Since 2015 installed two base limits to calculate insurance premiums:
1) for the Pension Fund of Russia - 711,000 rubles.
2) for the Social Insurance Fund - 670,000 rubles.

To the employee of Svetly Put LLC from the beginning 2015 year, a salary was accrued in the amount of 680,000 rubles.
At the same time, he also performed work under a contract, the remuneration amount for which was 70,000 rubles.
Let us determine the basis for calculating contributions to each fund and the amount of contributions itself. Pension Fund.
Contributions to the Pension Fund of the Russian Federation at a rate of 30 percent are assessed on employee income not exceeding 711,000 rubles.
From the excess, that is, from an amount equal to 39,000 rubles. (680,000 + 70,000 – 711,000), you must pay contributions at a rate of 10 percent.
In total, pension contributions will be accrued in the amount of 217,200 rubles. (RUB 711,000 x 30% + RUB 39,000 x 10%). FFOMS.
Contributions are assessed on all payments made to employees.
That is, the base for this employee will be 750,000 rubles. (680,000 + 70,000).
The amount of contributions will be equal to 38,250 rubles. (RUB 750,000 x 5.1%). FSS.
Payments under a civil law agreement are not included in the contribution base to the Social Insurance Fund.
That is, 70,000 rubles. are not subject to contributions.
Exceeding the salary limit in the amount of 10,000 rubles is also not subject to contributions. (680,000 – 670,000).
The accrued amount of contributions will be 19,430 rubles. (RUB 670,000 x 2.9%). Trauma.
Limit for Social Insurance Fund = 670 thousand rubles. NOT applies to injury contributions
(these contributions are paid on all payments, as before, there is no limit for them).

The DECISION comes into force on January 1, 2011.

When setting up accruals to funds, you must follow the procedure outlined below.

1.1. Directories “Category codes of the insured person” and “Tariff codes of insurance premium payers”.

In the “Deductions to funds” mode, new reference books “Category codes of the insured person” and “Tariff codes of insurance premium payers” have been added.

Directory “Tariff codes for insurance premium payers”

To create a new entry, use the “F4” function key, to edit it use the “Enter” function key, and to delete an entry use the “F8” function key.

1.2. Tariff tables

"Tariff tables", according to which insurance contributions to extra-budgetary funds are calculated, are filled out in the “Creation of directories” – “Deductions to funds” – “Tariff tables”.

Attention! Tariff tables must be configured for all funds.

Insurance premium rates for different categories of taxpayers applied in 2011

	Pension Fund	Health Insurance Fund	Social Insurance Fund	amount of contributions
For persons born in 1966 and older	For persons born in 1967 and younger
Insurance part	Insurance part	Cumulative part
For organizations using the general regime
For payers using the simplified tax system, payers transferred to UTII
Organizations operating in the field of media
for public organizations of disabled people, for organizations whose authorized capital consists entirely of contributions from public organizations of disabled people, for payers of insurance premiums making payments and other rewards to individuals who are disabled people of group I, II or III,
For payers using the unified agricultural tax, agricultural producers
For organizations with resident status of a technology innovation zone, organizations developing and implementing computer programs, databases
Business societies created after August 13, 2009 by budgetary scientific institutions in accordance with 127-FZ
Organizations developing and implementing computer programs and databases

Setting examples Tariff tables.

1.3. Betting tables.

Betting tables, by which insurance premiums are calculated for the fund code, are filled out in the mode “Formation of directories” – “Deductions to funds” – “Tables of rates”.

Since in 2010 only insurance contributions are accrued for payments and remunerations of employees, in the new Table of bets indicates the range of the tax base for calculating contributions and links to "Tariff tables".

Attention! Rate tables are customizable for all funds.

For example,

1.4. Setting up charges to funds

The settings for accruals to funds have changed.

For Betting tables, according to which insurance premiums are calculated in the general manner and Betting tables, according to which insurance premiums are calculated for persons with disabilities, fields have been added

"Rate code"

The values ​​for these fields are selected from the directories, respectively, “Rate codes of insurance premium payers” and “Category codes of the insured person” using the “F2: Directory” function key.

29

To determine the period for which the insurance premium is calculated at a reduced rate for persons with disabilities, a parameter has been added

“The right to a reduced tariff ends in the month of the “Certificate Period” date”

The parameter was added to implement the recommendations of the Letter of the Ministry of Health and Social Development of Russia “On the procedure for determining the moment of emergence of the right to apply reduced rates of insurance premiums by an organization that has disabled employees” No. 000−19 dated 01.01.2001

The parameter “The right to a reduced tariff ends in the month of the date “Certificate period”” can take the following values:

"in the previous"

By default, for the parameter “The right to a reduced tariff ends in the month of the date “Certificate period””, the value is set to “YES”, i.e. the right to apply reduced rates of insurance premiums by an organization with disabled employees is valid until the period in which the validity period ends Inquiries

If for the parameter “The right to a reduced tariff ends in the month of the date “Certificate period”” the value is set to “previous”, then the right to apply reduced rates of insurance premiums by an organization that has disabled employees ends in the period preceding the month the Certificate is valid.

The parameter value can be changed using the space bar.

Attention! The letter from the Department for the Development of Social Insurance and State Security is not a normative legal act, but is of an informational and explanatory nature on the application of the legislation of the Russian Federation on insurance premiums.

It is recommended that the “Initial period” and “End period” parameters be filled in by organizations that have made the transition from a special taxation regime to a generally accepted one.

If the parameters are not specified, then by default for this fund, the “Initial period” is equal to the first period of the billing year, and the “End period” is equal to the last period of the billing year.

For example,

2. Setting up a fund for calculating contributions to social insurance against industrial accidents and occupational diseases

2.3. Setting up charges to funds

Attention! You can create new fund codes at any time, before the opening of a new accounting year. You can edit the settings of existing funds only after the closing of the last settlement period of the accounting year (in the inter-period).

Create a new type of deduction (“Types of accruals and deductions” - “Types of deductions”), for example, “FTS: Contribution for insurance against accidents”

For example,

Having completed all the necessary settings for types of deductions, accrual columns, diagnostics of algorithms, set up accruals to funds, for example,

Configure the base subject to insurance premiums.

Federal Law No. 125-FZ is supplemented with articles “20.1. The object of taxation of insurance premiums and the basis for calculating insurance premiums" and "20.2. Amounts not subject to insurance premiums.” The changes set out in Articles “20.1” and “Articles “20.2” brought the tax base for calculating contributions for social insurance against industrial accidents and occupational diseases closer to the base calculated in accordance with 212-FZ. In particular, since 2011, compensation for unused vacation, royalties, financial assistance in the amount of up to 4 thousand, financial assistance at the birth of a child up to 50 thousand are subject to taxation.

The types of accruals that form the basis for calculating contributions for insurance against industrial accidents must be included in the Accrual Column, which will later be indicated in setting up accruals to the funds.

For example:

3. Payments to funds .

Attention! Setting up Payments to funds is carried out only after the closing of the last period of the billing year and before the opening of a new billing period (new year).

When setting up payments to funds, it is enough to adjust the name of the payment for the new fund and the formula, assignment template for payments to the Federal Social Insurance Fund of the Russian Federation for accident insurance. In the setting formula, it is necessary to replace the parameter “S1” with the parameter “S3: insurance premium amount”.

For example:

4. Typical operations.

Attention! Setting up Standard Operations is performed only after the closing of the last period of the billing year and before the opening of a new billing period (new year).

In setting up standard operations “Calculations for social insurance (injuries)”, it is necessary to adjust the formula for calculating the amount: specify the parameter “S3: amount of insurance premium”.

For example:

5. Personal accounting cards (“Working with a card index”).

After the closing of the last period of the billing year and before the opening of a new billing period (new year), using the “Actions for the entire list of card index” mode (ALT-F10) of the “Operations” button in the register of personal cards, add a new deduction of the insurance premium to the accident insurance fund in production and occupational diseases: “Introducing permanent deductions for everyone.”

Open a new accounting year and calculate the employee’s personal account.

In the “Inquiry on Contributions” (ALT-N) mode, the “Help” button will show the calculation results:

Example of a Personal Account for an employee with a disability:

Or in “Social Data”. tax" (F5)

6. Algorithms “New Social” and “Insurance 2010”.

Currently, in the “Salary” application it is possible to use two types of special algorithms for calculating insurance contributions to extra-budgetary funds: "New Social" and "Insurance 2010".

Special algorithms for calculating insurance premiums take into account the specifics of calculating insurance premiums for organizations that apply general and special taxation regimes (different tariff rates) and make payments and other rewards to individuals who are disabled people of group I, II or III.

Features of special algorithms for calculating insurance premiums to extra-budgetary funds:

· “New social”. When calculating the tax base for insurance premiums for exceeding the limit in the fund setup, entries are grouped by withholding codes and rate table. It is allowed to use the special “New Social” algorithm if one Fund Code is configured to calculate contributions to an extra-budgetary fund. For example, an organization applies only a general taxation regime or only special taxation regimes in which income and remuneration are taxed at the same rates. That is, in setting up fund codes, identical Hold code And Bid table code.

· "Insurance 2010". When calculating the tax base subject to insurance premiums for exceeding the limit in the fund settings, records are grouped ONLY by withholding code. This allows you to set up two or more fund codes, for example, to calculate insurance contributions to the Pension Fund, for which employee income and remuneration should be subject to contributions at different tariff rates, but the total taxable base should not exceed the maximum value (for example, 463,000 rubles) .

Attention"! Organizations applying general and special taxation regimes must apply ONLY the special regime "Insurance 2010".

Insurance premium rate - the amount of insurance premium per unit of measurement of the base for calculating insurance premiums. Article 12 212-FZ establishes uniform rates of insurance premiums for all payers, unless otherwise provided by law:

Pension Fund of the Russian Federation - 26 percent;

Social Insurance Fund of the Russian Federation - 2.9 percent;

Federal Compulsory Health Insurance Fund – 5.1 percent.

Thus, the total tax pressure is 34 percent.

The law provides for a number of transition periods. Thus, in 2010, insurance premium rates remained at the level of the Unified Social Tax rates in force in 2009, and reduced rates for the Pension Fund were introduced for 2012-2013. Changes in insurance premium rates are presented in Table 4.3.

Table 4.3.

Insurance premium rates for the main category of payers

Period	Pension fund	Fund social insurance of the Russian Federation (FSS)	Fundscompulsory medicalinsurance		Total
			Federal (FFOMS)	Territorial (TFOMS)
(transition)

For a certain circle of insurance premium payers who paid UST at reduced, preferential rates, a gradual transition from preferential rates to generally established rates is provided for all categories of payers in accordance with articles 57(table 4.4.) and 58 212-FZ (table 4.5. – 4.8.).

Table 4.4.

Insurance premium rates for a special category of payers for 2011

				Compulsory Medical Insurance Fund		Total
				FFOMS	TFOMS
	Agricultural producers (who have not switched to the Unified Agricultural Tax); Organizations of folk arts and crafts; Family (tribal) communities of indigenous peoples of the North
	Organizations and entrepreneurs with resident status of the technology-innovation special economic zone "Skolkovo"; Organizations operating in the field of information technology (subject to special conditions)
	Organizations and entrepreneurs using the simplified tax system;
	Organizations and entrepreneurs paying UTII;
	Payers of insurance premiums making payments to individuals who are disabled people of groups I, II and III;
	Public organizations of disabled people, where disabled people make up at least 80%;
	Organizations with an authorized capital consisting of 100% of contributions from public organizations of disabled people (the average number of disabled people is at least 50%, the share of wages of disabled people in the payroll is at least 25%);
	Institutions created to achieve social goals, as well as to provide legal assistance to people with disabilities, disabled children and their parents, the only owners of whose property are public organizations of people with disabilities (taking into account the type of activity)
	Organizations and individual entrepreneurs using the Unified Agricultural Tax

For 2011 – 2014 for the categories of payers specified in paragraphs 1, 3.3., 3.4., 3.5. and 4 tables 4.4. The following reduced rates of insurance payments have been established (Table 4.5.)

From January 1, 2011, for the majority of insurance premium payers, there was a significant increase in insurance premium rates. In general, the tax burden on taxpayers will be 34%.

It is important that the innovations concern not only employers who are on the general taxation system, but also organizations that use the simplified tax system and UTII.

In 2011, Simplified residents can expect an increase in contributions to the Pension Fund from 14% to 26%. Also, organizations using special regimes, from January 1, 2011, are required to make payments to the Federal and Territorial Compulsory Medical Insurance Funds (3.1% and 2.0%), to the Social Insurance Fund of the Russian Federation (2.9%). Thus, the total burden on “simplified” workers increases from 14 to 34 percent.

	Pension Fund			Health Insurance Fund		Social Insurance Fund	Total Amount of contributions
	For persons born in 1966 and older	For persons born in 1967 and younger		FFOMS	TFOMS
	Insurance part	Insurance part	Cumulative part
General mode	26	20	6	3,1	2	2,9	34
Payers using the simplified tax system
Payers transferred to UTII
Organizations operating in the field of media (excluding advertising and erotica)	20	14	6	1,1	2	2,9	26
Organizations and individual entrepreneurs specified in Article 58 Part 1 Clause 8 212-FZ dated July 24, 2009 (as amended from December 28, 2010 N 432-FZ) *	18	12	6	3,1	2	2,9	26
Accruals for people with disabilities and public organizations of people with disabilities	16	10	6	1,1	1,2	1,9	20,2
Payers using Unified Agricultural Tax
Agricultural producers
Organizations with resident status of a technology innovation zone	8	2	6	2	2	2	14
Business societies created after August 13, 2009 by budgetary scientific institutions in accordance with 127-FZ
Organizations developing and implementing computer programs and databases

* for organizations and individual entrepreneurs using a simplified taxation system, the main type of economic activity (classified in accordance with the All-Russian Classifier of Types of Economic Activities) of which are:
a) food production;
b) production of mineral waters and other non-alcoholic drinks;
c) textile and clothing production;
d) production of leather, leather products and footwear production;
e) wood processing and production of wood products;
f) chemical production;
g) production of rubber and plastic products;
h) production of other non-metallic mineral products;
i) production of finished metal products;
j) production of machinery and equipment;
k) production of electrical equipment, electronic and optical equipment;
m) production of vehicles and equipment;
m) furniture production; o) production of sporting goods;
o) production of games and toys;
p) scientific research and development;
c) education;
r) health care and provision of social services;
s) activities of sports facilities;
t) other activities in the field of sports;
x) processing of secondary raw materials;
v) construction;
h) maintenance and repair of vehicles;
w) disposal of sewage, waste and similar activities;
y) auxiliary and additional transport activities;
z) provision of personal services;
e) production of cellulose, wood pulp, paper, cardboard and products made from them;
j) production of musical instruments;
i) production of various products not included in other groups;
z.1) repair of household products and personal items;
z.2) real estate management;
z.3) activities related to the production, distribution and screening of films;
z.4) activities of libraries, archives, club-type institutions (except for the activities of clubs);
z.5) activities of museums and protection of historical sites and buildings;
z.6) activities of botanical gardens, zoos and nature reserves;
z.7) activities related to the use of computer technology and information technology, with the exception of organizations and individual entrepreneurs specified in paragraphs 5 and 6 of this part

New insurance premium rates are in effect in 2011

In 2011, new rates for calculating insurance premiums are in effect. Moreover, the preferential tariffs provided for “simplified” and UTII have become invalid...

How to pay dues in the new year

Let us recall that, according to Federal Law No. 212-FZ of July 24, 2009, last year was a so-called transition period for trading companies. Companies applying the general tax regime assessed contributions at a total rate of 26 percent. But for those who applied the “simplified system” there were special rates of 0 percent for contributions to compulsory social insurance in case of emergency and compulsory insurance. Contributions to compulsory pension insurance of a company under special regimes were charged at a rate of 14 percent.

Since 2011, all companies making payments to individuals pay at general rates, regardless of (see table).

Tariffs for calculating insurance premiums by trade organizations in 2011

The basis for calculating insurance premiums must be determined separately for each individual from the beginning of the period at the end of each calendar month on an accrual basis.

If payments have not reached the limit (this year, according to Decree of the Government of the Russian Federation of November 27, 2010 No. 933, it is 463,000 rubles instead of the previous 415,000 rubles), then all accruals fall into the taxable base.

Insurance premiums are charged on remuneration to individuals under employment, copyright, licensing and civil law contracts (unless they are concluded with an entrepreneur, lawyer or notary).

At the same time, insurance premiums for disability and maternity are not charged to the Russian budget for amounts paid under civil, copyright and licensing agreements (Clause 2, Part 3, Article 9 of Law No. 212-FZ).

We also note that Federal Law No. 339-FZ of December 8, 2010 introduced changes to the procedure for reporting contributions.

In particular, it has now been established that calculations to the Pension Fund of the Russian Federation (for contributions to compulsory pension and health insurance) must be submitted no later than the 15th day of the second calendar month following the reporting period. Let us remind you that previously reports had to be submitted to the Pension Fund by the 1st of this month.

Calculations to the Federal Social Insurance Fund of Russia (for mandatory contributions in case of temporary disability and in connection with maternity) are now submitted no later than the 15th day of the month following the reporting period (and not before the 15th day of this month, as before).

What payments are taken into account when calculating contributions?

So, as a general rule, insurance premiums are charged on all payments to employees that are provided for either by the current collective agreement, agreement or local regulations of the employer.

Thus, insurance premiums are calculated:

1) for the amount of remuneration: wages, bonuses, allowances, etc.;

2) for material assistance secured by an employment (collective) agreement, except for the cases specified in paragraphs 3 and 11 of part 1 of Article 9 of Law No. 212 - Federal Law. This, in particular, is one-time financial assistance to employees upon the birth of a child. However, it cannot exceed 50,000 rubles. and must be paid during the first year of the child's life. As well as financial assistance in the amount of 4000 rubles. per person per calendar year;

3) for one-time bonuses, gifts (for example, for anniversaries, holidays), if they are mentioned in the labor (collective) agreement with the employee. Regarding this point, specialists from the Ministry of Health and Social Development of Russia, in letters dated August 13, 2010 No. 2640-19 and dated August 6, 2010 No. 2538-19, clarified the procedure for taxing certain payments with insurance premiums. Thus, contributions should be subject to payment by the organization for its employee of interest on non-targeted (taken for consumer purposes, and not specifically for the purchase or construction of housing), payment for the services of fitness centers for employees, as well as undocumented expenses and expenses for renting residential premises in business trip, compensation for the employee’s expenses for paying for services for his use of the airport’s VIP lounge.

According to the Ministry of Health and Social Development of Russia, payment of membership fees and amounts for obtaining accountant certificates is recognized as a payment in favor of employees within the framework of labor relations. This means that contributions must be calculated for these amounts (letter dated August 5, 2010 No. 2519-19). Officials also explained that compensation for the cost of renting housing paid to an employee who moved to another city to work in an organization should also be subject to contributions, since these amounts do not apply to reimbursement of the employee’s moving expenses.

Not all payments need to be taken into account

You can exclude from the taxable base those amounts of payments that are separately specified in Article 9 of Law No. 212-FZ. But not only. >|All types of legally established compensation payments (within the limits of the norms determined by the legislation of the Russian Federation) related, in particular, to the performance of work duties by an individual, including in connection with moving to work in another area (sub-clause “and” clause 2, part 1, article 9 of Law No. 212-FZ).|<

It should be noted that, based on the analysis of the norms of Part 1 of Article 7 of Law No. 212 - Federal Law, a number of other payments to an individual are not subject to insurance premiums.

Namely:

Accountable amounts issued to the employee for the purchase of material assets;

Financial assistance to family members of a deceased employee (letter of the Ministry of Health and Social Development of Russia dated March 1, 2010 No. 426-19);

Gifts to employees transferred by (letters of the Ministry of Health and Social Development of Russia dated August 12, 2010 No. 2622-19, dated August 6, 2010 No. 2538-19);

Payments to members of the board of directors by decision of the general meeting of shareholders (letters of the Ministry of Health and Social Development of Russia dated May 7, 2010 No. 1145-19, dated March 1, 2010 No. 421-19);

Payments under civil law contracts, the subject of which is the transfer of real rights to property, as well as under contracts for the transfer of property for use (Part 3 of Article 7 of Law No. 212-FZ). For example, these are payments for rent, loans, loans, etc. Moreover, if the employee’s debt is subsequently forgiven (in whole or in part), insurance premiums will have to be charged for the amount (letter of the Ministry of Health and Social Development of Russia dated May 21, 2010 No. 1283-19 ).

Remuneration in favor of a citizen (stateless person), if the amounts are paid to him: under an employment contract, according to which the person’s place of work is a separate division of a Russian organization outside the Russian Federation; under a civil contract for the performance of work or provision of services, the execution of which does not take place on the territory of the Russian Federation.

Next we note this point. Certain payments to employees related to the performance of state or socially significant duties, rather than labor duties, are not subject to insurance contributions. And also some social benefits.

Typically, such payments are not mentioned in the employment contract, but the trade organization is obliged to accrue them by force of law.

For example this:

Average earnings of donor employees for days of blood donation and days of rest in connection with this;

Average earnings during the employee’s conscription for military training;

Average earnings of working pregnant women for the days they undergo compulsory medical examination, etc.

Accounting

In accounting, the amounts of contributions are reflected in the corresponding subaccounts to account 69 “Calculations for social insurance and security”. For clarity, let's consider a specific example.

Example.

The trading company Solnyshko LLC calculated mandatory insurance premiums in January 2011. The amounts of calculated contributions are shown in Table 2.

Calculation of contributions assessed in January 2011

Job title	Employee's year of birth	Tax base for January, rub.	Contributions to the Pension Fund		Contributions to the Social Insurance Fund of Russia, rub.	Contributions to the Social Insurance Fund from accidents, rub.	Contributions to the FFOMS, rub.	Contributions to the Federal Compulsory Compulsory Medical Insurance Fund, rub..
			insurance part, rub.	savings part, rub.
Director
Chief Accountant
Sales Manager
Warehouse Manager
Employee under a civil contract

Let's look at the accounting entries:

DEBIT 44 CREDIT 70

275,000 rub. - accrued to employees;

DEBIT 44

CREDIT 69 subaccount “Calculations for insurance contributions for compulsory pension insurance for the insurance part of the pension”

66,400 rub. - contributions to the Pension Fund of the Russian Federation (insurance part of the pension) have been accrued;

DEBIT 44

CREDIT 69 subaccount “Calculations for insurance contributions for compulsory pension insurance for the funded part of the pension”

5100 rub. - contributions to the Pension Fund of the Russian Federation (the funded part of the pension) have been accrued;

DEBIT 44

CREDIT 69 subaccount “Calculations for insurance contributions to the Federal Compulsory Medical Insurance Fund”

8525 rub. - mandatory insurance contributions to the Federal Compulsory Health Insurance Fund have been accrued;

DEBIT 44

CREDIT 69 subaccount “Calculations for insurance contributions to the Federal Compulsory Compulsory Medical Insurance Fund”

5500 rub. - mandatory insurance contributions to the territorial compulsory health insurance fund have been accrued;

DEBIT 44

CREDIT 69 subaccount “Calculations for insurance premiums in case of temporary disability in the Federal Social Insurance Fund of Russia”

5800 rub. - contributions for compulsory social insurance in case of temporary disability and in connection with maternity in the Social Insurance Fund of Russia have been calculated;

DEBIT 44

CREDIT 69 subaccount “Calculations for insurance premiums to the Federal Social Insurance Fund of Russia against accidents”

400 rub. - contributions to the Federal Social Insurance Fund of Russia for insurance against accidents and occupational diseases have been accrued.

What if the company is in special mode?

In the event that a company operates on a simplified basis with the object “income”, it can take advantage of a tax deduction.

The calculated amount of tax (advance tax payments) can be reduced, including by the amount of mandatory insurance contributions paid (within amounts) for the same period of time (clause 3 of Article 346.21 of the Tax Code of the Russian Federation).

Officials also drew attention to this in a letter dated May 12, 2010 No. ШС-17-3/210. However, the amount of tax (advance tax payments) cannot be reduced by more than 50 percent.

Companies that have chosen the object of taxation “income minus expenses” take into account the same amounts of insurance premiums as part of tax expenses (within the limits of accrued amounts).

Remember: when overpaying contributions, only the accrued amount can be taken into account; in case of underpayment, the amounts actually paid are taken into account.

Based on the results of the tax period, companies on UTII reduce the “imputed” tax by the amount of insurance premiums calculated for the same quarter and actually paid by the time the UTII declaration was submitted to the tax authorities (clause 2 of Article 346.32 of the Tax Code of the Russian Federation). >>Even if on the date of filing the UTII return the company did not have time to pay insurance premiums, it does not lose the right to a tax deduction. To do this, you need to submit an updated declaration, reducing the calculated UTII by the amount of insurance premiums paid for the same tax period (letter dated July 22, 2009 No. 03-11-06/3/193).|<

At the same time, the amount of “imputed” tax also cannot be reduced by more than 50 percent.