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New Tax Regime for the Self-Employed

New Tax Regime for the Self-Employed

According to a bill, which has passed the third reading, there will be new tax regime for the self-employed in Moscow,  Moscow and Kaluga regions and the Republic of  Tatarstan in 2019 as an experiment.


Individuals and sole proprietors (without employees) with an annual income of less than 2.4 million rubles can become self-employed persons. Excluded categories are the following: sellers of excisable goods, mineral resources or persons using agency agreements.

The tax will be 4 % of the income in case of selling to individuals, 6 % in case of selling to companies and sole proprietors.  The Federal Taxation Service will provide an application “My tax” which will help to calculate the amount of tax.

It’s worth to note, that people using this tax regime will be exempted from obligatory insurance contributions, but they can contribute to the pension fund voluntarily to increase their future pension.