Companies will be allowed not to file tax declarations
Within national project «Small and medium-sized entrepreneurship and support of sole entrepreneurship initiative» the Ministry of Finance of Russia has proposed a draft law on amendments to the Russian Tax Code. Currently these amendments are being considered by the Russian Parliament. The amendments are aimed to mitigate business activity of small and medium-sized businesses which use simplified tax system (STS). Companies will not have to file tax declarations, and tax authority will calculate the tax amount based on information about calculations made.
As known, Russian legal entities, as well as individual entrepreneurs, can choose one of the existing taxation systems: general or simplified. The simplified system or STS is suitable for representatives of small and medium-sized businesses and assumes that organization meets the set of certain criteria, such as: number of employees (no more than 100 people); profit margin (not more than 150 million rubles), etc. The general tax rate on income is 6%.
Currently, companies are required to annually submit to the Federal Tax Service (FTS) a set of documents including tax declaration, balance sheet, personal income tax certificates and other documents established by the FTS list. Thus, new initiative to amend tax law focuses on eliminating need to file tax declarations with the FTS to those companies that meet established criteria. The tax authority independently calculates tax amount based on calculations made by cash register equipment of the company. Notifications about amount of tax will be sent through personal online account.