Russia Freelancer — NPD / 3-NDFL Return

Establish the client's INN (12-digit individual taxpayer number), SNILS, residency status, and annual revenue forecast. Determine whether the client qualifies for the NPD self-employed regime (Nalog na Professional'ny Dokhod), USN (simplified system), or must use the general OSNO regime with 3-NDFL and NDS obligations. The NPD regime is available to individuals earning up to RUB 2,400,000 per year who do not hire employees.

If the client qualifies for NPD, register them via the Moy Nalog (Мой налог) mobile app or the FNS taxpayer personal account at lkfl2.nalog.ru. Confirm the tax rates applicable: 4% on income received from private individuals, 6% on income received from Russian legal entities and sole proprietors (IP). Generate the client's first professional income receipt (chek) in Moy Nalog to validate the setup. If the client is already registered as an IP (sole proprietor) on a different regime, document the transition procedure.

For each calendar month, record all professional income in Moy Nalog by the 9th of the following month. FNS automatically calculates the NPD liability and issues a payment notice (nalog) by the 12th of the following month; payment is due by the 28th. Verify the monthly income records match actual bank receipts or cash received. Flag any income that may fall outside the NPD scope (e.g., salary income, sale of personal property, dividends) — these are not subject to NPD and must be handled separately.

At year-end (or when the cumulative NPD income nears RUB 2,400,000), perform a threshold review. If the client has exceeded the NPD limit, they must deregister from NPD and file a 3-NDFL return (Form 3-NDFL) under OSNO for the excess income, or transition to USN (Упрощённая система) if registered as an IP. Document the excess income period and calculate NDFL at 13% (or 15% on income above RUB 5,000,000) on all income above the threshold. If the limit is not breached, confirm the client may continue under NPD in the next year.

If the client has income taxable under OSNO — whether due to exceeding the NPD limit, having employment or investment income, or operating as an IP under the general regime — prepare and file Form 3-NDFL via the FNS personal account (lkfl2.nalog.ru) or through a certified electronic reporting operator. Apply the correct NDFL rates: 13% on income up to RUB 5,000,000 and 15% on the portion above RUB 5,000,000 (for 2025 income; note progressive brackets effective from 2025 under Federal Law amendments). Claim all eligible professional deductions (professional'nye nalogovye vychety) for documented business expenses at either the actual amount or the 20% standard deduction.

Self-employed individuals operating under the NPD regime are fully exempt from NDS. However, if the client is registered as an IP on OSNO and their revenue exceeds the Article 145 exemption threshold (RUB 2,000,000 for three consecutive calendar months), they must register for NDS, issue schyot-faktury, maintain a Purchase Ledger (Kniga Pokupok) and Sales Ledger (Kniga Prodazh), and file the NDS declaration (Nalogovaya deklaratsiya po NDS) quarterly by the 25th of the month following the quarter, with payment in three equal installments by the 28th of each of the three following months. The standard NDS rate from 1 January 2026 is 22%.