1. Personal Income Tax (PIT)
PIT Budgetary Classification Code (BCC) for 2022
The Ministry of Finance has approved new lists of PIT BCCs, which will replace the current lists from Order No. 99н dated 8 June 2020.
1. The order introduces a new 15% PIT BCC which will be charged from the base in excess of RUB 5 million. Individuals will be required to pay the tax upon receipt of a tax notice.182 1 01 02120 01 0000 110
2. BCC for PIT on salary and dividends in 2022 will remain the same:
- 182 1 01 02010 01 1000 110, if transferred by the tax agent;
- 182 1 01 02030 01 1000 110, if the recipient of dividends is an individual.
Document: Order of the Ministry of Finance of Russia No. 75н dated 8 June 2021 “On Approval of Budgetary Classification Codes (Lists of Codes) of the Russian Federation for 2022”
New Procedure for PIT Deductions
Starting from the 1st January, the procedure for social or property deductions has changed. Now, an entity will receive confirmation of the entitlement from the Federal Tax Service Inspectorate.
The employee will be required to file an application – it may be submitted in paper or electronic form (subject to electronic signature). A response from the public authority will be received within no later than 30 calendar days.
Document: Federal Law No. 100-FZ dated 20 April 2021
Changes in 2-NDFL Certificate for an Employee
The Federal Tax Service has adjusted the “2-NDFL Certificate for an Employee” form.
1. A form has been added with a new section where the following data need to be entered:
- Amount of income from which tax has not been withheld by the tax agent;
- Amount of non-withheld tax.
2. “Amount of corporate income tax subject to offset” has been added to the section.
A certificate in an updated form must be issued from 1 January 2022 on income received by an employee over the past year.
Document: Order No. ED-7-11/845 dated 28 September 2021
New Form of 3-NDFL Declaration
Starting from the 1st January, the 3-NDFL Declaration form has changed. Reporting changes are caused by the introduction of a 15% PIT rate in 2021 and the amendments to the Tax Code, which made it possible to receive PIT deductions under a simplified procedure. The increased rate must be applied by individuals whose annual income is more than RUB 5 million to an amount in excess of this figure.
The registration procedure has not changed. The declaration may be filled out on paper by hand, printed out or sent electronically.
Document: Order of the Federal Tax Service of Russia No. ED-7-11/903 dated 15 October 2021
2. Minimum Living Wage
Starting from 2022, the minimum living wage will be calculated by the constituent entities of the Russian Federation taking into account the regional differentiation coefficient. New formula:Minimum Living Wage in the constituent entity ≥ Minimum Living Wage in Russia as a whole x Regional Differentiation Coefficient
If a constituent entity of the Russian Federation is unable to increase the minimum living wage, it may do this in stages. The coefficients for the constituent entities are set out in the appendix to the Government Decree.
Document: Decree of the Government of the Russian Federation No. 1022 dated 26 June 2021, No. 1070 dated 30 June 2021
3. Social Insurance Fund (SIF) Benefits
New Procedure for Calculating Sick Leave Benefits
The main changes concern:
- The terms of payment. Now, benefits are transferred by the body of the fund, and not by the employer.
- The procedure for calculating the average earnings for persons who make social insurance premiums voluntarily. Benefits to such persons are paid on the basis of the minimum statutory wage (MSW).
- The procedure for calculating the average earnings for persons who work in areas where remuneration is paid subject to the regional coefficient. Benefits to such persons are paid on the basis of the MSW, with the regional coefficient added.
- The rules for assigning a benefit, if its actual amount is less than the amount of the benefit calculated from the MSW. If the disability benefit calculated in accordance with the provisions of Law No. 255-FZ is less than the benefit calculated on the basis of the MSW (a full calendar month), the benefit is assigned to an individual on the basis of the MSW. In this case, the MSW is taken into account on the date of the insured event.
Document: Decree of the Government of the Russian Federation No. 1540 dated 11 September 2021
System of Direct Payments from SIF Introduced from 2022
Starting from 1 January 2022, the practice of issuing paper sick leave certificates has discontinued. This decision is due to combating forged sick leave certificates and creating a unified information base.
For more information on how the system works, visit https://ubpo.ru/press/publications/elektronnye_bolnichnye_kak_rabotaet_sistema/
Document: Federal Law No. 126-FZ dated 30 April 2021
“Insured Party’s Data” Form in 2022
A new form has been introduced, which must be submitted by the employer to the SIF authorities.
- A new employee provides the employer with information – personal data and settlement account to which benefits will be sent – at the time of hiring.
- An existing employee may provide information at any time during the period of employment.
- The employer must transfer the information received to the SIF within three business days upon receipt.
Document: Clause 14 of Article 3 of Law No. 126-FZ dated 30 April 2021
Amounts of Benefits from SIF in 2022
The Ministry of Labour has published a draft with new coefficients for indexing payments, benefits, and compensations.
Starting from 1 February 2022, the coefficient for indexing payments, benefits, and compensations may change. The Ministry of Labour has published a draft whereunder the new coefficient will be 8.4% for a number of social benefits. The exact amounts will be known after the draft is approved.
Reimbursement for Days Off for Caring for Children with Disabilities
The new procedure includes provisions regarding the possible denial of reimbursement. A negative decision may be made if, as a result of an audit, the SIF establishes that the costs of paying for additional days off for caring for children with disabilities:
- Have been incurred in violation of the law; for example, the number of days paid exceeded the period established by the law;
- Have not been duly documented;
- Have been incurred on the basis of improperly executed documents.
Within 10 calendar days upon receipt of the application for reimbursement, the Fund must make a reasoned denial decision. Another 5 business days are provided for by the law to send the same to the entity being the policy holder in person, by registered mail or through telecommunications channels.
Document: Decree of the Government of the Russian Federation No. 1320 dated 9 August 2021
Payment for Additional Leave in Case of Occupational Injury in 2022
The government has amended the Regulations on the Payment of Additional Expenses for the Rehabilitation of Persons Injured as a Result of an Industrial Accident:
- No later than 2 weeks before the start of the employee’s “treatment” leave, the employer must submit to the SIF information about the insured person, as necessary for payment;
- If the employer provides incomplete information, the SIF is required to notify the employer of the missing information within 5 business days upon receipt of the data.
Document: Decree of the Government of the Russian Federation No. 1584 dated 21 September 2021
New SIF Audits and Fines from 2022
New types of desk and on-site audits are introduced, which will verify:
- Whether the primary activity as per the OKVED (All-Russian Classifier of Types of Economic Activities) is correct;
- The completeness and reliability of the information provided by the policy holder, as necessary for assigning and paying benefits, for making a decision on the financial security for preventive measures.
The approach to scheduled and unscheduled audits has not changed. Scheduled audits are carried out according to a schedule for the year. Unscheduled audits are carried out according to a signal (if there is information about violations or risks for employees), without further notice, and only after agreement with the prosecutor’s office. Possible signals may include:
- A complaint about violation of working conditions is received by the labour inspectorate or the prosecutor’s office;
- A risk of causing harm to human life and health, a threat of an emergency of a natural or man-made nature;
- Verification of performance of an order issued earlier to rectify violations that may entail a threat of harm to human life and health;
- Verification based on materials and appeals received by the prosecutor’s office.
Article of Law No. 248-FZ
Scheduled (desk or on-site) and unscheduled
Scheduled, unscheduled, inspection visits, observation, examination
Duration of desk or on-site audits
Max 20 days
Max 10 days
73, Clause 7;
72, Clause 7
New ways of interaction
Inspectors visited or requested documents
New audit types have appeared, which are carried out without direct interaction between inspectors and employers. Documents may now be exchanged online
8, 30 70, 56
Number of audits may be adjusted
Audited according to the plan, impossible to avoid the audit
Risks of harm may be insured to reduce audits
25, Clause 9
Format of scheduled audits
Direct interaction of controllers and the entity’s representatives
A scheduled audit may be replaced by monitoring, which is carried out automatically, without direct interaction between the parties
New Fines Are Introduced
For false information in documents submitted to the SIF, 20% of the overpaid amount of benefits. Not more than RUB 5,000 and not less than RUB 1,000.
For failure to meet the deadline for submitting information to the fund, as necessary for assigning and paying benefits, RUB 5,000.
Failure to submit documents regarding the reliability of information during the audit, RUB 200 for each document not submitted.
Insurance Premiums, Reporting
Maximum Amount of the Base for Premiums in 2022
The maximum amount of the taxable base for premiums in 2022 will increase by 1.069 times, as compared to 2021. By premium types:
- Pension – the planned maximum amount will be RUB 1,565,000 in 2022 (RUB 1,465,000 in 2021).
- For temporary disability and maternity, the planned maximum amount will be RUB 1,032,000 in 2022 (RUB 966,000 in 2021).
If the amount of taxable payments to an employee exceeds the maximum amount of the base:
- No premiums for temporary disability and maternity need to be accrued;
- Premiums for pension are accrued at a 10% rate.
Individual Entrepreneur Insurance Premiums in 2022
- Individual entrepreneur pension insurance premiums depend on the amount of income;
- Voluntary premiums to the SIF depend on the MSW and regional coefficients.
- Health insurance premiums are fixed at RUB 8,766.
Mandatory Pension Insurance Premiums
- If the income for the year does not exceed RUB 300,000 – RUB 34,445.
- If the income for the year is more than RUB 300,000 – +1% of the amount of income in excess of the specified amount. The maximum amount of interest should not exceed RUB 275,560 per year.
New Form of Insurance Contributions Calculation (ICC)
Starting from Q1 2022, a new ICC form must be used. The main changes include:
- Pages 120 to 123, which reflected the excess of expenses over premiums, have been removed from Section 1;
- In Appendix 2 to Section 1, the payment attribute field has been removed;
- Expenses reimbursed by the SIF must be indicated instead of expenses for the security payment (page 070);
- Amount of premiums payable must be indicated instead of expenses reimbursed by the SIF (page 080);
- Barcodes have been changed and OKVED2 code has been removed from the title page.
Document: Order of the Federal Tax Service of Russia dated 6 October 2021
New 6-NDFL Form
Starting from 2022, the 6-NDFL form will change. The changes must be taken into account when preparing reports for 2021. The main changes:
- A field has been added for offsetting the amount of income tax from the dividends received.
- Information on highly-skilled professionals has been highlighted. Thus, lines have been provided to indicate the total number of such employees, to whom income under employment contracts and civil law contracts has been accrued, and the total amount of calculated tax thereon on an accrual basis from the beginning of the tax period.
- Reporting period codes have been introduced for deregistered individual entrepreneurs and heads of peasant farm enterprises.
- Calculation page barcodes have been changed.
- One block of information on the tax deduction notification has been reduced.
- Appendix 4 has been supplemented.
Document: Order of the Federal Tax Service of Russia No. ED-7-11/845 dated 28 September 2021
Experiment: Unified Tax Payment
From 1 July to 31 December 2022, entities and individual entrepreneurs will be able to transfer a unified tax payment to the budget, as individuals do. This draft bill has been adopted by the State Duma on second reading. The new mechanism is voluntary. Based on the experiment results, it will become clear whether the new procedure will be extended after 2022.
To switch to a unified tax payment, you will need:
- To reconcile accounts with the tax office;
- To adjust the differences based on the reconciliation results;
- To apply for switching to a unified tax payment.
Document: Draft Bill No. 1141868-7