The tax burden on workforce is too heavy, Russian Minister of Finance Anton Siluanov admitted.
The Ministry of Finance is thinking about ways to reduce the tax burden, the minister said. However, before doing so, they need to find other sources that could compensate for the shortfall of the social security contributions paid by employers.
According to Anton Siluanov, the 30% social security (insurance) contributions companies pay with respect to each employee as well as the 13% personal income tax employees pay is indeed too much, compared with other countries. In Russia, employers have to shoulder the bulk of the tax burden. This is the reason they often choose to use shadow schemes of registering their workers, the minister emphasized in an interview with RBC.
Siluanov added that so far, the ministry has not yet drafted legislation that could change this situation.