Starting from 2025, significant updates are coming to the income statements issued for employees across Russia, as the country transitions from the traditional 2-NDFL form to new regulatory frameworks dictated by the Federal Tax Service (FNS). This shift, aimed at both streamlining administrative processes and enhancing compliance, is set to simplify how employers report employee income and taxes.
According to the recent guidance, the income statement for employees, which effectively replaces the 2-NDFL form from 2025 onwards, must be formatted according to the provisions laid out in Appendix 4 of the FNS order dated September 19, 2023, and revised as of January 9, 2024. Specifically, this transition reflects the government’s effort to modernize tax documentation, ensuring clarity and accessibility for all stakeholders involved.
Employers are now required to generate these new income statements upon request by employees, showcasing the reported income along with the calculated and withheld taxes. Notably, the revised form omits the previous line detailing the tax remittance, reflecting updated reporting standards. The essence of these changes lies not just in compliance, but also in fostering transparency and facilitating easier access to important financial documentation.
Legal experts underline the significance of these updates: "Справка о доходах для работника, заменяющая 2-НДФЛ, должна быть оформлена по форме из приложения 4 к приказу ФНС от 19.09.2023 № ЕД-7-11/649@ в редакции приказа от 09.01.2024 № ЕД-7-11/1@," (translated: "The income statement for the employee, replacing the 2-NDFL, must be formatted according to form No. 4 from the FNS Order dated September 19, 2023, No. EД-7-11/649@ amended by the order dated January 9, 2024, No. EД-7-11/1@.") This directive highlights the necessity for employers to be well-versed and compliant with the new format to avoid potential discrepancies or penalties.
Employers have three working days from receiving the employee’s request to issue the income statement. This timeframe ensures efficiency and meets the immediate needs of employees, particularly when they require proof of income for loans, housing applications, or tax declarations. The guidelines also extend the issuing deadline to ten working days for other income recipients, with the possibility of granting extensions upon notification to the concerned individual if additional time is necessary.
An important note for employers is the requirement to issue these statements at the end of employment, regardless of whether the employee has formally requested it. Failure to comply could result in administrative repercussions, reinforcing the need for diligence and adherence to the new rules. "Справка о доходах и суммах налога физического лица надо выдать в последний день его работы без заявления," (translated: "The certificate of income and amounts of personal tax must be issued on the last day of work without any request.") signifies this obligation clearly.
The scope of who can request these income statements is also widening. Current employees, former employees, and even those who have received payment from employer-employee agreements can ask for these statements. This inclusive approach ensures fairness and allows for comprehensive access to necessary financial documentation regardless of employment status.
Background on these regulatory changes reveals the government's intention to not only reduce bureaucratic hurdles but to also empower employees by making it easier for them to obtain proof of income when needed. The overall framework promotes trust and efficiency, easing the administrative burden on HR departments throughout various organizations.
Alongside these updates, employers must remain vigilant about the proper execution of these requirements, as they reflect broader shifts within the Russian compliance system. By adopting these regulations, employers not only position themselves to minimize the risk of errors but also contribute to the modernization of Russia’s fiscal operations.
With the new income statement formats rolling out, both employers and employees will need to adapt to these changes and embrace them. The intent is to create a more cohesive and structured approach to income reporting, coinciding with broader educational efforts from the FNS to assist employers through this transition.
These alterations herald substantial administrative transformations for businesses across Russia. By embracing the new income statement format and adhering to compliance standards, employers can navigate the changing tax environment more smoothly. Therefore, as 2025 approaches, it is imperative for businesses to prepare adequately, ensuring they meet these new requirements to serve their employees effectively.
