New Initiative by Liberal Democrats: Abolish Taxes for Specific Categories of Taxpayers
Due to pandemic revenues of most businesses, both big and small companies, have decreased up to 73% if compared to the pre-crisis situation. Moreover, one of the preferential tax treatments – UTII, was abolished in 2021.
What exactly can be changed?
To compensate for the negative effect caused by COVID-19 and the related crisis and support the local business, LDPR deputies have developed an initiative aimed to extend the number of entrepreneurs who can apply simplified and patent taxation systems.
In more detail
The draft bill was introduced in State Duma 15 of March, and the explanatory note states:
· Admit Patent taxation system to legal entities;
· Change criteria for applying Patent Taxation System – increase the number of employees up to 50 (currently 15). The draft bill also suggests raising the annual revenue to 150 mln. RUB (currently 60 mln. rub.).
· Entitle the RF regions to establish a 4 % rate for Simplified Taxation System in 2021 for all or specific categories of taxpayers.
The reaction to this initiative
As parliamentarians consider, this law will minimize the bankruptcy risks for small and medium businesses. Entrepreneurs could invest the saved money to keep jobs and preserve employment.
The majority of entrepreneurs support this initiative, although some have the opposite opinion: they consider this law can lead to unequal support of some businesses since the whole economy has suffered from the crisis. Another fear is this law can activate unfair practices. Some taxpayers can use it for crushing the firms to pay fewer taxes.