The Ministry of Finance proposed to limit the tax regime for the self-employed

Vitaly Prokaev, Deputy Director of the Department of Tax and Customs Policy of the Ministry of Finance, proposed limiting the tax on professional income for the self-employed. According to him, the services of the self-employed should be provided mainly to individuals.

“When we introduced this tax, we assumed that these were services from individuals to individuals. Although there is an extension in the law that it is possible to provide services to legal entities, the rate is 6%. But we still have an opinion in the department that this regime is good, but it needs to be narrowed down in some way so that it is used by certain people, ”said Vitaly Prokaev during a round table in the Federation Council (quote from RBC).

According to Mr. Prokaev, the Ministry of Finance has questions about the application of the tax regime for the self-employed. It should not compete with regimes for small and medium-sized businesses, Vitaly Prokaev noted.

A tax on professional income for self-employed citizens was introduced in 2019. The self-employed pay tax on income from self-employment at a reduced rate of 4% when providing services to individuals and 6% when providing services to legal entities. According to the Federal Tax Service and the Ministry of Economic Development, as of November 25, more than 6 million self-employed people were registered in Russia.

Lusine Balasyan