How to save on personal income tax and optimize other taxes.

How to legally reduce payroll taxes. Algorithm using the shift method. Correct and unacceptable splitting of business for the purpose of tax optimization.

In 2022, the debt of Russian companies and individual entrepreneurs in taxes and contributions to the budget increased by 541 billion rubles and reached 2.5 trillion. Nevertheless, the collection of VAT and income tax, though slightly, but increased – by 3.7% and 4.5% in the general economic crisis. But the dynamics of personal income tax receipts was significantly higher – 17.3%, which is higher than the formal “increase” in incomes of citizens (12.2%).

The authorities of the Russian Federation do not hide their plans to track and enforce the legalization of shadow incomes. Although a lot of problems have already been created for hidden pay schemes: there is no place to take cash for envelope salaries, especially if the proceeds come by bank transfer. It is unprofitable for a business to hire a large number of employees – personal income tax and insurance premiums eat up or drastically reduce profits.

One of the effective tools for reducing payroll taxes is shift work. It applies to many industries. Condition – the employee cannot return to his place of residence at the end of each working day. The savings algorithm using the watch is as follows. Most of the earnings can be made out in the form of a shift allowance, which is not taxed. The rest is paid in salaries at a level slightly above the minimum wage. Such optimization at times saves personal income tax and insurance premiums. At the same time, the method is “white” and legal. All steps of such optimization should be documented to justify the quality, otherwise there will be checks and additional charges.

Shift allowances are also used in case of legal splitting of a business to minimize tax payments. In addition, part of the remuneration can be issued through individual entrepreneurs and compensation packages. The most effective is the splitting of a group of companies into new legal entities, individual entrepreneurs on a patent and self-employed, among which employees, revenue streams and functions performed are distributed. Some should be engaged in conditional production, the second in trade, and the third in delivery, services, etc. By the way, a self-employed person is entitled to a personal income tax deduction if he receives income that is not related to official work.

Competent legal registration is important, non-affiliation of new structures, franchising and trademarks can be used. Tax authorities pay less attention to DOS, and more to the simplified tax system. Even if an account is blocked in one company, others will remain working.

However, many legal entities make gross mistakes when crushing, which results in additional charges of large amounts of fines. As an example, all organizations are tax registered in one or two days, at one legal address and with a single applicant. They carry out identical activities. The new managers are employees of the parent company, which is almost the only customer. Settlement accounts in one bank, powers of attorney for their disposal issued to the accountants of the main company. The main mistake is that splitting does not carry a business purpose at all, except for non-payment of VAT and income tax.

If, after an on-site inspection, one structure ceases to exist, this is not a problem. Moreover, in 2022 the number of tax audits increased by more than 30%. There were almost 10,200 of them in total. The average amount of additional charges was 48 million rubles. Last year, 686 million were additionally charged from legal entities and individual entrepreneurs, which is a record.

In conclusion, let’s sum up the results, which are bleak. A secret black list has been launched in the Russian Federation – a register of illegal beneficiaries. The entrepreneur cannot find out whether he got into the register or not. All legal entities and individual entrepreneurs must open the UNS, which will bring them closer to automatic tax collection. The country may also adopt a law according to which company funds can be arrested before the start of a tax audit. Arrest on account of possible arrears and fines, followed by on-site and desk audits and additional charges. There will be automatic subsidiary liability for debts, it will become difficult to write off debts through bankruptcy.