SIMPLIFIED TAX SYSTEM FOR SMALL AND MEDIUM-SIZED ENTREPRENEURSHIP WILL BE EXTENDED

A simplified tax system (STS) is valid for the small and medium-sized businesses and is designed to simplify the process of paying taxes.

In accordance with the tax legislation, the application of the simplified tax system requires a compliance with a number of criteria, such as the number of employees as well as the revenues raised.

The proposal of the Government is to provide small and medium-sized businesses with the opportunity to further use the simplified tax system, even if the maximum possible indicators for such a tax regime have been exceeded.

In particular, in the case of an increase in the staff of up to 130 people or income from the results of the tax period to 200 million rubles, the taxpayer will nevertheless be entitled to use the simplified tax system. However, the rates for the excess period will be slightly higher.

For the object of taxation, the "income" rate will rise from 6% to 8%, and for the "income minus expenses" it will raise from 15% to 20%.

After the excess returns to the acceptable levels, the rates will be lowered back to the standard ones.

The Government suggests that the measure will help create the most favorable conditions for the emergence and development of business in Russia. The further fate of the changes will have to be decided by the State Duma of the Russian Federation.