Abolishment of SPV-M and SPV-TD as of January 1, 2023, in Russia

The Ministry of Labour of the Russian Federation abolished monthly SPV-M and SPV-TD, and three other reports, which will come to force on January 1, 2023. Accountants are to submit two new forms instead of the five usual ones. The changes have been made due to the merger of the Pension Fund and the Social Insurance Fund, and from 2023 a single fund will operate in Russia, i.e., the Pension and Social Insurance Fund of the Russian Federation (FPSS).

This will lead to changes to the entire existing system of compulsory insurance, particularly the rules for calculating and paying insurance premiums. A single tariff for insurance premiums, a single circle of insured people, and a single marginal and taxable base for insurance premiums are to be introduced next year. People working under civil law contracts, students studying full time in educational institutions, such as secondary technical schools, and higher vocational education, and those receiving payments for activities in a students’ team under employment contracts or under GPC agreements are to be added to the list of people covered by the compulsory insurance.

Besides, foreign citizens temporarily staying in the Russian Federation and stateless persons, as well as highly qualified foreign specialists permanently residing in the country, are to be included in the list of compulsory health insurance. Thus, employers are excluded from the obligation to provide such employees with VHI policies or contracts for the provision of paid medical services. The mentioned guarantees remain only for highly qualified specialists temporarily staying in Russia.

Insurance premiums for compulsory pension insurance, temporary disability insurance, maternity insurance, and compulsory medical insurance are to be paid by single payment terms for one CCC (new version of Clause 6 of Article 431 of the Tax Code of the Russian Federation). This will reduce the number of indices in reporting on insurance premiums and payment instruments, thereby minimizing the administrative burden on business.

Not only the procedure, but the deadline for paying insurance premiums will change as well. The amount of insurance premiums is paid no later than the 15^th day of each month now, but it is to be paid no later than the 25^th day of the next calendar month (under the new version of Clause 3, Article 431 of the tax Code) from 2023.

The existing personalized reporting is either to be abolished or to be included in the unified quarterly report submitted to the FPSS. The deadline for insurance premiums submission was no later than the 30^th day, but it will be no later than the 20^th day of the month following the reporting/billing period.

Organizations and individual entrepreneurs are to pay contributions for mandatory pension insurance, temporary disability and maternity insurance, and compulsory health insurance at a single general rate.

Small and medium-sized businesses will pay contributions (payments exceeding the minimum wage) at an indefinite preferential rate of 15%, but residents of TASED, the free port of Vladivostok, the SEZ Kaliningrad, companies in the Kuril Islands, and IT companies will pay contributions at an indefinite rate of 7,6%.

Payments and other remunerations made in favor of prosecutors, employees of the Investigation Committee, judges, and magistrates for compulsory social insurance in case of temporary disability and due to motherhood will be 2.9%, and for health insurance, 5.1%. They will not calculate and pay contributions to pension insurance.

Individual entrepreneurs having no employees will have no changes if their annual income does not exceed 300.000 rubles and they will pay insurance premiums for mandatory pension and medical insurance total of 45.842 rubles.

Policyholders will submit the calculation of insurance premiums to the IGTSS no later than the 20^th day of the month following the billing/reporting period. The calculation will be submitted at the end of the first quarter, six months, and 9 months. The calculation is submitted at the location of the organization and the location of each unit a bank account is open for and pays salary to employees.

Should there be any errors in the information on the number of payments and other remunerations to the employees, about the base for calculating insurance premiums, information on the number of insurance premiums, in the base for calculating insurance premiums, and so on, the calculation of insurance premiums will be considered not submitted.

The above–mentioned amendments and changes are to be effective from January 1, 2023.