Self-employed number equaled individual entrepreneurs number in Russia - FTS

In 2021, the number of self-employed people has doubled; now, more than 3.5 million of them.

These data were announced in an interview with RBC by the head of the Federal Tax Service, Daniil Egorov. “Now there are more than 3.5 million self-employed and about 3.5 million individual entrepreneurs in the country,” he said. At the end of 2020, there were 1.6 million self-employed people in the country.

The increase in their number is also explained by the fact that many individual entrepreneurs chose to become self-employed; this is possible for entrepreneurs without hired workers, whose income does not exceed 200 thousand rubles per month. Self-employed pay 4% for services to individuals and 6% when working with companies instead of the standard income tax rate (PIT) of 13%. The tax regime for the self-employed was introduced in 2017. However, it gained the most significant popularity this year: since the beginning of 2021, the single tax on imputed income, the most beneficial tax regime for small businesses, has ceased to operate.

Daniil Egorov also said that the FTS planned to abandon the form of 3-NDFL tax returns submitted by 14 million Russians (tax is paid when selling property, receiving income from abroad, and executing GPC contracts). This will be possible if the tax service gains access to data allowing to calculate the amount of tax, the head of the Federal Tax Service explained.

According to the Federal Tax Service for Bashkiria, the number of self-employed in the republic exceeded 54 thousand people in the first half of the year. In January-June, the increase was 22 thousand. For the first half of the year, the self-employed paid 194 million rubles to the budget.