Review of Best Practices in Self-Employment Taxation

Elena Smirnova (), Igor Okhrimenko and Aleksandra Zakharova
Additional contact information
Elena Smirnova: Financial University under the Government of the Russian Federation
Igor Okhrimenko: Financial University under the Government of the Russian Federation
Aleksandra Zakharova: State University of Management

Public Organization Review, 2024, vol. 24, issue 1, No 15, 299-314

Abstract: Abstract The rapid spread of freelancing as a form of employment requires the development of an optimal system of taxation of the self-employed population. When dealing with new types of commercial activities and the income received as a result of the implementation of such activities, the legislation often does not have time to adapt to new rapidly developing business areas. Moreover, legislative regulation often hinders the development of such areas and creates a lot of inconvenience for the subjects of their activities. This paper examines the level of satisfaction of freelancers with the new system of taxation and the tax rate for the self-employed workers in the Russian Federation. The issue is considered against the background of corresponding foreign practices. The research shows that most of the freelancers surveyed believe that the current tax rate is too high. Latter was introduced in 2021, under the special tax regime for the self-employed people. In order to avoid potential tax evasion, it is recommended to review the current approach to taxation and possibly reduce professional income tax. Also, one of the recommendations is to conduct regular tax audits, since the new taxation system for freelancers significantly reduces income tax, and unscrupulous entrepreneurs can take advantage of this by entering into a civil law contract with employees and losing the status of an employer.

Keywords: Freelance; Self-employment; Tax rate; Tax regime; Taxation policies (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11115-022-00604-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:porgrv:v:24:y:2024:i:1:d:10.1007_s11115-022-00604-1

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11115/PS2

DOI: 10.1007/s11115-022-00604-1

Access Statistics for this article

Public Organization Review is currently edited by Ali Farazmand

More articles in Public Organization Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().