Newly created small and medium scale enterprises will be entitled not to pay taxes starting from April 1, 2020
The President of the Russian Federation has signed the law, that relieves small and medium-sized businesses from paying taxes in 2020. This measure has been adopted in the framework of dealing with the consequences of coronavirus infection spread.
What is required to be relieved from paying taxes?
- company shall be included in the list of small and medium scale enterprises;
- company shall be founded within the period from December 1, 2018 to February 29, 2020;
- company shall be involved in the most affected area of the economy.
This preference at the moment is only available to the companies from the most affected areas of economy that were included in the list of SMEs on the basis of financial statements for 2018.
Thus, legislative amendments will enable the companies which have been created recently to obtain tax preferences which were unavailable to them previously. Meanwhile, this support measure applies to legally binding relationships that appeared since April 1, 2020.