ELENA MININA: “WHO WILL BE AFFECTED BY 12 CHANGES IN THE TAX CODE”

“Digitalization provides an opportunity to expand the boundaries of taxation in a particular country, both in terms of companies and individuals. Taxation of non-resident foreign workers is a vivid example. Technically, the application of the institution of tax agents is expedient. This is new in taxation, however, timely and relevant, especially in the context of the proposal to establish uniform rates for all employees, regardless of their residency.

I support the idea of tax exempting the costs when working fr om home, however, within certain limits. It should be noted that there were certain tax exemptions in the foreign countries, wh ere workers were combining online work from home with office off-line even before the pandemic. Thus, in Australia, even before the pandemic, a share of the costs not compensated by the employer was deducted according to certain rules as part of PIT. However, during the pandemic, a new, simpler costing method started up. The Ministry of Finance has not yet proposed such an option.

During the pandemic, the United Kingdom introduced the option now proposed by the Ministry of Finance: the employer's compensation is not subject to income tax (indeed, in the United Kingdom it also includes insurance premiums). It is not yet clear what will happen in Russia in terms of insurance premiums; I have not seen the text of the "Guidelines".

I also support the change in the terms of the social deduction for medical treatment and medicines. In my opinion, it is likewise advisable to revise upward the amount of social deductions both for medical treatment and medicines as well as for education. The maximum is Rub.120.000 (PIT refund shall be Rub 15.600). Currently, the exception to the rule concerns only medical treatment. The amount of deduction for children education is even less, i.e. Rub 50.000, and the refund, respectively, is only Rub 6.500."