PLANNING TO USE SIMPLIFIED TAX SYSTEM? NEW REQUIREMENTS IN 2017

Apr, 28 2017

To use simplified taxation system (STS), the company requires to meet a number of criteria, some of which have been significantly changed since January, 1 2017. To apply for STS it is required to file a notification before December 31, also, switching to a new tax regime is possible only from the next calendar year.

Criteria and requirements for applying simplified taxation system:

1. Limited income of the company
In 2016, the limit for amount of company’s income was 79.84 million rubles. Since 2017, annual turnover of a company applying for STS cannot exceed 150 million rubles. Otherwise, the company loses the right to use STS.

For those companies, which are planning to apply for STS, the limit of income is considered for 9 months instead of full calendar year. In 2017 this amount should not exceed 112.5 million rubles. In 2016, this limit was 59.8 million rubles.

2. Limited value of fixed assets of the company
Last year, acceptable value of fixed assets was 100 million rubles, however in 2017 the limit was increased to 150 million rubles.
If by the end of the reporting period or tax period this amount is higher than 150 million rubles, company shall switch to the general taxation regime from the beginning of the quarter when specified limit was exceeded.

3. Number of employees
The limited number of employees of a company using STS shall not exceed 100 people. However, new exist new draft law, according to which, the limit for number of employees may be increased to 150 people. We mentioned this issue on our website earlier: http://valen.moscow/the-rates-of-simplified-taxation-system-can-be-reduced/

4. Participants of the company
Other legal entity cannot participate in the authorized capital of a company applying for STS in the amount exceeding 25% of shares.

5. Branches and representative offices
STS cannot be used by companies that have branches and representative offices. So, if the company plans to develop business in other regions or countries, then switch to a general taxation regime is reguired.