The proposal to raise the tax for self-employed Russians from 4-6% to 13% raises legitimate questions about the logic of experimenting with professional income taxation. The goal of such experiments is typically to bring entrepreneurial activity out of the shadows, yet critics worry that a steep rate hike could deter small business efforts rather than encourage them. This concern was voiced by Russian Senator Olga Epifanova in an interview with socialbites.ca, underscoring a broader debate about how best to balance incentives for self-employment with the need for social protections.
Epifanova emphasized that continuing the current experiment makes discussions about higher taxes moot unless social guarantees for the self-employed are solidly in place. She noted that any tax increase should be paired with concrete measures that secure social benefits for freelancers and independent workers. In her view, without credible social protections, shifting the tax burden upward risks simply pushing more people further into informal work or off the official radar. At the same time, some experts have proposed introducing pension contributions for the self-employed even within the existing tax regime, arguing that future security for freelancers should be woven into the system as a standard option rather than a discretionary add-on.
Under current regulations, two tax rates apply to self-employed individuals: 4% when services are provided or goods are sold to private individuals, and 6% when the transactions involve organizations or legal entities. Social insurance and work experience credits accrue when a person contributes to the Social Fund. Traditionally, this has been framed as the employer’s responsibility within typical labor relationships. For freelancers who operate under a contract with a GPC and do not mix their activities with formal employment, service length and pension eligibility can be affected by their choice to contribute to social programs on their own. If a self-employed person seeks an insurance pension, they can voluntarily join broader retirement insurance and make contributions directly to the relevant fund. Stakeholders are watching closely to see how these choices will influence long-term benefit accrual and the overall credibility of the freelancing framework in Russia.
Legislation currently states that the freelancer tax regime will not be altered before the end of 2028. In early 2024, Russia’s Finance Minister Anton Siluanov confirmed that the tax regime for freelancers would remain stable through 2028. Anastasia Ryazantseva, who heads tax support for the Solar Staff service that handles project-based contractor arrangements, told socialbites.ca that while officials have not formally announced any tax increase for freelancers, the topic remains a subject of public discussion. Analysts suggest that the absence of official confirmation does not quell concerns about potential reforms, and industry voices continue to weigh in on the potential consequences for small businesses, gig workers, and the broader economy.
Historical context matters in this discussion. Previously, Russian companies consistently monitored staff turnover as a key indicator of the labor market’s health and the effectiveness of incentive structures for independent workers. The ongoing debate over freelancer taxation reflects wider questions about how to cultivate a more formal, accountable freelancing ecosystem without stifling entrepreneurship. Observers argue that any policy shift should be paired with transparent timelines, clear social guarantees, and a credible plan for pension and social protection that can withstand economic pressures and administrative realities. The practical outcome for freelancers, gig platforms, and tax authorities will hinge on whether reforms advance inclusion, security, and fair competition across both individual and corporate clients. [Citation: Socialbites.ca interview with Olga Epifanova] [Citation: Solar Staff tax support leadership commentary] [Citation: Finance Ministry statements]