The offset of expenses on IPG at the expense of insurance premiums

LEGAL DIGEST, NEWS \ 03.08.2020

The Ministry of Labour has updated the list of preventive measures, the expenses on which the employer will be entitled to reimburse at the expense of insurance premiums for traumatism. According to the data from Ministry of Labour, the amount of compensation will be 20% of the amount of insurance premiums for traumatism that were accrued for 2019.

The above list includes expenses for the implementation of measures to prevent the spread of coronavirus infection, namely:

• purchase of individual protective gear (referred to below as IPG) for respiratory organs (face masks), as well as face shields, shoe covers, gloves, etc.;
• purchase of disinfecting wipes, skin antiseptics for hand treatment and dosage devices for them;
• purchase of devices and disinfecting agents for comprehensive treatment of vehicles, transport package of materials, equipment, office premises, contact surfaces;
• purchase of devices for contactless monitoring of the employee’s body temperature;
• conducting a laboratory examination of employees on COVID-19.

To justify the financial coverage of these measures, the employer should submit the following set of documents to the territorial bodies of the Social Insurance Service (referred to below as SIS) by October 1, 2020 (previously by August 1):

• statement;
• plan of preventive measures drawn up in form approved by the Order No. 580n of the Ministry of Labour dated December 10,  2012;
• documents confirming expenses on preventing the spread of coronavirus infection.

Examples of supporting documents are represented in the table below.

The term for consideration of documents by the SIS bodies is between 10 and 15 working days from when the full set of documents was received. The decision is drawn up by an order and sent to the organization within 3 working days after its making.

Please be reminded that organizations are entitled to include the following types of expenses in the profits tax base as other expenses:

• purchase of IPG and collective protective equipment;
• purchase of test systems for diagnostics of a new coronavirus infection;
• purchase of medical goods, the list of which was approved by the Decree No. 714 of the Government dated May 21, 2020;
• payment for services for conducting of testing for a new coronavirus infection and employees’ immunity to it. You can read more about the recognizing of such expenses for profit taxation purposes in the article on the website.

Document: Federal law No. 121-FZ dated April 22, 2020, Order No. 365n of the Ministry of Labour dated June 23, 2020, Letter No. SD-4-3/10479 of the Federal Tax Service of Russia dated June 29, 2020, Order No. 581n of the Ministry of Health of the Russian Federation dated June 15, 2020, Letter No. 03-03-06/1/54256 of the Ministry of Finance dated June 23, 2020.