Individual entrepreneur

Economy and Labor Market in Russia

• Labor market in Russia
• Russian economy

Why register an individual entrepreneur

IP registration entails avoiding personal income taxes (personal income tax), reducing payments to the Pension Fund of the Russian Federation (Pension Fund of the Russian Federation) and the FSS (Social Insurance Fund).

On the other hand, the official registration of an individual entrepreneur opens up more opportunities in cooperation with various companies and companies that prefer, interacting with your organization, to transfer money to current accounts on a non-cash basis, and then write them off for expenses.

How many individual entrepreneurs in Russia

2023: The number of entrepreneurs in Russia reached its maximum since 2016

In 2023, the number of entrepreneurs in Russia became the maximum in 7 years. This was announced on January 15, 2024 by the Ministry of Economic Development.

We beat all records - the number of entrepreneurs in Russia has reached its maximum since 2016. The statistics for January 2024 are impressive: 6.35 million individual entrepreneurs and legal entities. 7% higher than in the pre-pandemic [we are talking about the COVID-19 coronavirus pandemic] period, - said in the Telegram channel of the department.

According to Izvestia, citing data from the Federal Tax Service, by the end of 2023, the number of individual entrepreneurs (individual entrepreneurs) in Russia reached 4.3 million people, which is 378 thousand people, or 10%, more than a year earlier. The newspaper's publication notes that in terms of dynamics, this is a record figure since 2007 - then their number increased by 426 thousand (or 16.7%), to 3.5 million. In other periods, the total number of IPs did not grow so significantly or even fell, the publication adds.

Natalya Milchakova, leading analyst at Freedom Finance Global, attributes the growth in business activity to the departure of foreign companies from Russia and the cessation of deliveries of part of imported products to the country.

So in the country, many niches were released in various markets, which the domestic small and medium-sized businesses successfully began to fill, "she explained.

Most of all in 2023, Russian entrepreneurs were interested in the online trade industry. 152 thousand were created in this sector of the economy. Individual entrepreneurs and companies, shared the general director of the SME Corporation Alexander Isaevich. Restaurants and companies for food delivery (plus 22 thousand) and software development (plus 15 thousand) were also actively created. According to Dmitry Zavyalov, Head of the Department of Entrepreneurship and Logistics of the PRUE named after G.V. Plekhanov, by 2023 the contribution of small and medium-sized enterprises to Russia's GDP is about 20%, which is significantly less than in the USA, the EU and China (about 60-70%).^[1][2]

2022: Growth in the total number of individual entrepreneurs to 3.77 million (+ 9.3 %)

By April 2022, the number of individual entrepreneurs for the year increased from 3.45 to 3.77 million (plus 9.3%), and legal entities decreased from 3.14 to 3 million (minus 4.7%). Entrepreneurs prefer to switch to alternative regimes (IP and self-employment) in order to reduce costs.

2021

Growth in the number of new individual entrepreneurs in Russia by 36.2%, to 824,680

In 2021, 824,680 individual entrepreneurs (individual entrepreneurs) appeared in Russia, which is 36.2% more than a year earlier. The volume of individual entrepreneur closures decreased by 15.6%, to 799,860 individual entrepreneurs. This was announced on February 14, 2022 by analysts of the audit and consulting network Finexpertiza, citing data from the Federal Tax Service (FTS).

Thus, over the year, the number of individual entrepreneurs in Russia increased by 24,820 units. Their total number in the country at the beginning of 2022 reached 3.59 million after 3.56 million as of January 1, 2021.

The strongest reduction in the number of individual entrepreneurs in 2021 was observed in Ingushetia (the republic lost 12.2% of its individual enterprises in a year), Chechnya (-11.7%), Dagestan (-10.5%), Arkhangelskaya (-6.4%), Belgorod (-6.1%), Sakhalin (-5.9%) and Magadan regions (-5.7%), Primorsky (-5.44%) and Kamchatka Territory (-5.41%), as well as in the Jewish Autonomous Region Region (-5.2%).

In 2021, there were 25 thousand more individual entrepreneurs in Russia

According to a study by Finexpertiza, the bulk of individual enterprises closed in 2021 - 65%, or 520 thousand - were liquidated on their own initiative.

Two times less individual entrepreneurs - 32.4%, or 259.4 thousand - were excluded from the register by decision of the tax authorities, since they did not submit reports for 15 months, and therefore were qualified as an inactive business.

Due to the physical death of the business owner, 2%, or 16 thousand, of individual enterprises were closed. This is 14% less than for the pandemic (coronavirus pandemic COVID-19) 2020 - then 18.7 thousand business owners died.

Other reasons for the liquidation of individual entrepreneurs are insignificant shares: 0.4%, or 2.94 thousand closings of individual entrepreneurs, fall on foreigners who left Russia, 0.2% were closed due to bankruptcy, or 1,481 businesses, only 18 individual entrepreneurs were liquidated by court order.^[3]

Closed 675 thousand individual entrepreneurs in 9 months

In the first 9 months of 2021, 675,000 individual entrepreneurs closed in Russia. This is the maximum since 2013.

2020

2.3 million individual entrepreneurs earned 20.23 trillion rubles

In Russia, there are more than 2.3 million individual entrepreneurs (individual entrepreneurs) who carried out their activities in 2020. This is evidenced by the data of Rosstat, published on December 30, 2021 as part of the operational results of the economic census of small businesses.

According to the statistics of the department, in 2020, individual entrepreneurs earned 20.23 trillion rubles, and the number of hired employees, partners and family members helping individual entrepreneurs conduct economic activities reached 5.37 million people. The last indicator includes the number of individual entrepreneurs themselves.

In Russia, there are more than 2.3 million individual entrepreneurs (individual entrepreneurs) who carried out their activities in 2020

According to Rosstat, most individual entrepreneurs are in the Central Federal District - 626.2 thousand people. The smallest number of individual entrepreneurs is registered in the Far Eastern Federal District - 126.1 thousand. The number of small and micro-enterprises in 2020 amounted to more than 1.4 million companies, in which 10.3 million people worked. The revenue of small businesses amounted to 48.9 trillion rubles, and investments - almost 1.9 trillion rubles.

According to TASS, all categories of individual entrepreneurs, micro and small enterprises took part in the economic census of small businesses, which provided information on revenue, the number of employees and a number of other indicators of their activities.

Rosstat noted that 10% of individual entrepreneurs and small enterprises passed the census through the State Public services portal, which was first used to collect this reporting.

In Russia, the number of people employed in small and medium-sized businesses is growing, which indicates the correctness and timeliness of decisions to reduce insurance premiums, pay direct subsidies for the minimum wage of workers, tax holidays and loan restructuring, said Alexander Kalinin, president of Opora Rossii, in an interview with Vedomosti.

In fact, all the support measures taken made it possible to partially "whitewash" the business, and many companies have officially registered part of their employees in order to apply for large subsidies and benefits, he said.

5.6 million SMEs registered

According to the register of small and medium-sized businesses, individual entrepreneurs are the most common form among SMEs. As of January 10, 2021, 5.6 million SMEs were registered in the register, of which 3.3 million were individual entrepreneurs. Individual entrepreneurs officially employed 2.5 million employees.

2014: 3.5 million individual entrepreneurs

According to the Federal Tax Service, as of January 1, 2014, 3 million 500.7 thousand were registered in the unified state register. PI.

In 2014, the number of newly registered individual entrepreneurs increased by 29% compared to 2013 (450.2 thousand), and in 2013 compared to 2012 (553.4 thousand) - by 19% less.

2015: 3.42 million individual entrepreneurs

At the beginning of 2015, the number of individual entrepreneurs in Russia amounted to 3 million 420.6 thousand, which is 80.1 thousand, or 2.3% less than in 2014.

The number of newly registered individual entrepreneurs (individual entrepreneurs) in 2015 (with the exception of those who registered and ceased their activities during the year) amounted to 653.4 thousand, which is 12.3% more than in 2014 (581.7 thousand).

The number of individual entrepreneurs who ceased operations in 2015 amounted to 564.5 thousand, which is 9.0% less than in 2014 (517.8 thousand).

Number of officially registered individual entrepreneurs and farms in Russia by year

2019: The number of individual entrepreneurs for the first time exceeded the number of legal entities

In 2019, the number of individual entrepreneurs in Russia for the first time exceeded the number of legal entities.

Experts interviewed by RBC attribute the reduction in the number of companies to the tightening of control of the Federal Tax Service and the recession of the economy.

2020: The number of closed individual entrepreneurs since the beginning of the epidemic in Russia increased by 77%

In March 2020, when the active spread of the coronavirus COVID-19 began in Russia, about 66.8 thousand individual entrepreneurs in the country ceased their activities, which is 77.2% more compared to the same period in 2019. This is evidenced by the data of the Federal Tax Service of the Russian Federation.

In March 2020, 64,237 entrepreneurs voluntarily curtailed their business, 1,563 disappeared due to the death of the owner, 158 were declared bankrupt. In just a month, about 2% of all individual entrepreneurs were liquidated.

Individual entrepreneurs began to close more often in Russia

In the first quarter of 2020, the number of closed individual entrepreneurs increased by 19.1% on an annualized basis (to 185.1 thousand), and in January-February the figure increased by 0.3%.

The number of newly registered individual entrepreneurs in January-February 2020 increased by 32.9% compared to the same period in 2019 - from 48.2 thousand to 64.1 thousand. In March, the dynamics changed - the number of registered individual entrepreneurs decreased by 13.4% compared to March 2019, to 119.1 thousand from 137.5 thousand.

According to the Federal Tax Service, as of April 1, 2020, 3.89 million individual entrepreneurs were registered in the unified state register, which is 0.1% less than at the beginning of 2020 - 3.9 million.

After the introduction of the self-isolation regime, 42% of individual entrepreneurs temporarily suspended their work, the Online Market Intelligence (OMI) survey conducted on April 15, 2020 showed. Another 41% admitted that it became more difficult to work. 10% said they didn't feel the change, and only 7% said they found it easier to work during the crisis.

The termination of the activities of individual entrepreneurs, and especially such an accelerated one, is a negative signal for the economy, which means that they do not see favorable prospects, Alexander Shcherbakov, professor at the Department of Labor and Social Policy of the RANEPA, told Vedomosti. According to him, entrepreneurs saw a reduction in demand and realized that they would not be able to provide for their business.^[4]

Activities of individual entrepreneurs

In which industries do individual entrepreneurs earn the most

Total income of individual entrepreneurs by areas. Source: Group of company Systematica. Data at the beginning of 2020

IP registration

2021: Reduction of IP status to a few minutes

In February 2021, the Federal Tax Service (FTS) of Russia announced a significant reduction in the time for obtaining the status of an individual entrepreneur.

We are now preparing a decision that will simplify the entry into the status of an individual entrepreneur close to the entrance, as it is implemented on taxes on professional income (NAP), where it will take several minutes, - said the head of the Federal Tax Service Daniil Egorov, speaking at a meeting of the Federation Council.

NPA is a special tax regime introduced to withdraw the self-employed and landlords from the shadows. NAPs can be used by individuals (both individual entrepreneurs and not) without employees and with an annual income of no more than 2.4 million rubles. NPAs cannot be selected if an entrepreneur sells excisable goods and goods of improper production. Tax rates in this mode - 4% when working with individuals and 6% when working with individual entrepreneurs and legal entities. When choosing a NAP, you do not need to hand over tax returns and insurance premiums, as well as open a settlement account with the bank.

FTS reported a significant reduction in the period of obtaining the status of individual entrepreneur to several minutes

According to the plans of the Federal Tax Service, the IP registration procedure will be as fast as in the case of the self-employed. Self-employed citizens who use a special tax regime do not need face-to-face visits to the Federal Tax Service. Registration of status, payment of taxes and reporting from them takes place through the mobile application "My Tax." The Federal Tax Service does not inform about how the accelerated registration procedure for individual entrepreneurs will work by February 10, 2021.

Experts of the Institute for Growth Economics named after Stolypin, whose chairman of the supervisory board is business ombudsman Boris Titov, expressed the idea of ​ ​ abolishing IP, while retaining legal entities and self-employed. The commissioner himself noted that around the world there are either self-employed people who cannot hire people for work, or legal entities - companies. According to him, the status of an individual entrepreneur has some illogical nature in terms of the withdrawal of finances, but it is simply impossible to liquidate it.^[5]

What does it take to open an individual entrepreneur?

Before you begin to collect papers for design, it will be useful to familiarize yourself with the following points:

• you must have a tax identification number (TIN). If at the moment you do not have it, it is possible to issue an application for obtaining it. You can do this both with the submission of the entire package of documents for registration of individual entrepreneurs, and in advance. Only in the first case, registration will take much longer instead of the prescribed 5 working days.

• You should decide in advance on the most suitable taxation system for you.

• You will need to decide on the types of activities that you will be engaged in (OKVED codes). They must be indicated when registering individual entrepreneurship. The code that will be written by you first is considered primary. It will determine the amount of the insurance rate of the Social Insurance Fund (FSS). Next, the second and third items from the above list will be discussed in more detail.

Selection of taxation system and OKVED codes

Let's start with the systems by which the amount of duty paid to the state is determined. All payments that are assigned to individual entrepreneurs are divided into 4 sections. These are:

• a fixed fee that is made to extra-budgetary funds "for themselves" (in 2014 it is 20727.53 rubles, in 2015 - 22261.38 rubles, in 2016 - 23153.33 rubles, and if its income exceeds 300,000 rubles, then another additional 1% of the amount of income exceeding 300 thousand);

• established payment made to extra-budgetary funds, which is removed from the wages of workers (an entrepreneur must exclude 13% of the amount of income of a person working for him);

• additional taxes, which are assigned according to the type of activity;

• taxes assigned depending on the tax system you specify.

There are several payments of the last type: The general taxation system or special regimes, which in turn are divided into:

• simplified taxation system (STS);
• the Unified Agricultural Tax (USN);
• a single tax on imputed income (UTII);
• taxation system in the implementation of production sharing agreements.

Each of them has its own features and criteria by which the amount of payment is determined. As for the OKVED codes, first you need to figure out what they are.

OKVED or All-Russian Classifier of Economic Activities codes are codes with encrypted and classified all types of activities that can be used if they have their own business.

When registering an individual entrepreneur, it is better to immediately decide what exactly you want to do and indicate not one, but several codes. Although, on the other hand, too many of them can entail certain problems and confusion in numbers. The size of the mandatory insurance rate depends on the selection of the main activity, i.e. the first code specified during registration. It should be borne in mind that it is possible to engage only in the activities specified when registering, and each of the activities corresponds to its own taxation system. They may vary depending on the region in which you register.

In July 2015, a law was adopted giving the right to municipal authorities to regulate the rate on UTII, and to regional authorities to reduce the tax rate on the USN with the object of taxation "Income." Both can independently determine the categories of entrepreneurs and the types of activities to which this benefit will apply. For example, for individual entrepreneurs on the USN with the object "income" the tax rate may decrease to 1%, and some regions have already adopted it. The UTII rate can float from 15% to 7.5%.

Required documents for registration

To register an IP, you will need:

• Passport.
• Stitched photocopy of each passport page. You will need it to send the documentation set by mail.
• Receipt certifying payment of the state fee for registration of individual entrepreneurs.
• A copy of the certificate with the taxpayer identification number (TIN), when available.
• Application for registration of an individual as an individual entrepreneur in the form of R21001. If the situation is such that the one who signed this paper for some reason does not have the opportunity to bring the papers personally, it is necessary to assure them from the notary to certify the signature of the applicant (1 copy).
• Application for the application of the simplified taxation system (STS) in form No. 26.2-1 (2 copies).

After submitting documents, you must receive a receipt for their receipt and one of the copies about the transition to a simplified tax system.

We write and submit an application to the tax

The registration application consists of five pages. In it, you need to indicate your full name, contact details (phone number and e-mail), passport data, OKVED and TIN codes. It must be filled in in printed letters and legible so that no problems arise in the future.

How much is it?

When self-registering yourself as an individual entrepreneur, the amount of expenses is only 800 rubles. It is in this amount that you need to pay the state duty in the nearest branch of Sberbank of Russia. The receipt that confirms this must be handed over along with all other documents. Also, when going to a lawyer in order to assure your statement, you will have to leave there about 350 rubles more. At the same time, he will check your document for errors so that they do not prevent you from registering as an individual entrepreneur.

What documents should be issued to you after registration?

The time during which the registration of an individual entrepreneur takes place has the opportunity to differ depending on the region where you will do it. But, basically, this procedure takes five working days. The date of issue of the papers will be written in the receipt that you will receive when submitting a package of documents. In the event that you do not have the opportunity to pick them up in person, they will be sent to you by mail.

Upon completion of registration, you receive the following papers in your hands:

• Certificate of state registration of an individual as an individual entrepreneur (OGRNIP).
• Certificate that you, as an individual, were registered with a tax institution.
• Extract from the Unified State Register of Individual Entrepreneurs (USRIP) (1-4 pages).
• Certificate that you, as an individual, were registered with the Pension Fund of the Russian Federation at the place of registration.
• Notification that you have been assigned statistics codes from Rosstat.

After that, you need to make copies of all the documents you received and then give them to the taxman.

Registration with other institutions

It may turn out that you will not be given some of the above papers. To receive them, the tax office will send information that you were registered as an individual entrepreneur to the Pension Fund of the Russian Federation. The FIU, in turn, will have to send you a certificate of registration by mail. If this does not happen, you will have to contact them yourself, having with you a Certificate of Registration of Individual Entrepreneurs (original and photocopy), taxpayer identification number and pension certificate.

Invoice, Printing, Reporting

After receiving all documents that indicate that you have every right to engage in entrepreneurial activity, the only main rule to remember is that you are now obliged to pay taxes, keep documentation and records.

In order to be able to make non-cash payments, it will be necessary to open a settlement account. It will also be needed in case of concluding contracts for an amount that exceeds 100,000 rubles, with other individual entrepreneurs.

To draw up a settlement account and certify your documents, you will need your own seal. Thus, if you have made a seal for yourself, then with the further work of one signature, in order to assure the document, it will no longer be enough.

In the event that your activity involves paying for services using cash or bank cards, you will need a cash register. Although there are exceptions related to the chosen taxation system and some trading conditions.

Why can they refuse registration?

The reasons why you may refuse to register may be different. Below are the main circumstances by which this may occur:

• If you entered incorrect data, made errors or typos when filling out documents.
• If you filed the wrong documents, or if they were not in full force.
• When you filed your paperwork in the wrong place.
• If you were declared bankrupt and less than a year has passed since that moment.
• If a verdict was put forward to ban entrepreneurial activity, and its validity period has not yet been released.

Changes in registration in 2016

Registration as an individual entrepreneur does not imply major changes. The main ones are associated with tougher liability for committing certain violations:

• In particular, if the registration body doubts the reliability of the data provided by the entrepreneur, it will be able to stop the registration process for a period of no more than 30 days.
• Persons who have violated the law during their previously organized entrepreneurial activities may be denied registration. Administrative penalties will become more severe: for example, when the wrong information is first provided, the fine varies from 5 to 10 thousand rubles.
• Administrative liability is also tightened upon registration using dummies. Moreover, the presence of a statement by a dummy director is now enough to prove the wrongfulness of the actions performed.

Termination of registration

2020: Tax authorities will be able to exclude individual entrepreneurs from the register forcibly

On September 1, 2020, the amendments made by the Federal Law of 12.11.2019 N 377-FZ to the Law "On State Registration of Legal Entities and Individual Entrepreneurs" entered into force. According to them, the tax authorities will be able to forcibly exclude an individual entrepreneur from the USRIP, subject to a number of conditions. 

In accordance with the innovations, in the event of the actual termination of the activities of an individual entrepreneur, it will be possible to exclude from the USRIP administratively by decision of the tax authority. The IP shall be recognized as terminated if the following conditions are simultaneously met by the registration authority:

FTS allowed to forcibly close IP

• 15 months have expired since the date of expiration of the patent, or the individual entrepreneur has not submitted to the tax authority reporting documents, information on calculations provided for by the legislation of the Russian Federation on taxes and fees within the last 15 months;
• Individual entrepreneur has arrears and debts in accordance with the legislation of the Russian Federation on taxes and fees.

  Before, it was possible to exclude an individual entrepreneur from the register without his application only by a court decision to declare a citizen bankrupt or to deprive him of the right to engage in entrepreneurial activity, as well as if the individual entrepreneur is a foreign citizen and a document confirming his right to temporarily or permanently reside in the Russian Federation has been canceled or expired.

The exclusion of an individual entrepreneur from the register may be appealed by creditors or other persons whose rights and legitimate interests were affected, within 1 year from the day they learned or had to find out about the violation of their rights.

After exclusion from the USRIP by decision of the registering authority, an individual will not be able to re-register as an individual entrepreneur within three years.^[6]

Submission of IP reporting

Among freelancers there is a special group - those who have already registered an individual entrepreneur, but do not officially conduct activities. Meanwhile, even such IP-nulevok have certain obligations to the state. This is what freelancers need to do so as not to violate tax laws.

Report to Rosstat every 5 years

By April 1, 2016, you need to submit reporting for 2015 to Rosstat. This also applies to those entrepreneurs who did not conduct any activities last year. Usually, individual entrepreneurs are exempt from statistical reporting, but once every five years, statistical bodies conduct a continuous survey of small and medium-sized businesses. That is why in 2016, individual entrepreneurs must fill out and hand over the form No. 1-entrepreneur. If the report is not submitted, then you can get an administrative fine, which for individual entrepreneurs ranges from 10 to 20 thousand rubles.

Zero reporting

During April, individual entrepreneurs must submit the so-called zero reporting. Even if there has been no movement of funds in your current account since you registered, you still need to report to the tax office. IP on a simplified basis - by April 30, send a declaration on the USN. IP on the general taxation system - by April 30 to transfer the personal income tax declaration and by April 25 - the VAT declaration (it is handed over four times a year before the 25th day of the month following the reporting quarter). By the way, the VAT declaration, at the request of the individual entrepreneur, can be replaced with a single simplified tax return (UND), which is easier to fill out. For the first quarter of 2016, the UND must be passed by April 20. For those who do not submit zero reporting on time, a fine of 1,000 rubles is provided for being late for each of the mentioned forms.

Paper or Internet

How IP-nulevki will submit their reports - to decide for themselves. The form of the declaration on the USN, the unified simplified declaration, as well as the 3-NDFL form and the report to Rosstat can be downloaded from the websites of the regulatory authorities, filled in and personally taken to the inspection or sent by mail. Another option is to pay money to a fellow freelancer who provides accounting services and will do everything for you.

Or you can try something new, for example, submit zero reporting yourself through an Internet service. For example, the nalog.ru has a free service for sending electronic reports to the Federal Tax Service. The services offered by software developers are usually more convenient.

Taxes and premiums

Insurance premiums

Entrepreneurs who do not conduct activities, like all other individual entrepreneurs, necessarily pay insurance premiums for themselves (Federal Law of 24.07.2009 No. 212-FZ). This is the 19,356,48 of a ruble to the Pension Fund and the 3796.85 of a ruble to the Medical Insurance Fund. If the individual entrepreneur was not registered since the beginning of the year, then the amount of insurance premiums will decrease in proportion to calendar days. The term for payment of insurance premiums in 2016 is until December 31, 2016. The law provides for some cases where an individual entrepreneur is exempted from this duty. For example, young people during military service or mothers who are on parental leave up to 1.5 years old may not pay contributions for themselves. To use the right not to pay contributions, it will be necessary to provide regulatory authorities with supporting documents, as well as prove the lack of activities and income.

Tax holidays

In 2016, the list of individual entrepreneurs covered by tax holidays expanded. Now these are not only entrepreneurs working in the scientific, production or social sphere, but also those who provide household services to the population. For example, a service such as "Beard haircut, mustache correction, sideburns, eyebrows" also gets here, which means that new broo bars (eyebrow correction salons) and barbershops (men's hairdressers), popular recently, will be able to pay zero tax on the USN and patent for two years. The full list of "beneficiaries" can be viewed in the All-Russian Classifier of Services to the Population (Federal Law of 13.07.2015 No. 232-FZ).

Finally, another plus - from 2016 to 2018, small businesses are exempted from scheduled inspections of regulatory authorities. These include Rospotrebnadzor, the Ministry of Labor and Social Development, the Ministry of Emergencies, the State Labor Inspectorate, the Office for Supervision of Consumer Rights Protection and Human Welfare, etc. The exception is the Federal Tax Service. Vigilance should not be lost to enterprises with risky activities and businessmen who were previously punished for gross violations or whose license was revoked - they will continue to be checked.

Fighting cashing out

In 2017, the Central Bank of the Russian Federation instructed credit institutions to actively look for cash and report dubious companies to tax officials. Banks will look at the amount of taxes for a specific parameter, and compare salaries with personal income tax and contributions. And a lot more. We will tell you by what criteria the bank will consider your business dubious and report to the tax office.

The methodology (from 21.07.2017 No. 18-MR) came out from the Central Bank to identify tax schemes.

The Central Bank wants banks to track the amount of taxes and other payments to the budget from their clients.

If a company or individual entrepreneur pays taxes less than 0.9% of debit turnover, then the account is likely to be blocked.

Of course, the Central Bank makes a note: paying taxes below the indicated level is not the only determining factor for the "automatic" recognition of the fact that the client has committed dubious transactions.

In addition to the criterion for the level of tax payment, the Central Bank in methodology No. 18-MR offered banks the following:

• from the account do not pay the salary of the client's employees;
• Personal income tax and contributions or the salary itself does not correspond to the average number of employees;
• the wage fund is set at a rate below the subsistence level;
• personal income tax is transferred, but insurance premiums are not paid;
• No balance or small compared to normal transactions
• payments are not related to the costs inherent in the activity;
• there is no connection between the grounds for crediting money to the account and its subsequent debiting;
• there was a sharp increase in account turnover;
• there are no payments usual for business: for example, rent, communal apartments, procurement of stationery, etc.;
• funds are credited to the account from counterparties under contracts with VAT allocation and almost in full are debited by the client in favor of counterparties for objects not subject to VAT. The bank will look at its other clients who are engaged in a similar business. And he will compare what happens to them with VAT in similar situations.

But the above criteria of the Central Bank are not enough. It recalls the obligation of banks to track:

• IP address,
• MAC address,
• SIM card number,
• phone number, etc.

Moreover, banks are instructed to find out whether this data does not coincide with the data of other firms whose accounts were closed as part of "anti-legalization" measures.

I.e. firms serviced by the same accounting firm may come under scrutiny if any of the clients are found to be unreliable.

The second methodology of the Central Bank (dated 21.07.2017 No. 19-MR) concerns companies and individual entrepreneurs who receive cash using corporate cards. The Central Bank believes that the possible goals of such operations are to legalize income and help terrorists.

The Central Bank accuses banks of ignoring the maximum amount of cash recommended for legal entities and individual entrepreneurs, which can be obtained using corporate cards within one operating day (no more than 100 thousand rubles).

Signs from the training manual No. 19-MR, according to which the company or individual entrepreneur is recognized as unfair:

• the ratio of the amount of cash received per week to turnover on bank accounts is 30% or more;
• less than two years have passed since the creation of the legal entity;
• the activity of the client, in which money is received into the account and debited from it, does not create obligations to pay taxes. Or the tax burden is minimal;
• money goes to the account from counterparties whose bank accounts are transited;
• funds are received from the counterparty to the client's account with the simultaneous receipt of money from the same counterparty to the accounts of other clients;
• money goes to the account in amounts, as a rule, not exceeding 600 thousand rubles;
• withdrawal of cash regularly: as a rule, daily or within a period not exceeding three to five days from the date of receipt;
• cash is withdrawn, as a rule, no more than 600 thousand rubles, or in an amount equal to or slightly less than the limit set by the bank for the day;
• cash is withdrawn at the end of the business day with subsequent cash withdrawal at the beginning of the next business day;
• the client has several corporate cards, and with their use, cash receipt operations are mainly carried out.

In the methodology No. 19-MR, recommendations are given to banks that will make it better in the eyes of the Central Bank. Banks need:

• periodically analyze the amounts of cash that can be issued within one operating day using all corporate cards of the client;
• conduct at least once a week monitoring of customer operations, guided by the new methodology;
• send information about suspicious clients to Rosfinmonitoring.

The new recommendations of the Central Bank are especially dangerous for individual entrepreneurs who use corporate cards to withdraw their own money from current accounts. If banks start working according to the methodology, this may lead to the impossibility of using cards for such transactions. After all, the individual entrepreneur will not be able to prove where the withdrawn money went^[7].

Notes