Since the beginning of this year, employers who operate in the Far North and equivalent areas have intensified disputes with the Pension Fund of the Russian Federation on the issue of calculating insurance premiums. The reason for this is changes in legislation from 01/01/2015.

They searched for the border until 2015

In the previous edition of paragraphs. 7 clause 1 art. 9 of the Federal Law of July 24, 2009 N 212-FZ “On Insurance Contributions...” the cost of travel or flights on vacation abroad at tariffs calculated from the place of departure to the checkpoint across the State Border of the Russian Federation was not subject to insurance contributions.
The new edition of this subclause clarifies that in the case of northern workers taking a vacation outside the Russian Federation, the cost of travel or flight calculated from the place of departure to the checkpoint across the State Border of Russia, including to the international airport where the workers pass through, is not subject to insurance premiums. border control.
The Ministry of Labor of Russia, in Letter No. 17-3/B-258 dated May 21, 2015, announced that in the event of a vacation outside the Russian Federation, an employee working and living in the regions of the Far North and equivalent areas and traveling to the place of vacation by air is not taxed insurance premiums (regardless of whether the employee was sent to a place of rest before 01/01/2015 or after) only the cost of travel of such an employee from his place of residence or work to the airport where he undergoes border control.
A certificate of the cost of the flight from the airport where the employee undergoes border control to the airport closest to the point of crossing the State Border of the Russian Federation and back, issued by the transport company providing air transportation, is not required, since the cost of such a flight is subject to insurance premiums in the generally established manner.
The arbitration courts categorically disagreed with this conclusion.
In the previous version of Art. 9 of Law N 212-FZ did not specify which particular checkpoint across the border of the Russian Federation should be taken into account when determining the amount of compensation for travel that is not subject to insurance premiums: an airport or a checkpoint as a specially equipped place where border control and passage of persons across the border are carried out located in close proximity to it. The Presidium of the Supreme Arbitration Court of the Russian Federation, in Resolution dated October 2, 2012 N 7828/12, decided that when an employee spends a vacation outside the Russian Federation, payment for flights to the place of vacation and back must be made within the territory of the Russian Federation, limited by the state border, at rates to the nearest airport , located near the border of the Russian Federation.
The Arbitration Court of the Khanty-Mansiysk Autonomous Okrug - Ugra in Decision dated 02.26.2015 N A75-12647/2014 stated that other legal regulation of the issue of charging insurance premiums for the cost of travel (flight) does not apply to legal relations that arose before 01.01.2015.
The Thirteenth Arbitration Court of Appeal, in its Resolution dated May 19, 2015 N A42-6669/2014, referred to Art. 325 of the Labor Code of the Russian Federation, which provides for compensation for the cost of travel and baggage transportation within the Russian Federation to the place of vacation use and back to persons working in the Far North and equivalent areas.
Consequently, persons traveling on vacation abroad of the Russian Federation have the right to pay the cost of travel only within the Russian Federation. Compensation to employees for the cost of travel to and from the place of vacation use within the Russian Federation is not subject to insurance premiums. In this case, the employer is obliged to establish the cost of travel, which can be determined using the relevant travel documents (tickets), if the travel was paid specifically from the checkpoint to the border, or certificates from carriers about the cost of travel to the border of the Russian Federation. A similar conclusion was made by the Arbitration Court of the Republic of Karelia in its Decision dated July 1, 2015 N A26-2628/2015.

What now?

By letter dated May 21, 2015 N 17-3/B-258, the Russian Ministry of Labor expressed the opinion that the new edition of paragraphs. 7 clause 1 art. 9 of Law No. 212-FZ does not contradict the provisions of Art. 325 of the Labor Code of the Russian Federation, since it establishes only the procedure for imposing insurance premiums on certain payments and does not infringe on the rights of such employees to compensation by the employer for the costs of paying the entire cost of travel within the Russian Federation to the place of use of vacation and back.
However, the new edition infringes on the rights of northern workers who did not go on vacation abroad.
The Presidium of the Supreme Arbitration Court of the Russian Federation, in Resolution dated October 2, 2012 N 7828/12, stated that if you agree with the Pension Fund of the Russian Federation, then when taking a vacation in the Russian Federation, the insurer has the right not to impose insurance premiums on compensation for the employee’s travel across the territory of Russia in full, and when the same employee travels to a holiday destination abroad by plane - only part of the compensation. This violates the principle of equal taxation of insurance premiums.
Taking into account the fact that in 2015 Art. 325 Labor Code of the Russian Federation, paragraphs. 7 clause 1 art. 9 of Law N 212-FZ provides for compensation that is not subject to insurance premiums, including for travel to a place of rest and back within the Russian Federation; determining the amount of compensation based on the territorial location of the checkpoint entails a violation of the constitutional principle of equality before the law.
So the chance to defend the employer’s right to continue and not charge insurance premiums for the cost of flying over the territory of the Russian Federation in 2015 is very great. And the courts are unlikely to like the fact that the Pension Fund’s position encourages northern workers to spend their holidays abroad rather than in Russia.
As for compensation for the cost of travel for family members of employees working and living in the Far North and equivalent areas, the Ministry of Labor of Russia in Letter dated 04/06/2015 N 17-4/OOG-422 stated that one should be guided by the fact that family members of employees do not have an employment relationship with the organization.
On this basis, payments in their favor are not recognized as subject to insurance premiums in accordance with paragraph 1 of Art. 7 of Law No. 212-FZ.
At the same time, the Russian Ministry of Labor emphasized that these payments are not recognized as subject to insurance premiums both before and after 01/01/2015.
Now it remains to prove that they are not recognized as subject to insurance premiums after this date and payment of compensation for flights to a place of rest and back within the Russian Federation, without reference to the territorial location of the airport at which the employee passed border control.

Question:

On the imposition of insurance premiums on compensation for the cost of travel to and from a vacation destination outside the Russian Federation for workers working and living in the Far North and equivalent areas and traveling to the vacation destination by air.

Answer:

The Department of Social Insurance Development has considered the appeal and on the issue of taxation of insurance premiums on amounts of payments in the form of compensation by the employer to its employees working and living in the regions of the Far North and equivalent areas, payment of the cost of travel to a vacation destination outside the Russian Federation, reports the following.

In accordance with Article 325 of the Labor Code of the Russian Federation (hereinafter referred to as the Labor Code), persons working in organizations located in the Far North and equivalent areas, and non-working members of their families have the right to payment once every two years at the expense of the employer travel and luggage transportation within the territory of the Russian Federation to the place of vacation use and back.

Part 1 of Article 7 of the Federal Law of July 24, 2009 No. 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund” (hereinafter referred to as Federal Law No. 212-FZ) determines that the object Taxation of insurance premiums for payers of insurance premiums - organizations recognizes payments and other remuneration accrued by them in favor of individuals, in particular, within the framework of labor relations.

According to Part 1 of Article 8 of Federal Law No. 212-FZ, the base for calculating insurance premiums for insurance premium payers - organizations is defined as the amount of payments and other remunerations provided for in Part 1 of Article 7 of Federal Law No. 212-FZ, accrued by insurance premium payers for the billing period in for the benefit of individuals, with the exception of the amounts specified in Article 9 of this Federal Law.

Clause 7 of Part 1 of Article 9 of Federal Law No. 212-FZ (as amended by Federal Law No. 188-FZ of June 28, 2014) establishes that in case of vacation by employees working and living in the regions of the Far North and equivalent areas, outside territory of the Russian Federation, the cost of travel or flight (including the cost of luggage weighing up to 30 kilograms), calculated from the place of departure to the checkpoint across the State Border of the Russian Federation, including the international airport at which these workers undergo border control at checkpoint across the State border of the Russian Federation.

Based on the provisions of Article 9 of the Law of the Russian Federation dated 01.04.1993 No. 4730-1 “On the State Border of the Russian Federation”, a checkpoint across the State Border of the Russian Federation is understood as a territory (water area) within, in particular, an airport open for international communications (international flights), where, in accordance with the legislation of the Russian Federation, passage of persons, vehicles, cargo, goods and animals across the state border is carried out.

Thus, in the case of a vacation outside the territory of the Russian Federation, an employee working and living in the regions of the Far North and equivalent areas and traveling to the place of vacation by air is not subject to insurance contributions to state extra-budgetary funds (regardless of whether the employee was sent to the place of rest before 01/01/2015 or after) only the cost of travel of such an employee from his place of residence or work to the international airport where he undergoes border control. In this regard, a certificate of the cost of the flight from the international airport of departure, where the employee undergoes border control, to the airport closest to the point of crossing the State Border of the Russian Federation and back, issued by the transport company carrying out air transportation, is not required, since the cost of such a flight is subject to insurance premiums in a generally established manner.

The provision provided for in paragraph 7 of part 1 of Article 9 of Federal Law No. 212-FZ does not contradict the provisions of Article 325 of the Labor Code, since it establishes only the procedure for imposing insurance contributions on certain payments aimed at compensating the employer for the costs of paying the cost of travel within the territory of the Russian Federation to place of vacation and back, in favor of employees working and living in the Far North and equivalent areas, and does not infringe on the rights of such employees to compensation by the employer for the costs of paying the entire cost of travel within the territory of the Russian Federation to the place of vacation and back.

Director of the Department for the Development of Social Insurance and State Security of the Ministry of Labor and Social Protection of the Russian Federation L.Yu. Chikmacheva

Commentary to the letter of the Ministry of Labor of the Russian Federation dated May 21, 2015 No. 17-3/B-258.

A strict and literal approach was applied by officials of the Ministry of Labor in Letter dated May 21, 2015 No. 17-3/B-258 when answering the question about the imposition of insurance premiums on compensation for employees of enterprises working and living in the regions of the Far North and equivalent areas and heading to the place holidays abroad by air.

In paragraph 7 of Part 1 of Art. 9 of the Law on Insurance Contributions states that the cost of travel of employees to the place of vacation and back and the cost of transportation of luggage weighing up to 30 kg, paid by the payer of insurance premiums to persons working and living in the regions of the Far North and equivalent areas, are not subject to insurance premiums. in accordance with the legislation of the Russian Federation, employment contracts and (or) collective agreements.

At the same time, in the case of such employees taking a vacation outside the territory of the Russian Federation, it is explained how to calculate the cost of travel, which is not completely exempt from insurance premiums, but only in the part related to travel through the territory of the Russian Federation. The cost of travel from the place of departure to the checkpoint across the State Border of the Russian Federation is calculated, including the international airport where workers undergo border control at the checkpoint across the State Border of the Russian Federation.

Let us note that this wording of clause 7, part 1, art. 9 of the Law on Insurance Contributions is valid only from 01/01/2015. It was introduced by Federal Law No. 188 FZ dated June 28, 2014 “On Amendments to Certain Legislative Acts of the Russian Federation on Compulsory Social Insurance Issues.” Previously, this norm lacked clarification regarding the international airport; in all cases, the non-taxable cost of travel had to be calculated based on the tariffs from the place of departure to the checkpoint across the State Border of the Russian Federation (it was not explained what was considered a checkpoint).

However, previously, officials of the Ministry of Labor believed that in the case of a vacation outside the territory of the Russian Federation, an employee working and living in the regions of the Far North and equivalent areas and traveling to the place of vacation by air is not subject to insurance contributions to state extra-budgetary funds only the cost of travel of such an employee from his place of residence or work to the international airport where he undergoes border control. They were sure that this is how the previous wording of clause 7, part 1, art. should be interpreted. 9 of the Law on Insurance Contributions (see Letter of the Federal Insurance Service of Russia dated November 17, 2011 No. 14 03 11/08-13985).

This confidence was based on Art. 9 of the Law of the Russian Federation dated April 1, 1993 No. 4730-1 “On the State Border of the Russian Federation.” It defines that a checkpoint across the State Border of the Russian Federation is understood as a territory (water area) within, in particular, an airport open for international communications (international flights), where, in accordance with the legislation of the Russian Federation, passage of persons, vehicles, cargo, goods and animals.

Letters from the Ministry of Labor of Russia dated May 21, 2015 No. 17-3/B-258 and dated May 20, 2015 No. 17-3/10/B-3536 emphasize that the department does not see any difference in its approach to this issue in relation to the period before 01.01 .2015, and after. It is indicated that it is not required to confirm with a certificate issued by a transport company the cost of a flight from the international airport of departure where the employee undergoes border control to the State Border of the Russian Federation and back, since the cost of such a flight is subject to insurance premiums in the general manner. According to officials, there is no infringement of the rights of workers who use this type of transport to travel to their vacation destination.

The question arises: why, in this case, did the Ministry of Labor insist on amending clause 7 of Part 1 of Art. 9 of the Law on Insurance Contributions (obviously, this change was an initiative of the named department)? However, the answer to this question is easy to find. Thus, officials intend to “cope” with judicial practice that is unfavorable for them.

The key here is Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated October 2, 2012 No. 7828/12 in case No. A05-11287/2011. This decision of the Supreme Court brought to its logical conclusion the established position of the arbitration courts, which did not agree with the opinion of the Ministry of Labor (see decisions of the FAS VSO dated July 18, 2012 in case No. A58-4557/2011, FAS SZO dated May 21, 2012 in case No. A42-4733/ 2011). According to the arbitrators, payments made to employees to compensate for the cost of an air flight from the place of departure to the actual crossing of the State Border of the Russian Federation and back, that is, compensation payments in full, are not subject to inclusion in the base for calculating insurance premiums.

In other words, when traveling outside the Russian Federation by air without landing at the airport closest to the place where the State Border of the Russian Federation is crossed, the actual expenses incurred for the flight by the shortest route to the place of use of the vacation are subject to reimbursement and inversely proportional to the distance of the flight by air over the territory of the Russian Federation based on the ratio of the distance from the Russian airport of departure (arrival) to the State border of the Russian Federation along the route of aviation passenger transport to the total flight distance from the Russian airport of departure (arrival) to the foreign airport of arrival (departure), multiplied by the cost of the specified flight in rubles (the ratio of the orthodrome in the Russian Federation to the total orthodrome in percent).

At the same time, the orthodrome in the Russian Federation means the shortest distance from the Russian airport of departure (arrival) to the State border of the Russian Federation along the air transport route; the general orthodrome means the distance from the Russian airport of departure (arrival) to the foreign airport of arrival (departure) along the route of the air passenger transport.

This decision of the Supreme Arbitration Court further strengthened the judicial authorities in assessing the correctness of this approach (see decisions of the FAS VVO dated July 16, 2013 in cases No. A29-5041/2012, No. A29-5040/2012, dated January 31, 2013 in case No. A29-1904/ 2012, AS VSO dated 05.29.2015 No. F02-2324/2015 in case No. A33-22245/2014, dated 05.20.2015 No. F02-2391/2015 in case No. A33-22246/2014, FAS DVO dated 05.29.2013 No. F03 -2141/2013 in case No. A73-11116/2012, FAS ZSO dated December 24, 2013 in case No. A75-4341/2013, FAS SZO dated September 3, 2013 in case No. A42-3773/2012).

Well, now after making changes to clause 7, part 1, art. 9 of the Law on Insurance Contributions and will the courts change their position?

Maybe. However, arbitrators would be inconsistent if they did so. Indeed, in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated October 2, 2012 No. 7828/12, the main argument in favor of insurers was not a special interpretation of the norm in question, different from the opinion of the Ministry of Labor, but the protection of the rights of workers who use air transport when traveling from the Far North to their vacation destination outside the territory of the Russian Federation.

The Supreme Arbitration Court pointed out that when interpreting this legal norm, the Ministry of Labor violates the universal principles of fairness and equality in the assessment of insurance premiums arising from the Constitution of the Russian Federation, as well as the principles of equality of citizens in social security and the economic justification of insurance premiums.

For example, the Resolution of the Constitutional Court of the Russian Federation dated July 10, 2007 No. 9 P notes that the legal regime of insurance payments for compulsory social insurance should be based on the universal principles of justice and legal equality and the resulting requirement for a balance of rights and obligations (Article 1, Part 1 , art. 6 part 2, art. 19 of the Constitution of the Russian Federation) (see also resolutions of the Constitutional Court of the Russian Federation of February 24, 1998 No. 7 P, dated December 23, 1999 No. 18 P, dated March 22, 2007 No. 4 P).

The judges of the Supreme Arbitration Court reasonably determined that if a checkpoint across the State Border of the Russian Federation, when an employee flies to a holiday destination abroad on a direct flight without an intermediate landing, is considered to be the building of an airport open for international traffic from which this employee flies, and not another point pass closest to the border (for example, within a railway or automobile station), then with this interpretation the insurer’s obligation to pay insurance premiums becomes dependent on the type of transport that the employee will use to the place of vacation and back, since when traveling by rail or By road transport, the policyholder has the right not to impose insurance premiums on compensation for the employee's travel across the territory of the Russian Federation in full, and when the same employee travels to a vacation spot abroad by plane - only part of the compensation. This violates the principle of equal taxation of insurance premiums.

In addition, this approach violates the principle of equality of rights of insured persons, since the amount of contributions credited to the insured depends on the method of crossing the state border. The judges indicated that the compensation in question is one of the ways to create additional opportunities for good rest with the purpose of improving the health and restoration of working capacity of citizens outside the northern territories, whose health is constantly exposed to the negative impact of natural and climatic factors. Therefore, this legal norm cannot be interpreted from the point of view of the economic justification for exempting only part of the compensation payment from insurance premiums.

The arbitrators also noted that when applying the approach of the Ministry of Labor, a threat arises that, first of all, employers not related to the public sector will strive in collective and (or) labor agreements to limit the amounts of these compensations only to amounts that are not subject to insurance contributions.

Thus, even the new wording of clause 7, part 1, art. 9 of the Law on Insurance Contributions should not, in our opinion, affect the fact identified by YOU that the position of the Ministry of Labor does not comply with constitutional principles. But what will happen in practice is still unknown.

Federal Law of July 24, 2009 No. 212 FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund.”

Brought to the attention of the territorial tax authorities by Letter of the Federal Tax Service of Russia dated May 28, 2015 No. ND-4-5/9179.

By ruling of the Supreme Arbitration Court of the Russian Federation dated November 19, 2012 No. VAS-14728/12, the transfer of this case to the Presidium of the Supreme Arbitration Court for review in the order of supervision was refused.

By ruling of the Supreme Arbitration Court of the Russian Federation dated January 9, 2013 No. VAS-9527/12, the transfer of this case to the Presidium of the Supreme Arbitration Court for review in the order of supervision was refused.

This decision, like some others, was made after the new wording of clause 7, part 1, art. 9 of the Law on Insurance Contributions, although it concerns the period when the previous version of the said norm was applied.

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The essence of the dispute

Officials of the Russian branch who conducted the audit revealed that the institution did not charge fees for travel expenses for vacations abroad (Turkey, Thailand) based on presented certificates of the cost of rail travel on the route - Moscow.

According to controllers, the base for calculating insurance premiums does not include the cost of travel for employees and members of their families in the event of a vacation outside the territory of the Russian Federation to the checkpoint across the state border of the Russian Federation (that is, to Moscow airport). Accordingly, the cost of travel from the airport location (in Moscow) to the station where the border checkpoint is located (Sochi) is subject to insurance premiums.

Thus, the institution was assessed additional fees, fines and penalties. However, not agreeing with such actions of officials, it filed a lawsuit.

The court's decision

The court sided with the fee payer. And that's why.

Travel payment norm

Article 325 of the Labor Code of the Russian Federation provides for compensation of expenses for paying the cost of travel and baggage to the place of use of vacation and back to persons working in the Far North and equivalent areas. Such persons have the right to travel, paid once every two years at the expense of the employer, to the place of use of the vacation and back within the territory of the Russian Federation by any type of transport, including personal (with the exception of taxis), as well as to pay the cost of transporting luggage weighing up to 30 kg.

A similar norm is contained in Article 33 of the Law of the Russian Federation of February 19, 1993 No. 4520-1 “On state guarantees and compensation for persons working and living in the regions of the Far North and equivalent areas.”

Calculation of insurance premiums

As stated in paragraph 7 of part 1 of Article 9 of the Federal Law of July 24, 2009 No. 212-FZ, insurance premiums are not imposed on the cost of travel of employees and members of their families to the place of vacation and back, paid to persons working and living in the Far North and equivalent areas, in accordance with the law, labor or collective agreements.

In case of vacation by the specified persons outside the territory of the Russian Federation, insurance premiums are not subject to the cost of travel or flight calculated from the place of departure to the checkpoint across the state border of the Russian Federation, including the cost of luggage weighing up to 30 kg.

By virtue of Article 9 of the Law of the Russian Federation of April 1, 1993 No. 4730-1 “On the state border of the Russian Federation”, a checkpoint across the state border is understood to be a territory (water area) within a railway, automobile station or station, port, airport, airfield, and also other specially designated areas where border crossing is carried out.

At the same time, aircraft cross the state border along specially designated air corridors.

Thus, the employer is obliged to compensate the employee for travel from the checkpoint to the state border (within the territory of the Russian Federation). In this case, the cost of travel subject to compensation can be determined by the corresponding travel documents (tickets), if the travel was paid specifically from the checkpoint to the border, or by carriers’ certificates about the cost of travel to the border.

A similar position is set out in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated October 2, 2012 No. 7828/12.

The case materials confirm that the institution compensated its employees for travel on vacation outside Russia in the amount of expenses for paying the cost of travel to the place of use of the vacation and back only within the Russian Federation. In confirmation of this, certificates issued by transport organizations about the cost of air travel within the territory of the Russian Federation were presented.

Thus, the decision of the specialists of the FSS of Russia was declared invalid.

Is it necessary to charge insurance premiums for the amount of travel expenses to the place of vacation and back for an employee working in the Far North and equivalent areas. The employee spends his vacation abroad. The internal documents of the company define the concept of the border of the Russian Federation in accordance with Article 1 of Law of the Russian Federation 4730-1. This document states that the state territory of Russia ends not at the airport checkpoint, but when the aircraft crosses the vertical surface of the airspace passing above the state border line of the Russian Federation. Based on the definition of the state border, we compensate for travel expenses to the vacation destination and back not to the checkpoint at the airport, but before the aircraft crosses the state border, i.e. at the rate to the airport closest to the border crossing point on the territory of the Russian Federation. For example, an employee purchased a ticket for a direct flight from Surgut to Kyiv without an intermediate stop. We will compensate for the costs of Surgut-Rostov, because Rostov airport is the closest point to the border crossing point on the territory of the Russian Federation. Despite the fact that customs was cleared at the Surgut airport, we will reimburse the costs of Surgut-Rostov. Costs for travel across the territory of the Russian Federation (Surgut-Rostov) are not subject to insurance premiums, because Rostov is the extreme point to the border crossing point on the territory of the Russian Federation. A similar position was expressed by the FAS NWO in its Resolutions dated 08/22/2007. No. A42-328/2007, dated November 27, 2006 No. A26-4765/2006-28, dated August 20, 2008 No. F04-1476/2008(9543-A81-41), dated June 27, 2007 No. F04-4290/2007(35713 -A75-40), in whose opinion it is not legitimate to narrow the concept of the boundaries of the territory of the Russian Federation to the concept of a checkpoint at the international airport of departure. The court proceeded from the fact that expenses for travel to and from the vacation destination are taken into account only for that part of the expenses that falls on the territory of the Russian Federation. In order to avoid tax risks, please clarify whether our actions are legal.

From January 1, 2015, clause 7, part 1, art. 9 of Federal Law No. 212-FZ is in effect in a new edition, which, in particular, states that when an employee flies abroad, the cost of the flight calculated from the place of departure to the checkpoint across the State Border of the Russian Federation, including international ones, is not subject to insurance premiums airport where workers undergo border control at the checkpoint across the State Border of the Russian Federation. Therefore, from 1 January 2015, the cost of a direct flight to a holiday destination abroad is subject to full contributions.

The rationale for this position is given below in the materials of the Glavbukh System

Personal income tax and insurance premiums

Regardless of what taxation system the organization uses, compensation for expenses for paying employees for travel to and from the place where they take their vacation, provided for by the organization’s internal documents, is not subject to:

1. contributions for compulsory pension (social, medical) insurance (clause 7, part 1, article 9 of the Law of July 24, 2009 No. 212-FZ);
2. contributions for insurance against industrial accidents and occupational diseases (subclause 8, clause 1, article 20.2 of the Law of July 24, 1998 No. 125-FZ).

As for compensation for travel expenses to and from the place of use of vacation for members of the employee’s family, it is not subject to:

1. Personal income tax - in relation only to non-working family members (clause 3 of article 217 of the Tax Code of the Russian Federation, article 325 of the Labor Code of the Russian Federation, letters of the Ministry of Finance of Russia dated August 12, 2014 No. 03-04-06/40048, dated August 8, 2013 No. 03 -04-06/31979);
2. insurance premiums – in relation to any family members. This is due to the fact that such compensation is paid to citizens who are not in labor relations with the organization (part 1 of article 7 of the Law of July 24, 2009 No. 212-FZ, paragraph 1 of article 20.1 of the Law of July 24, 1998 No. 125-FZ, letter of the Ministry of Labor of Russia dated December 30, 2014 No. 17-3/B-641).

The amount, procedure and terms of payment for travel to and from the place of use of vacation for employees and members of their families are limited by the internal documents of the organization. That is, such payments are not subject to personal income tax and insurance premiums:*

1. in the amounts established by labor or collective agreements, the Regulations on vacations, etc.;
2. within the framework of the frequency (but not less than once every two years) established by labor or collective agreements, the Regulations on vacations, etc.;
3. if there are documents confirming the expenses incurred by the employee. The composition of supporting documents is not defined by law, therefore, in the collective (employment) agreement of the organization, it is necessary to establish a list of documents that the employee must submit to receive compensation. If the employee does not provide supporting documents, personal income tax will need to be withheld from the compensation amount.

With regard to personal income tax, similar conclusions are confirmed by letters of the Ministry of Finance of Russia dated January 11, 2013 No. 03-03-06/1/2, dated August 13, 2012 No. 03-04-06/6-236, dated February 2, 2010 No. 03-04-08/4-19 (brought to the attention of the tax inspectorates by letter of the Federal Tax Service of Russia dated October 9, 2013 No. BS-4-11/18086).

Situation: Is it necessary to withhold personal income tax and charge insurance premiums to pay for the employee’s travel to the place of vacation (abroad) and back. The organization is located in the Far North region

Yes need. But only for the cost of travel outside Russia. An exception is when an employee flies on vacation by plane. In this situation, special requirements apply for premium purposes.*

Personal income tax

Compensation in the form of payment for travel in the amount established by the internal documents of the organization, and subject to the restrictions established by law, is not subject to personal income tax (clause 3 of Article 217 of the Tax Code of the Russian Federation).

This benefit only applies to travel expenses within Russia. Therefore, regardless of the location of the employee’s vacation (in Russia or abroad), only that part of the compensation that relates to the cost of travel within Russian territory is exempt from personal income tax.

Personal income tax must be withheld from the cost of travel (flight) from the place of crossing the Russian border to the place of vacation abroad and back to the Russian border. This conclusion is confirmed by letters from the Ministry of Finance of Russia dated December 29, 2012 No. 03-04-06/6-375 and dated May 12, 2009 No. 03-04-06-01/113.

For personal income tax purposes, the current legislation does not specify what is the place of crossing the Russian border. Therefore, when traveling by train, personal income tax does not need to be withheld from the cost of travel throughout Russia.

In the case of air travel, the cost of travel to the Russian airport closest to the point of crossing the Russian border is not subject to personal income tax. Even if in fact the employee was flying from another airport.

Insurance premiums

The situation with insurance premiums is different. Contributions do not apply to travel or flight costs (including the cost of luggage weighing up to 30 kg), calculated from the place of departure to the checkpoint across the Russian state border. For the purposes of insurance premiums, it is expressly stated what the place of border crossing is in case of air travel: this is the international airport where employees undergo border control at the checkpoint across the Russian state border*. This is stated in paragraph 7 of part 1 of Article 9 of the Law of July 24, 2009 No. 212-FZ and subparagraph 8 of paragraph 1 of Article 20.2 of the Law of July 24, 1998 No. 125-FZ.

Therefore, when flying to a holiday destination, you cannot focus on the border checkpoint that is closest to the holiday destination. Similar clarifications are in the letter of the FSS of Russia dated November 17, 2011 No. 14-03-11/08-13985. This letter is based on the old version of laws No. 212-FZ and No. 125-FZ. Since 2015, the controllers’ point of view has been enshrined in legislation.

Let's explain with an example. An employee flies on the Murmansk-Hurghada route in transit through Moscow. Payment for a flight from Murmansk to Moscow is not subject to contributions. But you need to pay insurance premiums for the entire cost of the Moscow-Hurghada flight.*