THE RATES OF SIMPLIFIED TAXATION SYSTEM CAN BE REDUCED

Russian State Duma considers draft law providing reduction of simplified taxation tax rates:tax base is income, the rate is set at 3% (currently 6%).tax base is income minus expenses, the tax rate is set at 8% (currently 15%).Also, average number of employees shouldnt exceed 150 people (currently 100 people).Furthermore, the draft law contains another amendment that company or entrepreneur can use simplified taxation system if income wont exceed 90 million Rubles for the first 9 months of the year.It is expected that reduction of tax rates will stimulate the further development of small and medium business in Russia.If approved, the law will come into force on January,01 2017.