“Risky Simplified System” — Valeria Dementyevskaya for Delovoy Peterburg
Companies switching to the automated simplified taxation system may lose the opportunity to engage freelance contractors. The regulators' position remains contradictory, but a wrong choice could result in multi-million ruble losses.
The application of the Automated Simplified Taxation System (ASTS) exempts companies with a turnover of up to 60 million rubles from VAT and all "salary" taxes (insurance premiums). This special regime has already been chosen by 19 thousand St. Petersburg taxpayers, with a boom observed since the beginning of this year. However, significant restrictions are also established for them.
When calculating the headcount, all freelancers — contractors under civil law contracts — are included. This applies regardless of the payment terms (fixed or hourly) and the actual hours worked. One might assume that this policy of Rosstat is aimed at countering the practice of concluding civil law contracts instead of employment contracts,
— believes Valeria Dementyevskaya, Advisor to the Tax Practice at the Prime Advice Consulting Group.
Experts draw attention to the fact that the self-employed — contractors who are payers of the professional income tax — are not included in the employee count.
This policy essentially encourages companies using the ASTS to offer freelancers to register as self-employed. Given that the employer withholds 13% personal income tax from income paid under civil law contracts, while the self-employed person pays more than 2 times less (only 6%),
— notes Valeria Dementyevskaya.