Federal Tax Service working on new tax regime for small and medium business

The Federal Tax Service is considering a new tax regime for small and medium businesses, which would exempt entrepreneurs from the payment of insurance contributions. The absence of insurance payments will be compensated by a 4% increase in the business tax rate.

Representatives of the Federal Tax Service suggest that such innovations will enable entrepreneurs to decrease current expenses on accounting by reducing the number of reports and declarations to be submitted to state structures. They also mention the possibility of increasing the transparency of doing business by obtaining information directly from the taxpayer's bank.

However, the entrepreneurs will have to pay the increased tax every month, which will reduce the free cash of the company that can be used for development. Employees will have to take care of their own retirement savings. Discussion of the new taxation regime suggested by the Federal Tax Service begins in October.

Bellerage's tax specialists are ready to answer your questions. Please write us: russia@bellerage.com.