UST since 2018
Since 2018, the next changes come into effect, which will affect the payment of UST. Authorities plan to implement a tax maneuver, reducing the rates of insurance premiums. At the same time, other taxes will be proportionally increased, which will preserve the level of tax burden on the business. Experts note the imbalance of the current system of insurance deductions, which creates serious risks for the domestic economy.
Expected changes in UST since 2018
The domestic economy needs new growth factors, officials underline. Despite the end of the economic crisis, GDP growth rates remain low, which can lead to a prolonged period of stagnation. Structural reforms will accelerate the growth of the Russian economy, according to representatives of the Ministry of Economic Development. One of the most anticipated innovations in 2018 is tax reform, which will affect the basic parameters of the fiscal system.
In 2018, the changes may affect the unified social tax, which will improve the competitive position of the domestic economy.After the election, the authorities will be able to launch a tax maneuver that will lead to a cumulative reduction in insurance premiums. In this case, a moderate increase in VAT will act as a compensator.
The unified social tax includes three main components:
- pension contributions (22%);
- HIF (5.1%);
- social insurance (2.9%).
If the salary exceeds the established standard (more than 870 thousand rubles.), Then the rate of deductions to the PFR is reduced to 10%. In addition, if the salary exceeds 755 thousand rubles, then the excess amount does not accrue contributions to the Social Insurance Fund.
As a result, the total load on the employer reaches 30%. The Ministry of Finance is considering several scenarios of reform, which will affect the change in UST rates from 2018.
Options for reform: problems of the MHIF
Next year, the total burden on employers may decrease, the Ministry of Finance stresses. The authorities are considering options for reducing insurance premiums, which will be an additional incentive for the growth of the domestic economy. However, officials must reckon with existing economic realities.
Representatives of the Ministry of Finance allow several options for changing the table of UST coefficients. First of all, officials are forced to respond to the lack of funds in the MHIF, which is an obstacle to the implementation of the May decrees of the President of the Russian Federation.As a result, the authorities plan to increase contributions to the MHIF from 2019 by 0.8%.
The government stressed the need to increase deductions for medical insurance. Otherwise, the authorities will not be able to provide an increase in salaries of doctors, which is fixed in May decrees. In addition, officials take into account possible risks for business representatives. If the initial version of the reform suggested an increase in allocations by 4%, then after discussions this figure was reduced to 0.8%.
Raising contributions to the MHIF to 5.9% will lead to an increase in revenues of 190 billion rubles, officials underline. As a result, the increase in salaries of doctors will be fully financed, and the deficit of the fund will be minimized. In addition, the Ministry of Finance is considering options for adjusting pension contributions, which may start next year.
The Ministry of Finance planned to cancel the threshold for paying insurance premiums to the Pension Fund, which would reduce the budget deficit of the fund. Representatives of the ministry stressed that contributions at the rate of 22% should be paid from the entire amount of the salary, which is consistent with the principle of social justice. However, this measure did not find support among the government.The current moratorium on increasing the tax burden forces officials to look for other options to increase budget revenues.
As part of another initiative of the Ministry of Finance, the unified social tax can be significantly reduced from 2018, while the decline in revenues from the unified social tax will be compensated by increasing the VAT rates. The reduction in insurance premiums will lead to a reduction in the shadow sector of the economy, emphasizes the head of department, Anton Siluanov. According to the calculations of the Ministry of Finance, the total burden on the employer can be reduced to 22%.
Too much tax burden on the employer has a negative effect on the investment attractiveness of the Russian economy, officials believe. Representatives of the Ministry of Finance emphasize that the current system of insurance contributions hinders the recovery of economic growth. In addition, additional incentives are created to pay salaries in envelopes, which leads to a decrease in budget revenues.
The tax maneuver will be compensated by an increase in the VAT rate of up to 22%. As a result, part of the tax burden will be shifted from employers to end users.This reform is consistent with the recommendations of the IMF and will help improve the position of domestic exporters. In fact, the effect of tax devaluation will be achieved - Russian goods will receive additional benefits in international markets.
Experts point out the pros and cons of the expected UST reform in 2018, highlighting the vulnerability of domestic companies after the end of the crisis.
Experts negatively assess the intentions of the Ministry of Finance to increase insurance premiums. The increase in contributions to the MHIF by 0.8% and the use of a single rate for the entire salary will affect the deterioration of the financial situation of business representatives. However, many companies have not yet recovered from the economic crisis. As a result, the time frame for economic recovery will be extended over a longer period.
Authorities should not shift all costs on the shoulders of the business, experts say. Such an approach is fraught with a systemic crisis of the Russian economy, which can only be overcome after a significant increase in oil prices.
The maneuver associated with a decrease in contributions due to an increase in the VAT rate has several advantages.A reduction in direct labor taxes will be an additional incentive for employers. In addition, export-oriented companies will be in an advantageous position. As a result, there will be a reduction in the cost of Russian goods on international markets, which will expand the capabilities of exporters.
Another advantage of the maneuver is the creation of conditions for the legalization of wages. The rate reduction will encourage employers to officially pay wages, which will compensate for the absolute decrease in the percentage of insurance premiums.
In addition to stimulating economic growth, the reform of the system of insurance contributions must solve the problem of balanced budgets, experts say. Otherwise, the growing deficit of the PFR and the MHIF can lead to a collapse of the social security system. At the same time, the government can not only increase revenues, but also optimize costs.
Reform of the pension system should include changes in key payment accrual parameters, including adjustment of the retirement age. Only an integrated approach aimed at reducing the costs of the FIU,will allow to balance the budget of the fund in the medium term.
The latest news confirms the intention of the authorities to make changes to the unified social tax in 2018. At the same time, the government is considering several options for reform aimed at adjusting insurance premiums.
The total tax burden on labor can be increased to 30.8% (due to additional deductions in the amount of 0.8% in the MHIF). However, experts and business representatives consider this initiative premature. In addition, the Ministry of Finance is considering the possibility of tax maneuver, which will reduce the total insurance premiums to 22%. At the same time, the decrease in revenues will be compensated for by increasing the VAT rate.