Russia to tax the self-employed...

The Man

Former Staff
Jul 2011
45,270
31,918
Toronto
#1
Russia has introduced a new tax that will affect self-employed babysitters, tutors, translators and other freelancers in Moscow and three other regions starting on Jan. 1, 2019.

Under the new law, self-employed Russians will be subject to a 4 percent tax on their income, while those who provide services to companies or individual entrepreneurs will be charged 6 percent. The new law is part of an effort to raise tax revenues and legalize the under-the-table income of an estimated 20 million self-employed Russians who do not currently pay taxes.

The new law, which was signed by President Vladimir Putin on Tuesday, will be rolled out in an initial “experimental” phase in Moscow and the Moscow region, as well as the Voronezh region and the republic of Tatarstan starting next year.

The experimental phase will last in the four federal subjects until 2028, the success of which will determine whether it will be expanded nationwide.

“No tax will be levied on those who helped out their neighbors in their yard, but if they earn money doing the work regularly – we give them a chance to legalize themselves,” Russia’s State Duma explained on its website.

Under the law, self-employed workers will be exempt from paying income and value-added taxes, with the exception of imports of products from abroad.
Freelancers in Russia Will be Taxed Under New 'Experimental' Law

I get it, the government's logic. That 20 million figure is actually a low estimate. Because aside from those actually known to be self-employed, tons of people who are in regular jobs there, also tend to do work on the side, in off hours, for cash.

Really, anybody who has any kind of skills, uses them to earn cash and evade taxes.

Women bake cakes and other pastries and sell them online and such

and they do hair styling

and nails and such, all at home-based improvised salons advertised also online and via the "skirt radio" (word of mouth from woman to woman lol), all for cash, of course.

While men do all kinds of repairs and mechanical work on cars

and appliances and such, and minor construction, also for cash.

There's people running fucking tattoo parlors out of their homes too

which (like the aforementioned bakeries and other home-based cash-for-food services) can have awful sanitation and such issues... Many are only marginally better than how inmates ink each other in the prison camps, if that (and plenty of these "masters" learned the trade behind bars in the first place haha)

Anyhow, yeah, anyone who can help it evades taxes there.

Like, in America, you say,
"Two things are certain in life - death and taxes."

In Russia, it's more like "Taxes are for morons." :D They are highly patriotic, nationalistic people... except when it comes to sharing their money with the Motherland's government ;)

So, I get, again, the reasoning behind this initiative.

But... Why now? Have they not yet pissed off enough people with the pension age hike???
 
Mar 2010
20,196
12,991
Indiana
#2
Russia has squandered so much on military spending it's time to pay the piper. The Russian government is desperate.

It will happen here in the U.S. too at some point. Our deficit will come home to roost at some point.
 
Likes: The Man
Oct 2014
31,398
5,583
C-A-N-A-D-A-Eh
#4
I remember being a subcontractor; I miss the pay style at least...

None of this earning 30% less than is made, instead it's "ok, the job is worth X + tax. Here's your bill" Of course that requires people being responsible... I've known a few people that found themselves in so deep of debt that they went bankrupt. The worst was one case where he owed like 90k in taxes.
 
Likes: The Man

The Man

Former Staff
Jul 2011
45,270
31,918
Toronto
#5
Russia has squandered so much on military spending it's time to pay the piper. The Russian government is desperate.

It will happen here in the U.S. too at some point. Our deficit will come home to roost at some point.
Not only military spending. Expansionism/imperialism in itself is not cheap. They spend lots of money on Crimea, Donbass, my own former homeland Abkhazia too, etc.
 
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