Individual entrepreneurs will pay 1% of net profit as insurance premiums

The government may adopt amendments to the legislation proposed by the Ministry of Finance, introducing a new principle of paying insurance premiums for individual entrepreneurs on a simplified taxation system. They will pay to the Pension Fund under the scheme "1% of the difference between income and expenses", or 1% of net profit, writes Kommersant . This is beneficial for medium-sized IP, and large ones may face an increase in load.

Like now. Since 2019, individual entrepreneurs have been paying a fixed payment to the Pension Fund - it is determined for each year and forms the minimum amount of pension savings necessary to form the pension rights of such persons.

• Now the payment is 29.3 thousand rubles.
• Individual entrepreneurs with an income above 300 thousand rubles pay an additional 1% of income in excess of this amount, but in total no more than 234.8 thousand rubles.
• The contribution for compulsory health insurance (CHI) to the MHIF for individual entrepreneurs is also fixed and amounts to 6.9 thousand rubles this year.

Detail. Now the individual entrepreneur himself determines the object of taxation - from income or according to the "income minus expenses" scheme. But 1% of income exceeding 300 thousand rubles (without deducting expenses from them), individual entrepreneurs pay regardless of the chosen object of taxation.

What will change. In this regard, the Ministry of Finance proposes to link the definition of the object of taxation of insurance premiums with the object of taxation chosen when applying the "simplification". Then insurance premiums will be formed in the amount of 1%, taking into account the object of taxation. If an individual entrepreneur decides to pay tax on the amount of “income minus expenses”, then insurance premiums will be formed in the amount of 1%, taking into account the deduction of expenses from the total amount of income. At the same time, the fixed part of the payments will remain mandatory. This will create "more comfortable conditions for the implementation of IP activities," the Ministry of Finance believes.

What is the risk. There are pluses and minuses in the new order, experts interviewed by Kommersant say. For small entrepreneurs, 1% of the amount of net profit will be an adequate burden, but for individual entrepreneurs with significant turnover without limiting the upper limit of the amount of insurance premiums, the burden will increase.

It is important that the fixed part of the payments will remain mandatory. Neither the zeroing of income nor losses will mean the zeroing of insurance premiums. They need to be paid even in the absence of activity, otherwise there is a risk of facing tax.