Digital Tax Administration of the Self-employed in Russia: Approach, Implementation and Results Implementing the new tax regime and self-employed digital tax administration in Russia helped more than 5 million taxpayers to step out of the shadow economy after 3 years info@digitaltaxtech.com taxtech.digital Self-employment and Informal (Shadow) Employment Self-employment1 Refers to the subcategory of “independent workers without employees” and to “own- account workers” Does not include employers (independent workers with employees). Informal (Shadow) Employment Workers without an employment contract Full and Partial Informal Employment: Full-time – employees perform the jobs at the main place of work without registration Partial – in addition to the main job, employees have a part-time job that is not formalized by an employment contract There is a steady increase in the number of informally employed and their average age 14.8 million were employed in the informal sector in Russia in 2019 (12.6 million in 2006), Rosstat Self-employment is a form of receiving remuneration directly from the customers, in contrast to hired work [1] Self-employed – ”an independent worker without employees" [2] Estimating the number of self- employed in the informal segment is very difficult The Threat of the Shadow Economy: The Transition from Formal to Informal Employment Shadow income, profit shifting, and concealment of income lead to a decrease in the tax base As a result, the tax burden on law-abiding taxpayers is growing. An imbalance in the tax burden leads to a loss of competitiveness of conscientious taxpayers, stimulating them to go into the shadows A growing share of the shadow economy Reduced tax base Decrease in the tax collection he Changing Role of Online Platforms and B2C / C2C e-Commerce in the Economy: Threats and Opportunities for the Tax Authorities Online platforms—non-residents and self-employed residents Online platforms can benefit from the informal employment of their B2B partners. Tax evasion increases the profits of the taxi driver, courier and online platform, which allows lower prices for end users to increase market share More and more people are participating in the C2C economy and using digital platforms as a primary or secondary source of income Uberization and online platforms are driving this change: they provide an easy way to attract and monetize customers Tax Administrations Many items to control Increasingly, personal income is moving out of the sight of the tax authorities Opportunities for cooperation between the tax authorities and digital platforms Online platforms make the transition from formal employment to informal work and self- employment easier. This increases the number of tax audit objects and makes the work of tax authorities more difficult Contact us for more details info@digitaltaxtech.com www.taxtech.digital

1. Trusted Global Tax Gap Advisor &
Digital Solution Provider for Tax
Administrations
Digital Tax Administration of the
Self-employed in Russia:
Approach, Implementation and
Results
Implementing the new tax regime and self-employed digital tax
administration in Russia helped more than 5 million taxpayers to
step out of the shadow economy after 3 years
info@digitaltaxtech.com
taxtech.digital
05.2022

2. Table of
Contents
2
Employment
Ecosystem
Economic
Developments and
New Threats to the
Tax Administration
Formal
Employment and
the Tax Burden of
Labor
Russia’s
Experiments in
Getting Self-
employed Out of
the Shadows
Key Principles of
the Special Tax
Regime for the
Self-employed
Implementation
and Results of the
Application of the
New Self-employed
Tax Regime in
Russia
«My Tax»
Application and
Tax Administration
Analytical System
Exhibits

3. Employment Ecosystem
Definitions and Structure
3

4. [1] International Labour Organization (ILO). Resolution I. Resolution concerning statistics of work, employment and labor underutilization [URL]
[2] International Labour Organization (ILO). SMALL MATTERS. Global evidence on the contribution to employment by the self-employed, micro-enterprises and SMEs //
International Labour Organization (ILO), 2019 [URL]
4
Employment Ecosystem
Population
in working
age
15-64 years as
defined by the
International
Labour
Organization
(ILO)
By time of
employment
Full time
Part time
Unemployed
By number of
places of work
Only at the main job
Combining 2 or more jobs
In relation to the
employer
Employees at the salary or civil
contract
Self-employed with the income from
the customers and without employees
By type of
employment
Formal employment (officially under
the contract with social contributions)
Informal employment (without
registration)
Employed is a person “at
work” who worked in a job for
at least one hour [1]
formal
employment
informal
employment
Employment
Self-
employment
Full-time or
part-time
employment
Combining
jobs
When the
economic
situation
changes, there is
a flow of
employment
between
segments

5. [1] International Labour Organization (ILO).
SMALL MATTERS. Global evidence on the contribution to employment by the self-employed, micro-enterprises and SMEs // International Labour Organization (ILO), 2019 [URL]
[2] Rosstat. People employed in the informal sector [URL]
5
Self-employment and Informal (Shadow) Employment
Self-employment1
Refers to the subcategory of “independent
workers without employees” and to “own-
account workers”
Does not include employers (independent
workers with employees).
Informal (Shadow) Employment
Workers without an employment contract
Full and Partial Informal Employment:
Full-time – employees perform the jobs at
the main place of work without registration
Partial – in addition to the main job,
employees have a part-time job that is not
formalized by an employment contract
There is a steady increase in the number of
informally employed and their average age
12,6 12,9
13,8
13,4
11,5
12,9
13,6
14,1 14,4
14,8
15,4
14,3 14,6 14,8
39
39
39
39 39
39 39 39
40
40
40
40
40 40
35
36
37
38
39
40
41
42
43
44
-
2
4
6
8
10
12
14
16
18
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
million
Number of people employed in the informal sector and
the average age in Russia, Rosstat 2006-20192
Всего Средний возраст, лет
Total, # Average Age, Years
Millions

6. Informal Employment by Industry in Russia, 2019
[2] Rosstat. Employed in the informal sector in 2019 [URL] 6
6,26%
4,634
3,29%
2,434
2,14%
1,587 2,10%
1,557
2,08%
1,539
1,37%
1,015 0,81%
0,599
0,71%
0,525 0,31%
0,23
0,18%
0,13
0,23%
0,169
0,16%
0,121
0,13%
0,096
0,06%
0,047
0,06%
0,042
0,05%
0,034
0,04%
0,026
0,02%
0,014
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
Thousands
Informally employed, as % of the total employed population In the informal and formal sectors Total, in thousands of people Informally employed, as % of the total employed population
14.8 million were employed in the informal
sector in Russia in 2019 (12.6 million in 2006),
Rosstat [1]
Trade: 4.6 million
Agriculture and forestry: 2.4 million
Construction: 1.6 million
Manufacturing: 1.6 million
Transportation: 1.5 million

7. [1] International Labour Organization ( ILO ).
SMALL MATTERS. Global evidence on the contribution to employment by the self-employed, micro-enterprises and SMEs // International Labour Organization (ILO), 2019 [URL]
[2] https://ru.wikipedia.org/wiki/Self-employment
[3] ILO modelled estimates and projections [URL]
7
Self-employment
Self-employment is a form of
receiving remuneration directly
from the customers, in contrast
to hired work [1]
Self-employed – ”an
independent worker without
employees" [2]
Estimating the number of self-
employed in the informal
segment is very difficult
1
10
100
1 000
10 000
100 000
1 000 000
2010 2011 2012 2013 2014 2015
2016 2017 2018 2019 2020 2021
Estimates of the number of self-employed by country 2010-21,
By million people (ILO) [3]

8. [1] As a share of the working population. Statista, International Labour Organization. Where People Are Self-Employed Around the World. statista.com/chart/18908/self-
employed-workers-by-country/
8
Percentage of self-employed/Independent in selected
countries in 2019 1
There is an inverse correlation
between the share of the self-
employment and GDP per Capita
In high-income countries, 12.2% of
workers are self-employed
Self-employment rises to 80.3% in
low-income countries
Shows prevalence of subsistence farming
Counts as self-employed people working
for free in their family business

9. Economic Developments and New
Threats to the
Tax Administration
9

10. The Threat of the Shadow Economy: The Transition from
Formal to Informal Employment
Shadow income, profit shifting, and
concealment of income lead to a decrease
in the tax base
As a result, the tax burden on law-abiding
taxpayers is growing.
An imbalance in the tax burden leads to a
loss of competitiveness of conscientious
taxpayers, stimulating them to go into the
shadows
A growing share of
the shadow
economy
Reduced tax base
Decrease in the tax
collection
A.L.Suslina , R.S.Leukhin. Fighting the Shadow Economy in Russia: Particular Aspects of Common Problems [URL] 10

11. [1] C2C stand for “Consumer 2 Consumer” - doing business between consumers 11
Systemic Impact of the Global Digital Platforms on the
Economy
Growth of Internet penetration, influence
of global digital platforms and B2C/ C2C
commerce 1
Online platforms benefit from informal
employment of partners to reduce prices
and increase profitability
The growing threat of global non-
resident digital platforms for the formal
employment and the tax collection
The unregistered work of international platforms—non-residents in conjunction with
self-employed residents (for example, taxi drivers) stimulates the growth of the
shadow economy and is a threat to the tax authorities

12. The Changing Role of Online Platforms and B2C / C2C e-Commerce in the
Economy: Threats and Opportunities for the Tax Authorities
Online platforms can benefit from the informal employment
of their B2B partners. Tax evasion increases the profits of
the taxi driver, courier and online platform, which allows
lower prices for end users to increase market share
More and more people are participating in the C2C economy
and using digital platforms as a primary or secondary
source of income
Uberization and online platforms are driving this change:
they provide an easy way to attract and monetize
customers
Many items to control
Increasingly, personal
income is moving out
of the sight of the tax
authorities
Opportunities for
cooperation between
the tax authorities and
digital platforms
Online platforms make the transition from formal employment to informal work and self-
employment easier. This increases the number of tax audit objects and makes the work of tax
authorities more difficult 12
Online platforms—non-residents and self-employed residents Tax Administrations

13. Growth of C2C Marketplaces During the COVID-19
pandemic1
Used goods volumes up in all categories
On horizontal sites (eBay, Kleinanzeigen,
Facebook Marketplace) and specialized
sites (Lithuanian Vinted for used fashion
items)
Millions of users during the quarantine
began to sell unwanted goods on the
Internet
As they developed, some sites began to
monetize their platforms by charging
buyers (Mercari, Vinted, wallapop)
C2C growth trend promises to be long-
term
[1] C2C e-commerce: Could a new business model sell more old goods? McKinsey, 09/23/2021 [URL]
[2] For sale announcements only
[3] Consumer products only
13
Number of ads on European C2C marketplaces (100 = Jan 2020)

14. Online Platforms—Non-residents in Conjunction with Self-
employed Residents: a Threat for a Tax Administration
Online platforms (non-residents) and
self-employed residents
Challenges of the
Tax Administration
An international taxi aggregator provides a service
in the country and receives a percentage of each
trip without paying local VAT. The driver receives
income that he does not report to the tax
authorities (NO)
A non-resident owns real estate and rents it out
through an international online platform. Platform
and non-resident income do not create tax revenue
An influential blogger on an international platform
(YouTube, Instagram) with millions of followers.
The platform and the blogger receive ad revenue
that is not reported to the tax authorities
An informal or self-employed seller in the market
does not issue a check to the buyer and does not
pay taxes on the proceeds.
Millions of individuals are objects of
control. Lack of motivation for the buyer to
demand a fiscal receipt from the seller
Many cash settlements and a very large
number of small transactions (average
check in the Russian Federation = 800
rubles / ~10 EUR)
Lack of motivation for international
platforms to include local taxes in the
check and declare income
There is no way to significantly increase
the number of inspectors for complete
control
14
Tax authorities should cooperate with digital platforms to localize their business on the territory of the state
and obtain information about their clients to form a tax base

15. 15
Other Influencing Factors Driving Change in the Economy
Economic crisises Pandemics Inflation
Lead to a decrease in real incomes and purchasing power
of the population and stimulate employment shift to the
shadow sectors of the economy and C2C-commerce

16. 16
Digital Tax Administration of Online Platforms and Self-
Employed: New Opportunities for the Tax Authorities
Localization of the business of online
platforms on the territory of the state and
obtaining information about their clients
to form a taxable base
Introduction of special tax regimes and
digital tax administration for online
platforms and the self-employed at the
national level
The goal is to simplify tax administration
and stimulate the legal activities of self-
employed and online platforms.
The application of these measures can reduce the number of informally employed
by 30-40% in 2-3 years and increase the tax base by 3-5 times

17. Formal Employment and the Tax
Burden of Labor
17

18. Types of Earned Income and Labor Taxes
Income
Labor income
Wages of hired workers Income of individuals
Personal Income Tax
Social Contributions
Income of the self-
employed and
entrepreneurs
Professional income of
individual entrepreneurs
and self-employed
Taxes and contributions
from individual
entrepreneurs
Taxes from Self-employed
Income from capital /
assets
Asset owners earn capital
income from their property
Self-employed and
individual entrepreneurs
earn by labor and by
owning assets
Source: International Labour Organization (ILO) [URL] 18

19. Formal Employment: the Level of Tax Burden of Labor in
Russia
The maximum tax burden on the wages of a formally
employed individual in the Russian Federation = 45% [1]
Tax on personal income (Chapter 23 of the Tax Code of
the Russian Federation)
Personal income tax: 13% or 650,000 rubles and 15% of
the sum of the tax bases if the amount of tax basis for the
period > 5 million rubles
Insurance premiums (Chapter 34 of the Tax Code of the
Russian Federation) within the established marginal base
• for compulsory pension insurance: 22%
• for compulsory social insurance: 2.9%
• for compulsory health insurance: 5.1%
[1] Tax Code of Russia 19
The tax burden on labor from the employee’s
wage:
From 43.00%
to 45%
The share of taxes & contributions from the
employee’s net wage ((1 + 0.22 + 0.051 +
0.029) / (1-0.13) -1) × 100%
49.43%
The tax burden on labor for the enterprise:
gross wage × (1 + 0.22 + 0.051 + 0.029) =
gross wage × 1.3
130.00%
The share of taxes & contributions from the
total payroll: (salary × 0.43) ÷ (salary × 1.3) ×
100%
33.08%

20. 8,1
8,1
10,8
11,7
12,9
13,6
14,8
15,9
16,2
16,3
21,5
22,9
23,7
26,3
26,6
36,6
0 5 10 15 20 25 30 35 40
Caribbean small states
Africa Eastern and Southern
South Asia
East Asia & Pacific
Least developed countries: UN…
Fragile and conflict affected situations
Latin America & Caribbean
Heavily indebted poor countries (HIPC)
Middle East & North Africa
World
Africa Western and Central
Europe & Central Asia
OECD members
European Union
Central Europe and the Baltics
Russian Federation
Labor tax and contributions in 2019, % of
commercial profit (World Bank) [1]
A Comparison of the Tax Burden on Labor in the World
20
The tax burden on labor by single worker without
children earning nation's average wage [2]
[1] World Bank, Labor tax and contributions (% of commercial profits) [URL]
[2] A Comparison of the Tax Burden on Labor in the OECD. Tax Foundation [URL]
https://taxfoundation.org/publications/comparison-tax-burden-labor-oecd/
Russia
~ 43%
Russia
36.6%

21. High tax burden
High rates of taxes on labor and
social contributions [1]
A large degree of
"overregulation" of the
economy Low quality of public
institutions and
corruption of
regulatory bodies
Low satisfaction with the quality of
public services and transparency in
the use of taxes
High
unemployment
The Main Reasons Why Economic Agents are Retairing in
the Shadows
The high tax burden on labor is one of the main reasons for the growth of the shadow
economy
[1] The fight against the shadow economy in Russia: particular aspects of general problems. A.L. Suslina, R.S. Leukhin // Financial journal / Financial journal №6 2016 [URL]
[2] Rosstat [URL]
21
Employed in the informal sector of the Russian Federation, as % of
the total number of employed in the industry sector, 2019 Rosstat
[2]
84,9
58
57,9
41,4
32
31,6
24,4
15,2
12,7
10,1
8,4
8,2
7,8
4
2,9
2,5
2
1,4
Wholesale trade and retail, vehicle repair
Agriculture, forestry, hunting, fishing/breeding
Construction
Processing industries
Transportation and Storage
Provision of other types of services
Hotel, Restaurant, Catering / Cafe
Prof., scientific and technical, admin. activities…
Health and social services
Information & Communication
Образование
Culture, sports, leisure and entertainment
Operations with real estate
Financial and insurance activities
Water supply & disposal, collection & disposal of…
Mining
Eelectricity, gas and steam; air conditioning
Other economic activities
Informally employed, as % of total employment in the sector

22. Government
transfer payments
19 360
29%
Income from work
in private
enterprises
19 280
29%
Income from work
in state enterprises
16 337
25%
Cash income from
domestic
production and
informal sector
3 611
5%
Help from relatives
and charity
2 968
5%
Income from work
in enterprises of
mixed ownership
2 093
3%
Natural income
from the home
production and the
informal sector
1 657
3%
Rental income from
personal property
327
1%
Income
from the
sale of
personal…
Dividends
76
0%
Другой
10 823
17%
58077
81%
3621; 5%
9207; 13%
1029; 1%
13857
19%
Employment in legal entities
Individual entrepreneurs, farmers and self-employed
Employed by individual enterpreneurs and farmers
Household work
Share of the Part-time/Supplementary Income
Number of people employed on the main and
additional places of work in Russia, 2019, thousand
people (Rosstat1)
Structure of basic and additional household incomes
in Russia in 2018, in Rubles per 1 month (HSE 2)
[1] Rosstat [URL]
[2] Russian Longitudinal Monitoring Survey - HSE (RLMS-HSE). Issue 10 [URL] [URL]
22
1758
Employed on the
main work 71 933
Employed on
the additional
work
1 758
2.5%
83% of income – wages and government transfers 3
5% of income – home production and informal employment

23. Russia’s Experiments in Getting
Self-employed Out of the Shadows
23

24. Total work
force
in Russia,
2018
6%-15% special tax regime for individual
enterpreneurs
13% personal income tax
43.3 million employees
Traditional tax control processes are often ineffective for auditing self-employed due to their large
number. Therefore, in 2019 the Federal Tax Service of Russia introduced a new special tax regime
for self-employed
24.4 million of unknown status
(incl. non-registered self-employed)
Self-employed must pay 13% income tax, but avoid
registration and reporting of their income
3.5 million individual
entrepreneurs
(with or without employees)
3.9 million officially unemployed
Do not pay income tax
75.1
million
Initially Unknown Status of 34% of Workforce in Russia
24

25. A Survey of Informally Employed in Russia
To create a simple and convenient tax regime for
the self-employed, a survey was conducted to
ascertain the incentives for legalization
The Federal Tax Service of Russia conducted a
survey of 9000 informally employed, earning
income through the digital platforms: taxi,
professional services and freelance
Survey Results:
76% are ready to legalize their income
67% would like the tax authorities to calculate the tax instead
of the mandatory filing of a tax return
70% want the tax rate to be less than 6%
More than 2 million potential taxpayers receive
income through:
Number of Respondents by Platforms
(N=9000)
PROFI.RU;
4200; 47%
Yandex Go
2700
30%
YouDo;
1300; 14%
FL.RU; 800
; 9%
25
Source: Federal Tax Service of Russia

26. An Experiment with Fiscal Holidays for Nannies and Tutors
in Russia
In 2017, fiscal holidays were introduced for nurses,
tutors, cleaners, and nannies for 3 years with the
planned extension of 1 year
These persons who submitted1 to their tax inspection a
special notice2, were exempted from paying personal
income tax on income from their activities3
0% personal income tax rate for
nurses, tutors, cleaners, and nannies
The notice must be filed in person in
the tax inspection (no distant
submission)
As a result, just ~4,000 people got
registered for the status throughout
the country
Taking into account the experience
gained, from January 1, 2019, a
special tax regime for the self-
employed was introduced in
Moscow, the Moscow and Kaluga
regions, as well as in Tatarstan
[1] Clause 7.3, article 83 of the Tax Code of the Russian Federation
[2] Appendix No. 1 to the Order of the Federal Tax Service of March 31, 2017 – No. ММВ-7-14 / 270@
[3] Clause 70, article 217 of the Tax Code of the Russian Federation
26

27. Key Principles of the Special Tax
Regime for the Self-employed
In accordance with the 422 Federal Law of Russia
27

28. The special tax regime for the
self-employed (SEs) in Russia
Goals
• Legalization of taxpayers who were in the shadows due
to complex tax procedures and lack of motivation to pay
taxes
• Reducing the burden on tax officials
• Growth in the number of taxpayers, the tax base and the
collection of tax on professional income of the self-
employed
Indicators
• Number of registered self-employed taxpayers
• The tax base
• Accrued taxes (“Professional Income Tax”)
• Amount of debt
Tasks
• The tax authorities are unable to carry out full-fledged
control work with millions of SEs
• It is necessary to create an attractive regime for the self-
registration of taxpayers 28

29. Principles of the Special Tax Regime for the Self-employed
29
5. Ability to
work with
legal
entities, incl.
foreign
•Allowing sales to legal entities
significantly expands the
scope of the tax and
simplifies the work of legal
entities with self-employed
4.
Motivation
for
legalization
•The taxpayer receives social
bonuses that depend on the
amount of taxes accrued,
which makes registration
profitable and increases the
motivation to use the regime
3. Minimum
tax period
•The minimum tax period is 1
month, which allows you not
to accumulate tax debt and
makes payment more
comfortable for the taxpayer
2.
Reasonable
tax rate
•The established tax rate is
reasonable in the
understanding of the taxpayer,
which allows him to agree
with the expediency of paying
taxes
1. Simplicity
and
transparency
•Self-employed pays taxes only
when it has income
From January 1, 2019, a special tax regime for the self-employed was introduced in Moscow, the Moscow and Kaluga regions, as
well as in Tatarstan. Since January 1, 2020, 19 more regions have joined the experiment, and since mid-2020 it has been expanded
to the whole country

30. Principles of the Special Tax Regime for the Self-employed
30
9. Online
communications
and technical
support for
taxpayers
• The system of technical support
and communication with
taxpayers creates a feeling of a
"live" system and that the tax
service helps to solve possible
problems
8. Simplified
registration
• A taxpayer can register and
register for tax within a few
minutes from a mobile
application without special
knowledge and additional funds
(does not require a qualified
electronic signature, CEP)
7. Automation of
tax calculation
and payment
• The ability to link and pay tax
with a bank card allows you to
reduce the automation of the
process and reduce
dependence on the actions of
the taxpayer
6. Ease of
reporting of the
income and
minimal
compliance
efforts
• Reflection of income is provided
by integration with partner
banks and automation of
income registration

31. Features of the Tax Regime for Self-employed in Russia
(422-Federal Law)
The tax base
Income from the sale of goods (works, services), with the
exception of income received under an employment contract
Tax rate
4% when selling goods (works, services) to individuals or
6% when selling goods (works, services) to legal entities and
individual entrepreneurs
How to become a taxpayer?
You can register as a taxpayer through a mobile application or
through the website of the tax authority
Frequency of tax payment Monthly. Payment occurs automatically after linking a bank card
Basic restrictions (example)
• by annual income (no more than 2.4 million rubles)
• no employees
Maintaining a tax accounting and reporting
by the taxpayer
Not required
The need to register as an individual
entrepreneur
Not required
Additional Benefits
Tax capital for professional development (tax bonus up to 10,000
rubles)
31

32. Implementation and Results of the
Application of the New Self-
employed Tax Regime in Russia
Approach, outcomes and partner ecosystem
32

33. The transition to a new tax regime for the self-employed carried the risks of breaking off labor
relations and reducing personal income tax and income from the social contributions. Therefore:
• Federal Tax Service of Russia (FTS) has established a 10-year timeframe for the project
• FTS has implemented a pilot project in 4 regions prior to the nationwide rollout
Implementation Stages
Added 19 more
regions
The remaining 62 regions
begin to introduce a
regime on their territory
(in accordance with local
legislation)
Launch in 4 regions of
Russia
1. January 2019 2. January 2020 3. July 2020
Implementation Approach
33

34. Results of the Implementation of the Self-employed Tax
Regime in Russia in 20221
5 million
taxpayers
800 million
Fiscal receipts
45 billion RUB ($800 million)
Tax accrual
RUB 1,2 trillion ($20 billion)
The professional income tax
base
34
[1] Source: Federal Tax Service of Russia as of 1.06.2022

35. Main participants:
* by the tax base: 35.5 %
* by the tax amount: 31.2 %
* by the number of
taxpayers: 47.5 %
* by the number of
receipts: 90.4 %
Emerging Partner Ecosystem
Source: Federal Tax Service of Russia 35

36. Technical Solution
Tax Administration IT System
APIs* for
Partners
Prof.
Services
Freelance
portals
Taxi
Aggregator
s
Banks Telecoms
Self-employed Drivers
36
My Tax
Applicatio
n
* API – Application Program Interface

37. How it Works—YanGo Example
37
Tax System YanGo
Self-employed
Driver
Taxi
Passenger
My Tax
Applicatio
n
API
Payment for the
ride
Transportatio
n Service
Issues receipts to
the passengers
Payment
for the
service
Sends receipts to the Tax System
Can pay income tax for the drivers
Income statistics
Professional income tax
accrual for the period
Sees tax payables
Can pay tax from the app
/ delegate to YanGo

38. «My Tax» Application and Tax
Administration Analytical System
Key capabilities and features
38

39. 39
«My Tax» Application for the Self-employed
Registration as a taxpayer and conducting
business does not require visiting tax
administration and takes 5 minutes via the
website and mobile app.
As the payment for their work or services,
taxpayers can accept cash payments and use
personal banking accounts with no restrictions.
Upon receipt of income, the taxpayer registers it
in the application.
Application generates a receipt that taxpayers
can (but are not obliged to, if not asked) transfer
to the clients.
Application collects information from the
taxpayer to calculate taxes and notifies him
about the tax payment deadlines.
After the reporting period (calendar month) is
closed, the tax administration automatically
calculates the sum of professional income and
accrues the amount of the tax payable.
A self-employed can pay the tax in the same
application with a linked credit card in a few
seconds.
No need to file a tax return.

40. «My Tax» Application: Registration of the Self-employed
40
1. Self-registration

41. «My Tax» Application: Registration of the Self-employed
41
2. Data Verification 3. Registration
Confirmed
80% of applications are processing
within 3 seconds

42. 42
Alternative Options for Taxpayer Identification and
Registration
Self-employed can also use a
“one-click registration” without
providing a national ID and
selfie photo if they already
have a verified account on the
following state platforms:
Government Services Portal
of Russia
Taxpayer’s personal account
at the Federal Tax Services
of Russia portal

43. The tax base (monthly income) is calculated automatically based on the receipts
that are generated in the application for each sales transaction
Creating a sales receipt Taxable income and tax payable
Estimated tax for the
current period to date
(before and after two sales by
250₽)
Tax due for the
completed tax
period
Income for the current
period to date (before and
after two sales by 250₽)
QR code allows the
buyer to check the
receipt
«My Tax» Application: Receipts, Total Income, Tax Payable
43

44. Adding a Card Enable Auto Payments
Payment Menu
44
«My Tax» Application: Payments and Automatic Payments
Payment methods:
By debit/credit card
>90% choose this option
Through a bank account
created by the app
Automatic payments
available
No fees

45. Self-employed can generate
official confirmations of their
income through the
application:
§ Their status (for KYC
procedures of their buyers
and banks)
§ Their annual income (for
loans, visas, etc.)
Buyers can also check the
status of sellers through the
tax website or API
«My Tax» Application: Proof of the Self-employed Status
and Income
45

46. Interactive map with key statistics
at country and regional levels
Database with the taxpayers'
profiles
Tax Analytical System (1/4)
46

47. Statistics by professional activity, region, partner, etc.
Tax Analytical System (2/4)
47

48. Control panel: taxpayers profiles and risk analysis
Tax Analytical System (3/4)
48

49. Taxpayer Notifications
Register of the tax payment claims
Additional information
Tax Analytical System (4/4)
49

50. 1. Custom reports
Taxpayers at risk Statistics by regions Partner statistics
Risk and Audit Management System (1/2)
50

51. 2. Statistics summary
Number of checks for individuals and legal entities and
income received from individuals and legal entities
Reports for the Ministry of Labor and the Ministry of
Social Protection
3. Reports for the government
agencies
Risk and Audit Management System (1/2)
51

52. Exhibits
52

53. About Us
Digital Tax Technologies (DTT) is an international
expert in tax gap minimization, a trusted digital
transformation advisor & solution provider for national
tax administrations.
We help tax administrations around the world to
reduce the tax gap, improve tax revenue collection and
reduce the share of the shadow economy.
Our mission is to increase global fiscal transparency,
improve tax compliance and administration, and
ensure fair competition and welfare.
Our team consists of experts with experience in digital
tax administration advisory and implementation in
various European, CIS, Middle East and African
countries.

54. 54
Experience and Contacts
We are a global team of tax and digital experts working with tax
administrations, global tax consultants, and top technology providers on
the most important aspects of the digital transformation of national tax
systems.
Our key areas of expertise are:
Digital transformation of tax administrations and transition to the real-
time economy for the tax gap reduction
Implementation of digital track & trace solutions
Implementation of online cash registers
Effective taxation of platform sellers and self-employed taxpayers in
sharing and gig economies with eVAT / eInvoicing solutions
Advanced analytics/Big Data/AI for value-added tax administration
Tailor-made and off-the-shelf software product development
End-to-end IT solutions design, implementation & support in
cooperation with top software & hardware vendors and tax
consultants
Contact us for
more details
info@digitaltaxtech.com
www.taxtech.digital