On December 31, 2018, Decree No. 500 “On State Social Insurance” came into force, which changed some payments of mandatory insurance contributions, contributions to professional pension insurance and other payments to the budget of the social protection fund of the Republic of Belarus. Deputy Head of the Gomel Regional Department of the Social Protection Fund Irina Sivakova spoke in detail about the innovations.

– Irina Viktorovna, the norms of the decree include in the state social insurance system individuals who carry out activities that are not related to business, the so-called self-employed citizens. Previously, they did not have the right to pay contributions to the Social Security Fund, form an insurance record, and if they did not have the required number of years of insurance service, in the future they could only count on receiving a social pension, which currently amounts to 50 percent of the subsistence level budget, which is 107 rubles. What did the decree change?

– With the entry into force of the decree, self-employed citizens received the right to participate in the state social insurance system, subject to payment of contributions to pension insurance. Accordingly, they have the opportunity to build up an insurance period to obtain the right to a pension in cases of reaching retirement age, disability, or loss of a breadwinner.

Individuals who have expressed a desire to participate in the state social insurance system will be able to pay mandatory insurance contributions only from the date of registration with the fund as payers. To do this, they need to contact the territorial body of the social protection fund at the place of registration (registration) with an identification document and a document confirming the payment of a single tax for carrying out one of the types of activities specified in Article 337 of the Tax Code. Those categories of individuals for whom the payment of a single tax is not provided - with a document confirming the implementation of the activity, and with an application for registration, which will indicate the type of activity being carried out.

Mandatory insurance contributions are paid by self-employed persons only for pension insurance in the amount of 29 percent of their independently determined income for the periods of activity, and the amount of contributions must be no less than the amount calculated for the specified period from the amount of the minimum wage.

Already in January 2019, the minimum monthly payment due, provided the activity is carried out for a full month and taking into account the minimum wage, which has increased to 330 rubles since January 2019, will be 95.7 rubles.

"Individual entrepreneurs, lawyers and notaries are given the right not to pay contributions for periods of non-performance of relevant activities in the reporting year, indicating such periods in personalized accounting documents. In the case of activities carried out throughout 2018, the minimum amount of mandatory insurance contributions payable to the fund budget , amounted to 1281 rubles (106.75 rubles for the full month).

Self-employed persons will be provided with state benefits: women registered with health care organizations before the 12th week of pregnancy; in connection with the birth of a child; caring for a child under three years of age; families for children aged from three to 18 years during the period of raising a child under three years of age; for children over three years of age from certain categories of families.

But here we must keep in mind that if the mother in a two-parent family is self-employed and the father works, then state benefits are assigned and paid at the place of work of the child’s father from state social insurance funds. If the family is single-parent or both parents are self-employed, benefits are assigned and paid by labor, employment and social protection authorities in accordance with registration at their place of residence from the republican budget. Self-employed persons will not be assigned or paid benefits for temporary disability and maternity benefits.

– The decree also affected individual entrepreneurs, lawyers and notaries. What changes affect them?

– The norms of the decree give these categories of citizens the right not to pay contributions for periods of non-implementation of relevant activities in the reporting year, indicating such periods in personalized accounting documents. If activities are carried out throughout 2018, the minimum amount of mandatory insurance contributions payable to the fund’s budget was 1,281 rubles (106.75 rubles for a full month).

If there are periods of inactivity, you can calculate the amount of mandatory insurance contributions payable to the fund’s budget for 2018, taking into account periods of inactivity, using the “Calculator” on the fund’s website (ssf.gov.by).

– What algorithm of actions is provided to confirm periods of implementation or non-performance of activities, the amount of mandatory insurance premiums for these periods?

– Individual entrepreneurs, notaries and lawyers must submit individual (personalized) accounting documents to the fund authorities once a year, but no later than March 31 of the year following the reporting year.

"On January 1, 2019, 5.5 thousand individuals operating on the application principle were registered with the tax authorities of the Gomel region. In the Gomel region, for example, the most Popular activities include the sale of works of painting, graphics, sculpture, the sale of floriculture products, tutoring, services for growing agricultural products, hairdressing and beauty services, video filming services, and the sale of kittens and puppies.

Changes have already been made to the procedure for filling out personalized accounting documents. A special code has been added that will confirm periods of inactivity. Thus, for individual entrepreneurs, lawyers and notaries, the submission of personalized accounting documents for the reporting period has become a mandatory condition.

It is clear that before doing this, it is necessary to pay contributions, confirming the periods of implementation or non-performance of activities, since only those periods for which insurance contributions have been paid to the fund budget are counted to confirm the insurance period.

To fill out a personalized accounting document, you need to download the “Enter DPU” software package on the fund’s website, fill out form PU-3 “Individual information” indicating the periods of implementation and non-implementation of activities and the amounts of paid contributions, print, sign the document and bring it to the fund’s authority on place of registration.

For payers who have an electronic digital signature, namely the GosSUOK key and the attribute certificate for it (Republican Certification Center of the State Public Key Management System), it will be possible, in cases of paying contributions for the entire year, to submit a personalized accounting form without coming to the district department of the fund. To do this, you need to register on the corporate portal of Fund 2.0, go to your personal account, confirm the information generated taking into account the amount paid for the entire period (1281 rubles), sign an electronic signature and submit it to the fund body.

Individual entrepreneurs, notaries and lawyers who did not pay contributions to the fund budget due to the availability of benefits throughout the year, which were mentioned earlier (except for those who had the right to child care benefits under the age of three years), personalized documents no accounting is provided.

If necessary, you can contact the fund authority at the place of registration, where specialists will give advice on the correct calculation, payment of contributions and the preparation of personalized accounting documents.

The same procedure for confirming periods of performance or non-performance of activities is provided for self-employed persons, only they will submit personalized accounting documents for 2019 in 2020, since they acquired the right to pay only from 2019
of the year.

– Will periods for which contributions have not been paid be included in the length of service for calculating a pension?

– These periods will not be taken into account. After all, today the right to a labor pension comes with 17 years of insurance experience, and by 2025 it is necessary to have at least 20 years of insurance experience. In the absence of a minimum insurance period, a person will be assigned a social pension (50 percent of BPM-214.21 = 107.1 rubles). In the Gomel region, about 700 people receive a social pension upon reaching retirement age, of which 72 percent are women (692 people, of which 189 are men and 505 are women). In the country as a whole - about 3.6 thousand people.

"The deadline for paying contributions remains the same - no later than March 1 of the year following the reporting year, but they can be paid during the reporting year (monthly, quarterly). And for 2018 contributions must be paid no later than March 1, 2019. Today the possibility of making payments has already been implemented to the fund’s budget through the “Calculation” system of the unified settlement and information space (ERIP).

N It is necessary to understand that if this category pays contributions to the Social Security Fund only in the minimum amount, that is, pays from the minimum wage, then in the future they will only have to rely on the minimum labor pension (216 rubles).

I would like to draw the attention of entrepreneurs that the information provided about the periods of implementation or non-implementation of activities will be verified with information from the information resources of republican government bodies, including through the Unified State Register of Legal Entities and Individual Entrepreneurs, with databases of tax authorities, and information from banks. If the fund authorities identify periods for which mandatory insurance contributions have not been paid, the amount of such contributions will be subject to recalculation and collection in the manner prescribed by law.

– How will the fund’s bodies collect the debt?

– The fund’s bodies are given the right, in cases of non-payment or incomplete payment of mandatory insurance premiums and other payments by payers of mandatory insurance contributions to the fund’s budget, to suspend transactions of payers not only on current (settlement) bank accounts, but also on electronic wallets, as well as to collect debt from accounts, electronic wallets based on the decision of an official of the fund body in an indisputable manner.

It also establishes the duty of the payer, in cases where payers receive funds for wages when there is a bank resolution to suspend transactions on accounts or receive such funds from accounts with a special operating regime, to coordinate with the fund authorities a certificate stating that there are no obligations to transfer payments to the fund budget.

The fund's bodies will conduct active awareness-raising work among citizens about the need to form an insurance record and the existing rights of individuals in the state social insurance system.

All individual entrepreneurs operating their activities are required to pay insurance premiums in accordance with the law. Mandatory insurance contributions are: pension and social insurance, which are paid to the social protection fund (SPF).

Who pays the fees?

Everyone pays except the following individual entrepreneurs:

• engaged in business and in an employment relationship at the same time
• receiving a pension
• receiving higher, secondary specialized and technical types of education in full-time education
• eligible for child care benefits under the age of 3 years.

Attention!

Previously, foreign citizens and stateless persons registered as individual entrepreneurs on the territory of the Republic of Belarus were also exempt from mandatory tax payment. But now, in accordance with Presidential Decree No. 2015 dated December 31, 2015, these persons are required to pay contributions on a general basis.

Also, if an individual entrepreneur attracts workers, then he pays both for himself and for the employee without fail.

What do the fees include?

Types of mandatory contributions

Pension insurance, which includes:

• insurance in case of reaching retirement age
• disability insurance
• survivors insurance

Social insurance, including:

• Temporary disability
• pregnancy and childbirth
• child care under 3 years of age
• providing one day off from work per month to a parent raising a disabled child under 18 years of age
• death of the insured or death of a family member

Amount and calculation of contributions

The amount of contributions is determined from the income of the entrepreneur received over the past year. Moreover, the amount of such contributions should not be less than the amount of the minimum wage ( 330 rubles), established by law, taking into account indexation.

Mandatory contributions amount to 35% (29% pension insurance, 6% social) of the minimum wage, which means 35% * 305 rubles = 115.5 rubles amount of contributions for 1 month.

Due date for payment of the fee

A single deadline has been established for the payment of compulsory insurance contributions - no later than March 1 the year following the reporting year. For example, before March 1, 2020, you need to pay the fee for the entire 2019.

IN 2019 year, the total amount of contributions, maintaining the current minimum wage, will be 1386 rub.(115.5 rubles per month). Decree No. 500 also provides for the opportunity to pay contributions throughout the reporting year.

How to pay if the entrepreneur’s activities are not carried out?

If you are registered in the state register of legal entities and individual entrepreneurs, but for some reason you do not carry out activities (for example, you worked for 3 months, and then temporarily for 2 months you do not carry out activities due to economic problems or there are few clients and use the services very rarely), then you are still obliged to transfer mandatory contributions to the social protection fund for all periods. That is, even if you did not carry out activities for one year and 2 months, you will have to pay a fee.

However, there are cases when an entrepreneur does not pay contributions for a certain period. Mandatory insurance contributions are not paid to the social protection fund in cases provided for clause 20 of the regulation on liquidation (termination of activities) of business entities, namely, in cases:

• undergoing compulsory or alternative service
• stay in institutions of the penitentiary system
• stay in pre-trial detention centers of state security agencies
• issuing a sentence to an individual entrepreneur related to deprivation of the right to engage in entrepreneurial activity
• other cases provided for by legislative acts

Notaries, lawyers and individual entrepreneurs were allowed to make insurance contributions to the Social Security Fund according to a new scheme - in proportion to the time worked. Changes were also introduced for self-employed Belarusians - they were allowed, if they wish, to make contributions to the fund and provide themselves with a labor pension. Finance.tut.by looked into what changes were made for Belarusians regarding contributions to the Social Security Fund.

How will individual entrepreneurs and the self-employed “accrue” insurance experience?

The insurance work experience, which is taken into account for assigning a labor pension, includes only those periods of entrepreneurial, creative and other activities during which contributions to the Social Security Fund were paid.

Accordingly, periods for which contributions have not been paid or are paid at a rate below the minimum amount will not be counted toward the length of service or will be counted in proportion to the amount of contributions paid, the FSZN notes.

Experts give an example. The minimum wage in 2018 was 305 rubles. Accordingly, the minimum payment for an individual entrepreneur when carrying out activities for a whole month will be 106.75 rubles per month (35% of the minimum wage), for a self-employed person - 88.45 rubles (29%). An individual entrepreneur transferred 53.4 rubles to the fund’s budget per month, a self-employed person transferred 44.23 rubles. Only 15 days will be counted towards their insurance period for granting a pension.

At the same time, it is necessary to take into account such a nuance that if an individual entrepreneur does not develop the minimum insurance period, then he will only be able to apply for a social pension, which is assigned to men upon reaching the age of 65 years, and to women - 60 years.

From January 2019, the minimum insurance period for assigning a pension will increase to 17 years (increases annually by 6 months, and by 2025 it should be 20 years).

You can check your insurance experience for the period starting from January 1, 2003 by contacting the Fund authorities for an extract from your individual personal account. Such statements are issued free of charge.

What amounts of insurance premiums must an individual entrepreneur pay?

At the same time, the norm that establishes the minimum amount to be paid for periods of business activity remains unchanged.

The minimum amount of mandatory insurance contributions for individual entrepreneurs for 2018 is 1,281 rubles (106.75 rubles per month).

At the same time, for 2019, the total amount of contributions, while maintaining the current minimum wage, will be 1,386 rubles (115.5 rubles per month). If the individual entrepreneur does not work for some time, that is, he uses the right “if you don’t work, you don’t pay,” then the amount will decrease.

But entrepreneurs and self-employed people need to take into account an important point. If you pay contributions to the Social Security Fund at the lower level, that is, pay from the minimum wage, then in this case you need to be prepared for small amounts of payments when you retire.

According to statistics, most individual entrepreneurs pay contributions at the lower limit and end up receiving small payments during their well-deserved retirement. As a result, they receive small pensions.

What contributions do self-employed people need to pay to receive a pension?

Self-employed Belarusians who were allowed to pay contributions to the Social Security Fund and earn a labor pension can do this on a voluntary basis. But if they want to secure their pension, they must make contributions no less than the minimum wage.

Let us remind you that from January 1, the minimum wage in Belarus increased to 330 rubles. That is, the monthly insurance premium for a self-employed person this year will be 95.7 rubles (29% of the minimum wage). For the year it will be 1,148.4 rubles. In this case, contributions can be paid either for a month or for the entire year at once.

Previously, self-employed Belarusians could not make contributions to the Social Security Fund, and, accordingly, count on neither sick leave nor a pension. This issue has become even more pressing since October last year, when a presidential decree came into effect expanding the list of activities for which individuals do not need to register as individual entrepreneurs, subject to paying a single tax.

A complete list of activities that are not considered entrepreneurial and fall under self-employment can be found in the Civil Code (Article 1).

How will they check that the IP is not working?

To check whether an individual entrepreneur really does not work, and accordingly may not pay insurance premiums, fund specialists will be able to use, among other things, data from the unified state register of legal entities and individual entrepreneurs (periods of suspension of activities in cases provided for by legislative acts), as well as from the tax database ( tax payment information).

FSZN specialists will also be able to request information from banks about the movement of funds in current accounts.

It will not be possible to mislead the bodies of the Social Protection Fund, since the information on work periods provided by these categories of payers will subsequently be verified with other government bodies, the Federal Social Protection Fund explains. - An individual entrepreneur, when submitting personalized (individual) accounting information, will have to independently indicate only those periods in which he carried out activities. Subsequently, this information will be verified with data from other government bodies.

Will the deadline for paying contributions to the Social Security Fund change for individual entrepreneurs?

The deadline for paying contributions to the Social Security Fund for individual entrepreneurs remains the same - no later than March 1 of the year following the reporting year. That is, contributions for 2018 must be paid no later than March 1 of this year.

At the same time, the presidential decree provides for the payment of contributions to the fund throughout the reporting year.

Which individual entrepreneur can avoid paying contributions to the Social Security Fund even if he works?

The list of individual entrepreneurs who can voluntarily pay contributions to the Social Security Fund remains the same.

These include those who have a day job; owners of property (participants, members, founders) of legal entities and performing the functions of managers of these legal entities; pension recipients; those who are entitled to child care benefits under 3 years of age; receiving vocational, secondary specialized, higher education full-time.

What other innovations await Belarusians?

Presidential Decree No. 500 allows for the collection of debts of payers of contributions to the Social Security Fund from electronic wallets. Before the changes, these funds were untouchable.

Presidential Decree No. 500 also regulated the issues of ensuring the rights and guarantees in the field of state social insurance of persons working in foreign organizations on the territory of Belarus, and citizens who were acquitted by the court and criminal prosecution against whom was terminated.

“In addition, the document adjusts certain norms of legislative acts taking into account law enforcement practice, as well as in order to bring them into line with the changes that have occurred in the legislation,” the presidential press service noted earlier.

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Source: Infa-Kur'er

How much does a self-employed person need to pay to the Social Security Fund?

Decree No. 337, recently adopted by the President, expanded to 30 the list of types of activities that individuals can engage in without registering as an individual entrepreneur. Now, in order to chop firewood, cut hair and do manicures at home, repair computers and make websites, install stoves, repair shoes and watches, it is enough to notify the tax authorities about the start of the activity and pay taxes (once a year) before the start of its implementation.

However, types of activities that do not require opening an individual entrepreneur are currently not covered by social insurance. And to be eligible for a pension, you need to have an insurance period. How much does a self-employed Belarusian need to pay to the Social Security Fund in order to provide himself with at least a minimum pension in old age?

From January 1, 2017, the minimum wage in Belarus is 265 rubles. In order for a self-employed Belarusian to receive a minimum pension, it is necessary for 16 years (and by 2025 the insurance period will increase to 20 years) every year until March 1 to pay 35% (29% for pension insurance and 6% for social insurance) of the minimum wages set by the state. That is, 1113 rubles per year. You can pay either in a one-time payment or monthly.

“If, for example, a craftsman registers with the Social Protection Fund and pays insurance premiums, he acquires the right to receive a pension in the future. If the craftsman has not registered with the fund and does not have insurance experience, then he will not have the right to a labor pension. He can only be assigned social pension. From August 1, 2017, the cost of living budget is 197 rubles 57 kopecks. The minimum old-age pension, taking into account additional payments, is 174 rubles 61 kopecks. The social pension is granted to women at the age of 60, and to men at 65. The pension amount is 50% of the subsistence level budget. And today it’s a little less than 100 rubles,” explained Valery Kovalkov, Deputy Minister of Labor and Social Protection.

Source: Infa-Kur'er

Who can now be self-employed

Decree No. 337, signed by the president on September 19, creates additional conditions for self-employment in the country and promotes the development of entrepreneurship. According to it, as of October 19, many types of activities will be possible to engage in without registering as an individual entrepreneur or legal entity.

The list of types of economic activities that Belarusians can engage in without registering themselves as individual entrepreneurs, provided they pay a single tax, includes:

• sale of self-made bakery, confectionery and culinary products,
• provision of places for short-term accommodation (residential or garden house, dacha),
• repair work on watches, shoes,
• repair and restoration, including reupholstery of furniture from customer materials,
• tailoring (including hats),
• tuning musical instruments,
• sawing wood,
• cargo loading,
• laying stoves and fireplaces,
• performing finishing works,
• decoration (decoration) of cars,
• provision of website development services,
• maintenance of computer and peripheral equipment,
• provision of services for the design of premises, interior design, furniture, clothing and footwear, graphic design,
• provision of hairdressing and cosmetic services.

The list legalizes those types of activities that today are actually carried out by individuals at home, for example, hairdressing services, or can be carried out in such conditions without the threat of harm to both individual citizens and society as a whole, according to the explanation to the decree.

To engage in such types of activities, you need to write an application (in any form) to the local tax office. After that, pay a single tax - and you can start working.

Source: BelTA

What taxes will be charged to self-employed people in different cities?

The base rates of the single tax for types of activities that citizens have the right to engage in without registering as individual entrepreneurs (according to Decree No. 337) are differentiated by type of settlement. According to Tatyana Putrik, head of the individual tax department of the Ministry of Taxes and Duties, the decree defines the range of base rates of the single tax for each type of activity. At the same time, base rates differ depending on the place of residence and work of a self-employed person.

For example, Minsk, the Minsk region and regional centers have their own range of rates, while rural areas have their own. Regional Councils of Deputies and the Minsk City Council must establish a specific single tax rate for each type of activity within the range of base rates established by the document by October 19.

The tax payment mechanism will work like this. A person who wishes to work as a self-employed person will need to submit a tax notice to his tax office before starting this work about what exactly he will be doing and for how long. The tax authority will calculate a single tax that will have to be paid to the budget, after which the citizen can start working. Since he does not need to register as an individual entrepreneur, there is no obligation to keep records or provide any reporting to the tax office.

Insurance contributions to the Social Security Fund- These are regularly paid, mandatory deductions from wages and other similar income. From the amounts of these contributions, sick leave and other social benefits are financed. The procedure for calculating and paying insurance premiums is regulated by the current legislation of the Republic of Belarus. In particular, this procedure is prescribed in the Law of the Republic of Belarus “On compulsory insurance contributions to the Social Protection Fund of the Ministry of Labor and Social Protection of the Republic of Belarus” dated February 29, 1996. The same document provides basic definitions, identifies a list of persons directly related to the operation of the Law, and spells out their duties and responsibilities for failure to comply with the Law. Information on mandatory insurance contributions can also be found on the website of the Republic of Belarus www.ssf.gov.by.

The obligation to pay insurance premiums rests with:

• Employers;
• Employees;
• Individuals paying their own contributions;
• Belarusian Republican Unitary Insurance Enterprise "Belgosstrakh".

The Law considers the following to be employers:

• Legal entities of all organizational forms, individual entrepreneurs, notaries, lawyers and individuals entering into labor and civil law contracts with employees;
• Organizations that provide employment based on membership.

The law contains the concept of mandatory insurance contributions. This is their minimum amount, calculated as a percentage of income. In addition, there is an “absolute minimum” of contributions, which is calculated according to the general principle from the value. A maximum limitation also exists: until 01/01/2015, four times the amount for the month preceding the month for which contributions to the Fund were paid; from 01/01/2015, five times the average salary was established.

Some types of income are not a source of payment of contributions to the Social Security Fund. Their list was approved by Resolution No. 115 of the Council of Ministers of the Republic of Belarus dated January 25, 1999, with subsequent additions and changes.

Mandatory insurance premiums according to their purpose are divided into:

• Contributions to pension insurance - 29%;
• Social insurance contributions - 6%.

The amount of mandatory pension contributions is determined by law and varies depending on the category of the enterprise. Currently such deductions are:

• For employers producing agricultural products, if its share is more than half of total production - 25% of accrued wages;
• For associations of disabled people, gardening partnerships, consumer cooperatives and similar organizations - 5%;
• For all employers not included in the two categories above - 28%;
• For employees - 1%, regardless of employer category.

In practice, employee contributions are deducted from wages, and are paid together with contributions withheld from employers.

Pension insurance payments are not accrued on the salaries of employees with disabilities of groups I and II.

Mandatory social insurance contributions amount to 6% of accrued wages. Their payment falls entirely on employers, regardless of the type of activity, organizational form and other circumstances.

The system for regulating the amount of compulsory insurance contributions of individual entrepreneurs deserves special mention.

To calculate such payments, they should be made according to the general system based on the national value. For 2019, the contribution amount for 12 months was 1,386 rubles It is easy to calculate that this value is obtained by adding 35% deductions (29%- pension and 6% - social insurance) from the amounts of minimum wages in the corresponding months. The entrepreneur has the right to independently increase the amount of payments. Due to this, future pension payments should increase. However, in the absence of a funded pension system, few people agree to pay more than necessary.

The deadlines for paying compulsory insurance premiums are also regulated at the legislative level:

• When working on a work basis, the due date for payment of contributions is the date of payment of wages;
• When working under civil contracts, the moment of payment of remuneration under them. But no later than the salary payment day for the previous month.
• Small commercial organizations (with an average payroll of up to 100 people) are allowed to pay contributions once a quarter, no later than the established date for payment of salaries for the last month of the quarter;
• Upon appointment, the employer pays contributions within 5 days from the date the employee submits the relevant application;
• For individual entrepreneurs, the deadline for mandatory payment of contributions is March 1 of the year following the reporting year.

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