Family business – new for Russian law

Minister of Economic Development of Russia announced that the term “family business” may appear in Russian legislation. It will be the next step of small business development in Russia, which will give some entrepreneurs an opportunity to make their business activity legal.

At the first stage of reform, only entrepreneurs, who do not hire any employees, are planned to be included into the category of family business.

Special tax regime will be introduced for this type of employment. Such regime will not require submitting any accounting or tax reports. It will be enough to establish the fact of sales. Single preferential tax rate will be imposed: 4% tax rate will be levied on the sales of goods and services for individuals, 6% tax rate – for organizations.

Since this initiative has not been submitted to the Russian Parliament yet, a lot of amendments are expected to be made. However, it is already obvious that this proposal is going to improve conditions for running a small business in Russia.