within the limits established by the legislation of the Russian Federation. For example, severance pay within three times the average monthly salary (subclause 2, clause 1, article 422 of the Tax Code);
- amounts of one-time financial assistance to parents, adoptive parents or guardians upon the birth or adoption of a child. But only when such assistance is paid within the first year after birth or adoption and in an amount of no more than 50,000 rubles. for each child (subclause 3, clause 1, article 422 of the Tax Code);
- contributions for compulsory insurance of employees (subclause 5, clause 1, article 422 of the Tax Code);
- payment for training of employees for basic and additional professional programs (if the training is related to the professional activity of the employee and is carried out at the initiative of the organization) (subclause 12, clause 1, article 422 of the Tax Code), etc.
Read also
15.01.2021
Sources of bonus payments and grounds for their taxation
Unlike wages, cash bonuses are not mandatory payments. Such incentives are paid by decision of management in accordance with the internal rules of the organizations. In cases where regular bonus payments are provided for by a collective agreement or the company's charter, refusal to provide bonuses or a reduction in the amount of remuneration must be justified and formalized in the prescribed manner.
Most employers allocate incentive amounts as a separate part of the overall compensation system developed and approved by management for their employees. This makes it possible to interest and stimulate employees to generally improve the company’s performance, and also makes it possible to optimize income tax payments.
Bonus is an optional payment, which is made by decision of management, usually for certain merits of the employee
Sources of bonus amounts can be the cost part included in the company’s budget for salaries, wages for hired personnel, as well as the net profit of the enterprise. In the first case, bonuses are directly related to work activity and achievements at the end of a certain period.
Attention! Incentives from profits are usually allocated in connection with a certain event that is not directly related to the performance of functional duties or work results.
Regardless of whether monetary incentives are regular payments from the cost part of the budget or one-time rewards from profits, all these amounts relate to employee income, which is subject to mandatory taxation by law.
Bonuses are taxed as they are employee income
