Tax status and the right to spend income are different matters. First establish whether your bankruptcy is as an ordinary citizen or a registered sole trader, then coordinate contracts, receipts and necessary costs with the financial manager.
NPD eligibility and Article 6 of Law No. 422-FZ, plus Article 216 of the Bankruptcy Law, rechecked on 21 October 2026. This guide concerns court bankruptcy in Russia; the conclusions depend on your procedural stage and legal status.
Can you remain self-employed during bankruptcy?
An individual without sole-trader status is not subject to a general ban on the professional income tax regime (NPD) merely because of personal bankruptcy. Both tax eligibility rules and restrictions on dealing with estate property must still be observed. Registration in the app does not mean that all revenue is yours to spend freely.
The Federal Tax Service explains NPD eligibility: qualifying individuals and sole traders can use the regime, with a RUB 2.4 million annual limit on relevant income. Not every activity qualifies. Check Federal Law No. 422-FZ before starting a new line of work.
Article 216 of the Bankruptcy Law provides for termination of sole-trader registration when bankruptcy and asset realization are ordered. Completion of realization, or termination of the case during that stage, triggers five-year restrictions on fresh sole-trader registration and entrepreneurial activity. Paragraph 5 contains a special exception reflected in the court order. Do not treat NPD as a way around these restrictions.
Can NPD be combined with an employment contract?
Employment and separate qualifying NPD orders can in principle coexist. Salary is not subject to NPD. Payments for work or services under a civil contract from your current employer, or a former employer whose employment relationship ended less than two years ago, are also outside the NPD tax object. These distinctions follow from Federal Law No. 422-FZ, Article 6(2)(1) and (8).
| Receipt | Check | Evidence for the case |
|---|---|---|
| Salary under an employment contract | Do not record it as NPD income | Payslip and statement |
| A qualifying order paid by an independent customer | Check regime eligibility, contract and tax receipt | Order records, receipt and payment |
| Work or services paid for by a current or recent former employer | Establish the employment relationship and end date; do not apply NPD to that payment | Employment and civil contracts, termination and payment records |
Disclose both sources of money in bankruptcy. Different tax treatments or multiple payers do not themselves create multiple protected amounts for the same period. See the salary guide for payment arrangements. Restrictions following sole-trader bankruptcy must be assessed independently of whether a tax receipt can be issued.
What to check before continuing work
| Record | What to establish | Why it matters |
|---|---|---|
| Court order | The case stage, debtor status and restrictions. | Do not apply post-completion rules to ongoing proceedings. |
| Sole-trader register | Whether and when sole-trader registration existed or ended. | Distinguish NPD without registration as a sole trader from sole-trader bankruptcy. |
| My Tax certificate | Whether NPD tax registration remains active. | Confirm the tax status itself. |
| Contracts and statements | Purpose and timing of receipts, including advances and refunds. | Agree transparent working arrangements. |
What happens to self-employment income?
During realization, property acquired after the procedure starts generally also enters the estate. The financial manager exercises rights over estate property; protected property is excluded through the prescribed process under Article 213.25. Client income must therefore be disclosed alongside other receipts.
Discuss the payment account, contract arrangements, tax payments and justified fulfilment costs in advance. If materials, equipment hire or platform fees are necessary, provide a calculation and evidence. You cannot independently deduct any expense from estate funds merely by calling it a business cost.
Keep records in four steps
Match each order, receipt and payment
Keep a register showing date, customer, purpose, amount, tax receipt number and bank transaction. Record cash receipts too: the payment method does not make income invisible.
Identify advances and refunds separately
Retain the contract, cancellation correspondence and proof of refund. Do not replace actual transactions with convenient transfer descriptions.
Prepare a necessary-cost plan
List costs essential to completing each order and supporting records. Agree the legal arrangements with the manager before taking on a new commitment, especially during realization.
Check tax and living funds
Provide My Tax assessments and payment confirmations. Track the protected amounts released for living expenses separately: they are not the same as total revenue.
A detailed document list and ledger template are available in the NPD documents guide. Use it to reconcile records; it does not determine permission to continue working or spend estate funds.
Must NPD still be paid during the case?
Bankruptcy does not cancel tax accounting for new activity. Old tax arrears and fresh assessments require separate analysis. The general definition of current payments concerns obligations arising after the court accepts the bankruptcy petition, not simply when a tax amount appears in an app: see Article 5 of the Bankruptcy Law.
Prepare the tax period, income date, assessment and due date for review. Do not assume every tax charge will automatically be discharged with old loans. Agree payment arrangements before new arrears arise.
Example: revenue is not freely available cash
Customers pay RUB 80,000 in a month. The contractor plans to spend RUB 20,000 on materials and retain everything else. That calculation is insufficient in bankruptcy: income, necessary costs, tax assessments and the release of funds must be documented and addressed. Even receipts for materials do not themselves authorise free allocation of the remaining RUB 60,000.
Frequently asked questions
Can I register in My Tax after bankruptcy?
Article 213.30 does not impose a separate general NPD ban on an ordinary citizen. If you were bankrupt as a sole trader, first check Article 216 and the final court order. Successful app registration is not a substitute for that assessment.
Can customers pay a relative’s card?
Do not use another person’s account to conceal revenue. Disclose the real source and receipt method to the manager and agree client payment arrangements in advance.
Must I deregister from NPD when there are temporarily no orders?
The Tax Service explains that a period without income does not generate a fixed minimum NPD payment. This does not cancel previous arrears or permit activity prohibited by law or a court order.
Related issues: employment salary during bankruptcy and protected payments. Legislative sources are in Russian.
Need your self-employment arrangements checked?
A consultation can review sole-trader and NPD status, court restrictions, contracts and income arrangements. Whether activity can continue depends on the documents.
Book an initial consultation