Compensation for vacation in Russia: conditions for issuing and applying the law
The opportunity to relax in almost any countryworld, depending on financial capabilities and desires, appeared relatively recently. However, in recent years, the summer holiday area has sharply decreased: terrorism, fluctuations in the ruble exchange rate, sanctions from Western countries and other reasons make an increasing number of Russians willingly or unwittingly stay in Russia. At the same time, the options for proper rest (both beach and ski, active, sightseeing, family, and so on) in our country have increased significantly. But even this situation is not to the liking of all representatives of the Russian population.
Legislative changes
Unlike the era of the USSR, when isolation fromthe outside world was considered the rule, in modern Russia both society and the state are negatively related to this situation in the tourism sector. True, the society was divided: a part of the population was quite satisfied with the rest in domestic resorts, the rest fluctuated or still sought to go abroad.
The reaction to the current situation was changes.in the legislative field. A law was passed on holiday compensation in Russia. If employees go on vacation, prefer resorts in their homeland, the government can issue a refund for the rest. In this way, the governing apparatus is trying to attract as many tourists as possible to domestic tourism, since there are many fascinating places in Russia where you can go on family vacations, to young people or elderly people.
According to re-edited 255 and 270Articles of the Tax Code of the Russian Federation (law number on holiday compensation in Russia 8710366), from the beginning of 2016, Russians have the right to reimburse funds used to organize a holiday in Russia.
How is the procedure, what are the objectives of the new bill? About it further.
Objectives of the new bill
The draft law on compensation for holidays in Russia has been drafted since 2013. The document included several important provisions:
- Strengthening and development of domestic tourismbase. Despite the great opportunities (many historical monuments, beautiful and diverse nature), in Russia there are traditionally few tourists, both foreign and Russian.
- Further development of the social programsupport In modern Russia, more than 60% of residents cannot afford summer trips while on vacation due to lack of funds, which leads to social tensions.
- Improving the living standards of some social groupspopulation. Subject to a vacation in Russia, any Russian can receive cash in the amount of up to fifty thousand rubles per person. At the same time, a working family member pays income tax (13%).
Financial preferences
Among the expenses that can be compensated for the rest in Russia include:
- payment of transport;
- accommodation;
- food cost;
- excursion services.
Circle of persons claiming a refund
An employee of the company may receive compensation for the finances spent on holidays in Russia. Return money for recreation expenses:
- the employee himself;
- his spouse (spouse);
- minor family members;
- children studying full-time at a university and under the age of twenty-four;
- elderly parents.
Refund Procedure
There are two options for the return of compensation for the rest in Russia:
- Return of funds by the employer.
- Return of money by tax authorities.
It is important that all expenses must be documented. Therefore, you should keep all checks and tickets (for each family member), as well as enter into an agreement with a travel agency.
Return of funds by the employer
Money spent can be paid by the employer.vacationer. At the same time, in reporting, the company submits the costs of an employee’s vacation in Russia as an item of his own expenses. Such expenses must be officially conducted through the accounting department of the company where the employee works.
Cash disbursement by tax authorities
Otherwise, the compensation of funds spent onrest in Russia, is made by the tax service. The issuance of funds is on the way similar to the situation when it comes to buying real estate. The vacationer needs to visit the nearest tax structure and submit financial reports, which contain all the costs of rest. Documents need to attach and documentary evidence of costs (ticket from the tour operator, checks for payment of entertainment, tickets, and so on).
Citizen receives compensation in the form of taxdeduction. In most cases, the amount of compensation will correspond to the actual costs of vacation, but also the payment should not exceed fifty thousand rubles.
Compensation calculation example
For example, a family of four acquiredvacation vouchers. The cost of a voucher was 75 thousand rubles, so the family’s rest would cost 300 thousand rubles in total (75 x 4). Calculated compensation of 50 thousand for the rest in Russia per person (under the law). So, only 200 thousand rubles are subject to compensation.
After receiving compensation for rest in Russiathe employee is also obliged to pay a tax in the amount of thirteen percent of the amount of money returned for the release, i.e., twenty-six thousand rubles (200,000 x 13%). Thus, the actual spending on rest will amount to 126 thousand rubles, instead of the initial 300 thousand rubles. On one family member, the rest will cost 31.5 thousand rubles. It will be possible to save 43.5 thousand rubles for each family member or 174 thousand rubles for rest in general.
basic information
In summary, we point out that the tour packagemust be officially purchased at a travel agency, you should also keep all checks confirming payment of various services provided to guests during the trip by the hotel, travel agency, and so on.
Documents for all family members who spentleave with a reporting person, serves only one person. The return of funds is made simultaneously with the issuance of salary to the employee or in advance of the agreed order. The citizen who received compensation is also obliged to pay a tax of 13%.
The law on holiday compensation in Russia will not have retroactive effect. This means that the cost of holidays of previous years are not compensated, even with the necessary documents.
Employer Preferences
It is necessary to take into account the following nuance: According to the adopted bill, the employee’s employer is absolutely not obliged to reimburse the employee for vacation costs. He only got the opportunity to do it at will.
The decision to compensate for the rest in Russiausually accepted only after a rigorous analysis of the state of the budget of the company. For small businesses, agreements are provided to enable employers not to reimburse expenses for holidays in Russia. But for those campaigns whose financial condition makes it possible to return money for a holiday to their employee, the advantage is that, by agreeing to return the money spent to the holidaymaker, the company reduces the level of tax obligations. That is, the money spent by the reimbursement campaign for the retailer is included in the expenses.
Moreover, employers have legalopportunities to enter into agreements with travel agencies for the purchase of vouchers for their employees and close relatives. Thus, the price of travel for the company will decrease, since there are significant discounts for corporate clients in travel agencies. Such cooperation is useful and tour operators, and employers, and, of course, a vacationer and his relatives.
In the future, the adopted law will be clarified and clarified by the legislators.
Russia is a country with outstanding touristcapabilities that are currently underutilized. The introduction of the bill on compensation for holidays in Russia opens up significant opportunities to strengthen Russian tourism and adjacent areas of the economy. It is also expected to increase the number of jobs and increase the amount of monetary accruals to the state budget.
