Charging humanitarian fee in Russia is enshrined in the new chapter 25.1.1 of the Russian National Code and deals with all distributors of advertising. These include (in accordance with article 3 38-FZ, paragraph 7, of 13.03. 2006) persons who distribute advertising “in any way, in any form and using any means”. Starting from 01.01.2021, every taxpayer in this service sector is obliged to calculate 5% quarterly from advertising revenue and no later than the 25th day of the month following the reporting quarter to pay this amount in the budget.
Who and how came up with this type of payment
The author of the bill No. 979423-7 — deputy from LDPR Sergey Ivanov. Discussing it in the DG, he stressed that the name reflects the target focus of the collection — to help the seriously ill in a difficult life situation: when the state cannot provide for the person expensive treatment he needs.
The initiators of charging payment from distributors of advertising were guided by the following:
- According to the experts of the Association of communication agencies of the Russian Federation, the total volume of advertising in its distribution means more than 480 billion rubles per year. The annual amount of contributions of 24 billion in the Russian budget is not superfluous.
- Attention of authors of the idea attracted advertising activity of top YouTube bloggers, owners of popular sites and groups in social networks, whose income is often far from taxation.
- The 5% rate is taken not arbitrarily, but based on the following. This share of airtime (as well as printed area, outdoor structures, etc.) should be reserved for social advertising. Production and distribution of “socialka”, as prescribed by Art. 10 of the law 38-FZ, must be carried out through procurement of works and services under the contract system in the sphere of procurement to ensure state and municipal needs.$ But such promotional materials are “an extremely rare occurrence on television, radio, print and on the internet” (a quote from the explanatory note to the project). Therefore, it was decided to achieve the law abiding of advertising agents in another way — by imposing a mandatory 5% fee the income from their services.
It should be noted that the LDPR initiative was not supported by the government. There are two reasons:
- Strictly speaking, this payment does not correspond to the tax concept of the fee. In paragraph 2 of Article 8 of the Code of the Russian Federation, the fee is defined as a mandatory contribution charged to legal entities and individuals in two cases: when carrying out certain types of business activities within the territory, on where certain rights or permits (licenses) are granted to business entities.
- The target focus of the payment is not consistent with the principle of total (aggregate) budget.$ Spending of state funds is not linked to a certain type of income or source of financing of budget deficit, unless otherwise provided by the Budget Code.
What turns out “in a dry balance”
It is obvious that the conduct of humanitarian collection means an increase in the cost of print and electronic publications, pay TV channels, an increase in advertising budgets in the internet. It is not clear yet, the payer is only an advertising platform (for example, Yandex.Direct) or an advertising agency that has placed advertising here in the interests of the client? Most likely, in the end it will turn out that to the sum of the contract will make + 5 percent and pay the fee to the state all who are in the chain.
Taxpayers will certainly ensure that money is collected from the revenues of distributors and manufacturers of advertising. Those, in turn, will pledge that percentage in the cost of services provided to advertisers. Thus the humanitarian gathering “strikes” not the richest advertisers, but puts on the verge of survival small media, journalists in messengers, authors of podcasts and YouTube clips, owners of groups in social networks. Advertisers with low margins and heavily traffic-dependent are forced to withdraw from the market.
With regard to the highly paired name of the payment, questions arise:
- How the funds will be spent for good purposes declared by the proponents of Bill No. 979423-7, $ if according to the current norms all collected money falls into the general “budget boiler”?
- What needs to be done to ensure that, in addition to patrons and charitable foundations, the source of funding for Russian medicine to help people with serious and rare diseases became a “humanitarian gathering”?
And one more. We are unlikely to see changes regarding social advertising any time soon. Those who need it had no money for making and placing as well as no. So, there is still no opportunity to use the limit. Advertisers, puzzled by innovations, will still not rush to participate in tenders on public procurement in their sphere.