The Russian government has proposed to allow self-employed Russians and citizens of other countries – members of the Eurasian Economic Union (EAEU) to register for tax accounting through a single portal of public services. The corresponding bill has been submitted to the State Duma for consideration.
It is assumed that after the adoption of the amendments, citizens of the Russian Federation and other EAEU countries (Belarus, Armenia, Kyrgyzstan and Kazakhstan) will be able to submit a referral to the tax authority for registration on the portal as a payer of professional income tax (NPD).
“An additional opportunity to interact with the operator of a single portal will allow taxpayers to“ expand ”the promptness of submitting an application to the tax authority for registration and (or) deregistration as a NPD payer,” reads the explanatory note to the bill.
It is expected that the innovations will allow to increase the number of individuals operating in the legal field, and with this, the income from them to the budgets of the constituent entities of the Russian Federation.
NPD is a preferential tax regime for self-employed, which gives them the right to legalize their business activities with minimal costs. The tax rate under the NPD is 4% (when calculating sales tax to Russian and foreign individuals) or 6% (for sales to Russian and foreign organizations and individual entrepreneurs) instead of 13% tax on personal income.
From January 1, 2019, the NPA was introduced as an experiment in four regions – Moscow, Moscow region, Tatarstan and Kaluga region. From January 1, 2020, it was extended to 19 more regions, and from July 1 of the same year – to the entire country.