Policy Notes on Tax Relief for Self-Employed and the Digital Ruble Considerations

Anton Siluanov, who leads the Ministry of Finance in the Russian Federation, explained in a recent interview that there are no current plans to extend property ownership rights or social tax relief to self-employed individuals. In the discussion, which was conducted with a financial blogger, Siluanov clarified that tax benefits are already available to individual entrepreneurs who pay personal income tax, and voiced no intent to broaden these benefits to those operating under simplified taxation regimes. He emphasized that there are low, defined tax rates for these groups and that extending personal income tax relief to special regimes would not be pursued in the near term. This stance reflects a careful calibration of tax policy among different forms of self-employment, with attention to how tax incentives affect formal versus informal work, revenue collection, and the broader fiscal framework. Siluanov’s comments underscore a distinction between those who submit to personal income tax and those who operate under alternative tax schemes, signaling a preference for maintaining current incentives without expanding them to cover additional self-employed categories. The dialogue also touched on the administration’s approach to tax relief as part of a wider tax structure, where the government seeks to balance revenue stability with targeted support for business activities that align with established tax rules and reporting obligations. In this context, the minister reiterated that the existing relief mechanisms are designed to reward compliance with personal income tax requirements, while those who fall under simplified tax systems remain outside the scope of these particular benefits. The discussion highlights ongoing considerations about how to measure and adjust incentives as the economy evolves, ensuring they remain consistent with fiscal goals and administrative practicality. The minister also indicated that the tax regime should not be overly permissive for every form of self-employment, but instead should reward clear tax compliance and transparent reporting, which are central to accurate revenue forecasting and budget planning. The remarks reflect an ongoing policy conversation about how best to structure tax relief in a way that sustains state revenues while supporting individuals who contribute to the economy under well-defined rules. In parallel, Siluanov raised the topic of modernizing public payroll practices, noting that salaries for government staff may in the future be issued in digital currency form. While not a definite plan, the possibility of converting official earnings to a digital ruble is being explored as part of a broader assessment of how digital payments can streamline government operations and reduce processing costs. If implemented, such a change would require careful consideration of monetary policy, financial stability, and the practical implications for public sector payroll management. The minister suggested that the digital ruble could potentially play a role in international trade agreements should Russia move away from reliance on the euro and the dollar. He pointed to the growing trend of several countries issuing their own sovereign digital currencies and observed that digital financial instruments are increasingly integrated into cross-border commerce. This evolving landscape raises questions about currency sovereignty, settlement mechanisms, and the readiness of domestic institutions to support digital transactions at scale. While the discussion did not commit to a concrete timetable, it indicated a forward-looking posture toward the digitization of payments and the strategic use of new monetary tools to enhance financial autonomy and reduce dependency on traditional reserve currencies. These developments would align with broader efforts to modernize the financial system, improve transaction efficiency, and adapt to shifts in global trade and monetary arrangements. Overall, the exchanges point to a cautious yet proactive stance on two fronts: maintaining disciplined tax policy that rewards compliance and clarity in reporting, while simultaneously examining the potential role of digital currencies in government services and international economic partnerships. The balance between fiscal prudence and innovation appears central to the administration’s long-term strategy, aiming to cultivate a stable revenue base while exploring modern technologies that could support more streamlined public finance operations and potential shifts in international payment standards.