Putin proposed to extend tax holidays for self-employed for another two years

UFA, 24 October 2018. /Bashinform News Agency/ translated by Tatiana Aksyutina/. At the OPORA Russia’s Forum Russian President Vladimir Putin proposed to extend the temporary oversight exemption for part of small companies and self-employed individuals for another two years. “Experience has shown that there are areas that require constant and tougher control. This mainly concerns companies with so-called high-risk profiles, whose activities directly affect the lives and safety of people, as well as companies involved in specific areas and sectors, for instance, distribution of precious metals and stones. As regards other small companies and for self-employed individuals, I propose extending the temporary oversight exemption for another two years», Interfax cites Putin.

The pilot project for the taxes payment by self-employed was planned to start since January 1, 2019, in Moscow, the Moscow region, the Kaluga region, and Tatarstan. Accordingly, tax holidays can last until January 1, 2021.

In 2017, according to Rosstat, 19.8% of people were employed in the informal sector — more than 14 million people. In 2016, the share of the informal sector was 21.2%. The Ministry of Labor estimated in 2016 the loss from illegal employment at 500 billion rubles.