According to The Federal law as of July 24, 2009 N 212-FZ “On Insurance Contributions to the Pension Fund of the Russian Federation, Social Security Fund of the Russian Federation, Federal Medical Insurance Fund of the Russian Federation and Territorial Medical Insurance Funds” that has been passed by the State Duma, the Unified social tax (UST) shall be replaced from the year 2010 with insurance contributions to particular types of social security to be paid to four separate non-budgetary funds.

By this law:

(A) it is established an order of calculation and payment of insurance contributions to the Pension Fund of the Russian Federation (re. obligatory pension insurance), to the Social Security Fund of the Russian Federation (re. obligatory social insurance in the case of temporary incapacity and maternity), to the Federal and Territory Medical Insurance Funds;

(B) it is determined the payers of insurance contributions, an object of taxation by the insurance contributions, calculation basis, rates, estimated period and period of report, an order of introduction of changes into the calculation of insurance contributions, an order of collection of arrears in case of non-payment or partial payment of insurance contributions.

In 2009 the current procedures of calculation and payment of the Unified social tax remain unchanged.
The proposed rates of the insurance contributions in the years 2009, 2010 and 2011:
 

2009	2010	2011
UST Rates applied to the yearly payments to each individual: The sum is not exceeding RUR 280 000 – 26%. The sum RUR from 280 001 to  600 000 – RUR 72 800 + 10% of the amount exceeding RUR 280 000 The sum more than RUR 600 000 – RUR 104 800 + 2% of the amount of exceeding RUR 600 000	Insurance contribution to the Pension Fund – 20%	Insurance contribution to the Pension Fund – 26%
	Insurance contribution to the  Social Security Fund  – 2,9%	Insurance contribution to the  Social Security Fund – 2,9%
	Insurance contribution to the Federal Medical Insurance Fund – 1,1%	Insurance contribution to the Federal Medical Insurance Fund – 2,1%
	Insurance contribution to the Territorial Medical Insurance Funds – 2%	Insurance contribution to the â Territorial Medical Insurance Funds – 3%

Thus since 2010 the transition to insurance contributions is planned, however the rates will be reserved on the level of currently operating UST rates, applied on the first regression’s threshold. Since 2011 the tax burden will be increased from 26% to 34% of labour compensation fund.

It should be noted that for some categories of tax payers (e.g. agricultural producers, residents of technical and innovation special economic zones (areas), payers of unified agricultural tax, public organization of disabled persons etc.) the reduced rates of insurance contributions during 2011-2014 shall be provided.

The base for charging the insurance contributions will be determined in regard to each employee cumulatively from the beginning of the report year and will not exceed RUR 415 000 (aprox. USD 13 300 or EUR 9 300) – this sum to be adjusted according to the index. The insurance contributions will not be imposed from sum of payments that exceed the mentioned range. Whereby, the unemployment benefit, the benefit for temporary loss of capacity to labour, the confinement grant and the benefit in connection with birth of child as well as some others benefits will not be included in the base for tax charging.

The control over payment of the insurance contributions will be carried out by the Pension Fund of the Russian Federation, Social Security Fund of the Russian Federation and their Territorial authorities. The Territorial authorities will be authorized to conduct field tax audit simultaneously. The control authorities will also be liable for losses caused to the tax payers.

The Federal Law will come into force on January 1, 2010 (except for separate provisions that go into force in alternative order), however the Federal Law is not signed to date by the President of the Russian Federation.