On the threshold of 2025, amendments to the Federal Law «On Advertising» were adopted. The approved law introduces deductions for the distribution of advertising on the Internet and will take effect from April 1, 2025. Alexey Stanchin, Head of Tax Compliance practice Alexey Stanchin analyzed the innovations in the article of EZh-Jurist. 

Who now needs to pay these deductions? 

Payers, in accordance with the law, are recognized as advertising distributors and operators of advertising systems, which are engaged in the distribution of advertising on the Internet, aimed at attracting the attention of advertising consumers located in the territory of the Russian Federation.

Amount of deductions or rate

The amount of deductions is 3% of the calculation base. 

The calculation base is analogous to the tax base? 

The calculation base, according to the law, means the income received during the quarter by advertising distributors or advertising system operators. At the same time, the law does not specify what exactly is meant by income for the purposes of calculating the compulsory payment - revenue or profit. 

Moment of recognition of income

The law does not establish the moment at which income from the distribution of advertising should be recognized for the purposes of imposing compulsory deductions. Drawing an analogy with tax legislation, it can be said that the law does not establish what method (cash or accrual) to recognize income. 

Calculation of payment

At the same time, based on the text of the law, it is not clear whether the calculation will be similar to the land, property and transport tax for individuals, or whether the payers will independently calculate the payment

Administration and control

Roskomnadzor will monitor the completeness and timeliness of payment of mandatory contributions.

Given that it is not yet clear what exactly is meant by income, it can be assumed that Roskomnadzor will not have sufficient information to independently calculate the relevant deductions.

Obligation to bear the obligations of a payer for another person - analogy of a tax agent? 

Special attention should be paid to the fact that a Russian advertiser (legal entity, individual entrepreneur, individual) who has concluded a contract for the distribution of advertising on the Internet with a foreign legal entity (foreign citizen, stateless person) is recognized as a person who is obliged to calculate and withhold compulsory deductions from the funds paid to the foreigner. In such a case, the Russian advertiser is obliged to inform the foreigner about the transfer of compulsory deductions to the budget.

Drawing an analogy with the tax legislation, we can conclude that the above scheme in its essence is very similar to the obligation of a tax agent. The main difference is that an individual cannot be an agent for income tax or an agent for VAT, which is different from the agency of deductions for the distribution of advertising on the Internet. 

To summarize

Based on the results of the analysis of the law, it is noticeable that deductions for advertising distribution are similar to a tax in essence and content, as the draft law defines general conditions for the establishment of taxes and fees in accordance with Article 17 of the Tax Code of the Russian Federation. Should we now expect corresponding changes in the tax legislation? There is no answer to this question yet. 

At the same time, some issues related to deductions for advertising distribution have not been finally settled. We can see gaps related to the possible absence of persons from the departments responsible for taxation among the developers.

The Tax Compliance team will continue to follow the development of legislation in the field of advertising.