The risks of working with self-employed persons (samozanyatyy) for a company come down to one question: whether three conditions are met at once — the contractor’s income is an object of taxation under the professional income tax (NPD), a receipt has been generated for the payment, and the relationship with the contractor is not in fact an employment relationship. As long as all three conditions are met, the company is exempt from personal income tax (NDFL) and insurance contributions and is entitled to recognize the expense for that payment for tax purposes. If the income ceases to be an object of NPD taxation, the client becomes a tax agent for NDFL, and the payment is subject to insurance contributions on a general basis; if, however, the income itself remains an object of NPD taxation but there is no receipt, NDFL is not affected — only the exemption from contributions and the right to recognize the expense are lost.
These risks line up into a practical chain: what to check before signing a contract, how to monitor status before each payment, which features of the contract and of actual practice reveal a disguised employment relationship, and what to do if the status had already been lost at the time of payment. At each step of this chain, two phenomena of different weight should be kept apart: a risk signal — an indicator or suspicion that merely draws the attention of a supervisory authority — and a legal fact, a provision that directly establishes an obligation or liability.
Why the Risks of Working With a Self-Employed Person Fall on the Client
A professional income tax payer is exempt from NDFL only with respect to income that is an object of NPD taxation (Article 2(8) of Federal Law No. 422-FZ of 27 November 2018 “On Conducting an Experiment to Establish the Special Tax Regime ‘Professional Income Tax’,” hereinafter 422-FZ). If for some reason the income is not recognized as an object of NPD taxation, the exemption simply does not apply to that specific payment.
The law separately ties the exemption of payments to a self-employed individual (one who is not an individual entrepreneur) from insurance contributions to the existence of a receipt generated under the rules of Article 14 of 422-FZ (Article 15(1) of 422-FZ). Without a receipt, an organization or individual entrepreneur (IP) is also not entitled to recognize the expense — separate provisions with the same condition apply for corporate income tax, the simplified tax system (USN), the unified agricultural tax (ESKhN), and an IP’s NDFL (Article 15(8)–(10) of 422-FZ).
If the income ceases to be an object of NPD taxation, the client is recognized as a tax agent for NDFL with respect to that payment, and the payment itself under the civil-law contract becomes subject to insurance contributions — exactly as if the contractor had never been an NPD payer in the first place. If, however, the income remains an object of NPD taxation but there is no receipt, NDFL is not affected: the company simply does not receive the exemption from contributions and is not entitled to recognize the expense.
Who Is Not Entitled to Apply NPD: What to Check Before the Contract
The law settles the question of who cannot be self-employed with an exhaustive list: Article 4(2) of 422-FZ lists who is not entitled to apply the professional income tax. For the client, this is a reason to check against the list before signing the contract — it is harder to fix things afterward.
- Sells excisable goods or goods subject to mandatory labeling (except certain sugar-containing beverages)
- Resells goods and property rights, except personal property
- Extracts and sells minerals
- Has employees with whom they are in an employment relationship — including when someone is actually admitted to work without a formalized contract (Article 16(3) of the Labor Code of the Russian Federation)
- Acts under mandate, commission, or agency agreements (with one exception)
- Delivers goods while accepting payment for them, except when the seller’s cash register equipment (KKT) is used
- Applies another tax regime or conducts business activity subject to NDFL (with one exception)
- Received income exceeding ₽2.4 million in the current calendar year
- Engages in mining (of digital currency) or transactions with digital currency
Item 4 is worth checking separately: professional income is income from activities in which the individual has no employer and does not engage hired workers under employment contracts (Article 2(7) of 422-FZ). The contractor having hired staff makes applying NPD impossible regardless of the terms of the specific contract.
The ₽2.4 million limit (Article 4(2)(8)) is calculated on the contractor’s total income for the current calendar year — including payments from all clients, not just from one company. The NPD experiment is set to run until 31 December 2028 inclusive; throughout the experiment, this limit may not be lowered and the tax rates may not be raised (Article 1(2)–(3) of 422-FZ).
Former and Current Employees: The “Less Than Two Years” Rule
A separate provision covers the situation where the contractor was previously on the client’s staff. Under Article 6(2)(8) of 422-FZ, income that individuals receive for providing services (performing work) under civil-law contracts is not recognized as an object of NPD taxation if the clients for those services (work) are the individuals’ employers or persons who were their employers less than two years ago.
This rule does not prohibit concluding a contract with a former employee. It establishes that income under such a contract is not an object of NPD taxation if the company was this person’s employer less than two years ago. Separately from this rule, income received within an employment relationship is not recognized as an object of NPD taxation at all — regardless of the time frame (Article 6(2)(1) of 422-FZ).
The practical consequence is the same as in the previous section: NDFL and insurance contributions apply on a general basis, as for an ordinary civil-law contract without NPD. For such payments, this is clear in advance, without consulting the Federal Tax Service (FNS) service: it shows only NPD payer status as of the query date and does not reflect the history of employment relations with the client.
Former employees in particular have come into the sights of the FNS and the Ministry of Labor and Social Protection (Mintrud): since 16 February 2026, tax authorities have been transmitting to the regional interdepartmental commissions for combating illegal employment and to the bodies of the Federal Service for Labor and Employment (Rostrud) information about organizations and IPs for which more than 10 NPD contractors with an average monthly income of over ₽25,000 were in an employment relationship with that same client in the previous reporting quarter — more on this threshold and how it differs from the Mintrud risk indicator in the next section.
Signs of an Employment Relationship: What the FNS and the Labor Inspectorate Look At
An employment relationship is a relationship based on an agreement for the employee to personally perform a labor function for pay, in the interests of, under the direction and control of the employer, subject to the internal work regulations, with the employer providing working conditions (Article 15(1) of the Labor Code). Concluding civil-law contracts that in fact govern an employment relationship between employee and employer is expressly not permitted (Article 15(2) of the Labor Code).
According to the FNS’s clarification (Letter No. AB-4-20/13183@ of 16 September 2021), substitution of an employment relationship with a contract with a self-employed person is indicated by the contractor’s organizational and infrastructural dependence on the client, as well as a procedure for paying for and recording services similar to that for employment. A more detailed list of such indicators was given by a regional FNS office in a publication from the same year, 2021 (archived) — it is not exhaustive and is used specifically as a clarification by the tax service, without the status of a separate legal provision.
| Indicator | Why it is dangerous | What to do |
|---|---|---|
| Registration as an NPD payer is a condition set by the client itself | Shows that the relationship was built as employment from the start but formalized through a tax regime | Don’t make NPD registration a condition for starting work; frame the contract around a specific result |
| The client sets the work schedule, routes, or tasks and monitors their performance through its own employee | This is direction and control — part of the definition of an employment relationship under Article 15 of the Labor Code | Don’t include a schedule, routes, or subordination to the instructions of a specific client employee in the contract |
| The contractor works with the client’s equipment and materials, in the client’s workwear, and undergoes its mandatory training or certifications | Infrastructural dependence — a sign that working conditions are provided by the client, as an employer does | Assign a task to deliver a result; don’t provide permanent equipment, workwear, or corporate training |
| Periodic fixed payment that does not depend on the volume or the fact of work performed | This is a sign of pay for labor over a period, characteristic specifically of a salary | Tie payment to an acceptance certificate for a specific result |
| One client is the contractor’s sole or main source of income over a long period | Matches the conditions of the Mintrud risk indicator (section below) and the dependence indicator | Don’t build the cooperation on exclusivity; take the indicator into account separately |
| The subject of the contract is an ongoing function or process instead of a specific task with a result | A labor function within the meaning of Article 15 of the Labor Code, performed on a regular basis, is a direct sign | Describe the subject of the contract through a specific result and acceptance by certificate |
The Mintrud Risk Indicator in 2026: 35 Contractors and a 75% Share
Since 10 January 2026, a new version of item 8 of the list of indicators of the risk of violating labor legislation has been in effect (Mintrud Order No. 685n of 8 December 2025, which amended the list approved by Order No. 838n of 30 November 2021). Grounds for an unscheduled inspection by the labor inspectorate arise when four conditions are met simultaneously: the client deals with more than 35 NPD payers, and each of them meets the following conditions at once — average monthly income from this client of more than ₽35,000, a working relationship with it lasting more than three months, and a share of income from it of 75% or more.
Before this version, the threshold was different: Mintrud Order No. 640n of 28 November 2024 introduced the same item with an income share of 90% and a condition on the average duration of work — without tying it to each individual contractor. The wording with the 90% threshold found online has been outdated since 10 January 2026.
The indicator by itself is a reason for the supervisory authority to pay attention to the client when planning inspections; it is not an established violation. Triggering the indicator affects the decision on a control measure and does not by itself entail liability.
A different mechanism operates separately from the risk indicator. Since 16 February 2026, Mintrud Order No. 657n of 19 November 2025 has changed the list of information that tax authorities transmit to the regional interdepartmental commissions for combating illegal employment and to Rostrud bodies: in addition to the threshold for former employees already mentioned, the FNS now also transmits information about organizations dealing with more than 35 NPD payers with income from them of over ₽35,000 per month and a cooperation period of more than three months, without reference to the income share. This order creates no new obligations for the client: it only defines the composition of the information the FNS passes on.
The two orders serve different purposes, and they should not be confused: No. 685n is the threshold for the risk indicator of the State Labor Inspectorate (GIT), with an income share; No. 657n is the threshold for transmitting information to the interdepartmental commissions (MVK) and Rostrud, and the second item of that order is specifically about former employees, without an income share.
Who Recognizes the Relationship as Employment, and From What Date
The law assigns recognition of a relationship that arose under a civil-law contract as an employment relationship to two parties.
| Who | How |
|---|---|
| The client itself | On the contractor’s written application and/or on an order of a state labor inspector to remedy a violation of Article 15(2) of the Labor Code that has not been appealed in court |
| State Labor Inspectorate | Does not itself recognize the relationship as employment: it issues an order to the client or refers the materials to court |
| Court | On the contractor’s claim or on materials from the GIT and other bodies with the relevant powers; after the relationship has ended — the only possible option |
Irremediable doubts in such disputes are interpreted in favor of recognizing the relationship as employment (Article 19.1(3) of the Labor Code). The count is retroactive: a relationship recognized as employment is deemed to have arisen from the day the contractor was actually admitted to work, regardless of the date of the decision itself (Article 19.1(4) of the Labor Code) — this date is taken as the basis for calculating all of the client’s subsequent obligations.
What the Company Will Be Charged and What Fines Apply
If the relationship is recognized as employment or the payment otherwise does not fall under NPD, several types of liability arise for the company at once.
The company is required to calculate, withhold, and pay NDFL as a tax agent (Article 226(1) of the Tax Code of the Russian Federation), withholding the tax directly upon actual payment of the income (Article 226(4) of the Tax Code). Insurance contributions are charged separately — payments to individuals both within employment relationships and under civil-law contracts for the performance of work and the provision of services are recognized as subject to contributions (Article 420(1) of the Tax Code).
For failure to withhold or transfer NDFL on time, a tax agent faces a fine of 20% of the amount not withheld or not transferred (Article 123(1) of the Tax Code). For non-payment of contributions due to understating the base or other incorrect calculation — 20% of the unpaid amount, and if the violation is intentional — 40% (Article 122(1) and (3) of the Tax Code). In addition, late-payment interest (peni) accrues for each calendar day of delay (Article 75 of the Tax Code); the specific rate is set by law separately and is not given in this article.
Administrative liability under Article 5.27 of the Code of Administrative Offenses of the Russian Federation applies separately for evading the formalization of, or improperly formalizing, an employment contract, or for concluding a civil-law contract that in fact governs an employment relationship.
| Part | Violation | Citizens | Officials | IPs | Legal entities |
|---|---|---|---|---|---|
| Part 4 | Evading the formalization of or improperly formalizing an employment contract, or concluding a civil-law contract that in fact governs an employment relationship | — | ₽10,000–20,000 | ₽5,000–10,000 | ₽50,000–100,000 |
| Part 5 | Repeat commission of a violation under Part 3 or Part 4 of this article | ₽5,000 | Disqualification for 1–3 years | ₽30,000–40,000 | ₽100,000–200,000 |
A violation is considered repeated if it is committed by a person who has already been penalized under the same article — from the moment the ruling enters into force until one year has passed from the day its execution ended (Article 4.6(1) of the Administrative Offenses Code).
According to one FNS publication, a client that discovers signs of a disguised employment relationship is recommended to correct the situation on its own by filing amended returns and calculations, without waiting for an audit.
The Self-Employed Person’s Receipt: Deadlines, Details, and What Happens Without It
With each settlement, the self-employed person is required to transmit information to the tax authority, generate a receipt, and ensure that it is transmitted to the client — through the “My Tax” (Moy Nalog) app, an electronic platform operator, or an authorized credit institution (Article 14(1) of 422-FZ). The transmission deadline depends on the method of settlement: for cash or electronic means of payment — at the time of settlement; for other non-cash settlements — no later than the 9th day of the month following the month of settlement (Article 14(3)).
The receipt is transmitted electronically — to the client’s phone or email, or by scanning a QR code — or on paper (Article 14(4)–(5)). The mandatory details include the date and time of settlement, the full name and TIN (INN, the Russian taxpayer identification number) of the self-employed person, an indication that NPD is being applied, the name of the services or work, the amount, and the unique receipt number; the TIN of a client that is an organization or IP is shown on the receipt, but it is the client itself that is required to provide it to the self-employed person (Article 14(6)).
Without a receipt, the company does not receive the exemption from insurance contributions for a payment to a self-employed individual who is not an IP (Article 15(1) of 422-FZ) and is not entitled to recognize the expense — this applies to corporate income tax, USN, ESKhN, and an IP’s NDFL (Article 15(8)–(10)).
The self-employed person is entitled to cancel transmitted information in two cases: when money received as payment is returned to the client, or when there was an error in the original data entry (Article 8(4) of 422-FZ). According to the FNS’s clarification (Letter No. PA-4-20/15213@ of 28 October 2021), cancellation of a receipt without an actual refund to the client does not in itself deprive the client of the right to recognize the expense; such a cancellation may give rise to tax control in respect of the self-employed person themselves, and the client is entitled to apply to the tax authority with documents on the actual sale and payment.
Whether information about a specific settlement was actually transmitted to the FNS system can be checked using the QR code on the receipt and the unique record number — the law expressly classifies these details as mandatory (Article 14(6), items 9 and 12).
Checking Status Before Each Payment
The official FNS service “Check the Status of an NPD Taxpayer” is free: it has two mandatory fields — the contractor’s TIN and the date for which the status is needed. The mandatory date field is the key detail here: the service answers for the selected date specifically, and the service’s application programming interface works the same way — the query date parameter is mandatory in every request. Hence the practical conclusion: status should be checked as of the date of each specific payment — separately before each payment, repeatedly, throughout the entire cooperation.
For bulk checks, keep in mind the limitation on programmatic access: no more than two requests per minute from one IP address.
| What the service checks | Result |
|---|---|
| Whether the person is an NPD payer on the selected date | Yes — specifically on that date, not just “as of today” |
| Reasons and dates of registration or deregistration | No |
| Whether the contractor was the client’s employee less than two years ago | No |
| Signs of an employment relationship in the contract or in practice | No |
| Whether a receipt was issued for a specific payment and whether it has been canceled | No |
| Whether the contractor’s type of activity is permitted under Article 4(2) | No |
The service page itself explains that when working with an NPD payer, there is no need to withhold NDFL or charge insurance contributions on the remuneration. This is true with the caveats from the sections above: the exemption from contributions also requires a receipt, and the exemption from NDFL requires that the income itself be recognized as an object of NPD taxation, which is not the case for a former employer within two years, regardless of the status shown in the service.
The right to apply NPD is deemed lost from the day the grounds preventing its application arise — regardless of when this became known or was recorded (Article 5(19) of 422-FZ). Deregistration takes place on the contractor’s own application via “My Tax” — from the date the application is sent — or on the tax authority’s initiative if it has received information about the loss of the right. The practical conclusion is that the status in the service reflects the fact of registration at the time of the response but does not rule out that grounds for losing the right have already arisen and are not yet reflected.
The “Self-Employed Status” check in NeuroVision confirms a person’s registration as a professional income tax payer according to FNS data — by Russian passport or TIN, from ₽5 per check.
If the contractor works as a partner of a marketplace or another platform, the procedure for checking their status is covered separately in Checking Sellers and Partners on Marketplaces Under 289-FZ, in the section on what information is checked for a legal entity, an individual entrepreneur, and a self-employed person.
How to Work With a Self-Employed Person: A Client’s Checklist
1. Before the Contract — Check the Restrictions and the History of the Relationship
Check the contractor’s type of activity and circumstances against the list in Article 4(2) of 422-FZ, including that they have no employees with whom they are in an employment relationship — this is broader than a formalized employment contract and includes actual admission to work (Article 16(3) of the Labor Code). Separately, find out whether this person was a staff employee of the company less than two years ago — if so, income under the future contract will not be an object of NPD taxation regardless of how it is worded.
2. In the Contract — a Specific Result, Not an Ongoing Function
Describe the subject of the contract through a specific result or task, confirmed by an acceptance certificate. Don’t include in the contract text or in working practice the elements from the indicators table above: a work schedule, subordination to the instructions of a specific client employee, periodic payment “like a salary.”
3. Before Each Payment — Status as of the Payment Date
Repeat the NPD payer status check as of the date of the specific payment — a check when the contract is concluded is not enough for this. It is worth saving the check result: the law does not require this, but it makes it easier to demonstrate good faith in a dispute.
4. After Payment — a Receipt on Time
Monitor the receipt transmission deadline and give the contractor your TIN for inclusion on the receipt — this obligation is assigned specifically to the client.
5. Once a Quarter — Compare Against the Indicator Thresholds
Compare the number of NPD contractors, their income from the company, and the duration of cooperation against the thresholds of the Mintrud indicator (35 contractors, a 75% share) and of the transmission of information on former employees (10 contractors, income over ₽25,000).
Provisions are given as amended as of 19 October 2026: 422-FZ, the Tax Code, and the Administrative Offenses Code — version of 4 August 2026; the Labor Code — version of 25 May 2026.
Full exemption from NDFL and contributions and the right to recognize the expense when working with a self-employed person rest on three conditions being met simultaneously: the contractor’s income is an object of NPD taxation, there is a receipt, and the relationship is not in fact employment. If the income ceases to be an object of NPD taxation, the company becomes a tax agent for NDFL and a payer of contributions on a general basis, and where there are signs of an employment relationship, liability under Article 5.27 of the Administrative Offenses Code is added; if the only issue is a missing receipt, NDFL is not affected — the exemption from contributions and the right to recognize the expense are lost.
Former employees and contractors who resemble staff employees by the indicators in Article 15 of the Labor Code require particular attention — both cases came directly into the sights of the FNS and Mintrud in 2026. The practical way to reduce risk is to check NPD payer status regularly, as of the date of each payment, and periodically compare the cooperation against the current thresholds and indicators: a one-time check at the start of work is not enough for this.
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