Self-Employed Propose Tax Extension Until 2028

The Union of Self-Employed Workers of Russia has formally approached the Ministry of Economic Development with suggestions for the future of the tax regime for independent workers. The current experimental tax system is scheduled to conclude at the end of 2028.

Key proposals include:

• Maintaining existing low tax rates
• Implementing a differentiated approach to social contributions based on income
• Extending the preferential regime beyond 2028

Other business groups share the desire for regime continuity but urge caution regarding social security payments.

The Union of Self-Employed Workers of Russia has sent a letter to the Ministry of Economic Development outlining their vision for the tax regime after 2028. The current system, which applies to independent workers, is operating as an experiment set to expire at the end of that year. The union is advocating for the preservation of the current framework to ensure stability for millions of workers.

The primary focus of the proposals is the financial burden on independent workers. The union argues that the current low tax rates are essential for the viability of self-employment in the country. They suggest that removing these incentives could negatively impact the sector's growth.

One of the specific ideas presented by the Union of Self-Employed Workers of Russia concerns social insurance contributions. Rather than a flat rate, the union proposes a differentiated approach. This would mean the amount paid in social contributions would depend directly on the level of income generated by the self-employed worker.

This approach is designed to make the system fairer for those earning less. Under the proposed model:

1. Workers with lower incomes would pay reduced contributions
2. Higher earners would contribute proportionally more

This stands in contrast to a uniform contribution rate which can be a heavy burden for those just starting out or operating in low-margin sectors.

The sentiment for extending the preferential tax regime is not limited to the union of self-employed workers. Other business associations have also expressed hope that the system will continue after the 2028 deadline. These groups are united in their desire to maintain the current favorable conditions to support entrepreneurship.

However, there is a divergence in opinion regarding social contributions. While the union of self-employed workers pushes for a differentiated model, other business groups advise a more cautious approach. They warn that changes to social contributions must be carefully weighed to avoid destabilizing the budget or creating administrative complexities.

The expiration of the experimental period in 2028 represents a critical juncture for Russia's labor market. The Ministry of Economic Development will need to evaluate these proposals against the broader economic landscape. The decisions made will determine the financial future of millions of citizens who have turned to self-employment.

Stakeholders are closely monitoring the ministry's response. The goal of the Union of Self-Employed Workers of Russia and other associations is to secure a permanent, stable tax environment that fosters growth rather than stifles it.