The tax system of our state, like any other, is quite complex. And it provides not only to charge money, but also to provide temporary relief for small economic entities. This interaction mechanism is known as tax breaks for small businesses. What is he like? How was it legislated? On what period? And what are its features?
What is a small business tax vacation?
What are they? Tax breaks mean certain advantages for the business, according to which it is not subject to taxes. This mechanism is implemented to support the private sector, which produces goods in limited quantities.
Legislation
Legislative tax holidays for small businesses were formalized by federal law number 477-FZ. It says that from 10.01.2015 and 2020, a newly registered individual entrepreneur can use them. It should also be said that the law on tax holidays is not introduced on a mandatory basis throughout the Russian Federation. It states that local authorities can introduce them on their territory. A list of areas and facilities where tax holidays were introduced is at the end of the article. The conditions for their use of IP are as follows:
1. An individual entrepreneur must be registered for the first time in his life. From this we can conclude that simply closing your business, and then again it will not work.
2. Under the privileges, only three areas of work are included:
- Scientific . Carrying out activities that involve the development of new structures, tools or products.
- Social . This includes enterprises that operate in the public sphere.
- Production . Under this direction, activities are carried out, as a result of which products, raw materials or semi-finished products are ready for sale.
3. An individual entrepreneur will receive at least 70% of his income from activities that fall under the scope of tax holidays.
Scope of tax holidays
As already mentioned, tax holidays for small businesses can be started in only three directions. In the law itself they are spelled out in very general terms. Each type of activity concretizes regional laws, which prescribes what falls under these privileges. Also, in connection with these features, it turns out that in practice there are significant differences between different regions, where various types of entrepreneurial activity are subject to preferential taxation. And tax holidays for individual entrepreneurs vary or will vary depending on the region. This is a rather unpleasant side of this innovation.
Features that have a period of tax credits
The zero interest rate is valid from 2015 to 2020. But not enough to know about it, it is necessary to take into account several practical features:
- A new entrepreneur who opened an IP can get a vacation time of one or two tax periods. Therefore, a disappointing conclusion should be made: the period of exemption from taxes may not exceed two years. Moreover, the tax period is not always equal to one year. So, if the exemption was given to the company, which will be registered in March 2016, it will not be valid for 365 days, but until the end of 2016.
- Important is not only the moment of registration of the enterprise, but also the time when a regional law was adopted.
- How much tax holidays will be valid for small businesses, local authorities decide, which are limited by a certain framework. The minimum is one period, the maximum is two.
Where do tax holidays for business already work?
Now let's move on to the most interesting. The legislation itself does not introduce tax holidays for small businesses in the Russian Federation. Therefore, only regions can activate them. At the moment, they operate in:
- Chelyabinsk region.
- Khanty-Mansiysk Autonomous Okrug.
- Vladimir region.
As you can see, not very thick. Also, proposals have been made in a number of regions for adoption of the law. It:
- Arhangelsk region;
- Moscow;
- Moscow region;
- Republic of Bashkortostan;
- Yamal-Nenets Autonomous Okrug;
- Krasnodar region;
- Penza region;
- Sverdlovsk region;
- Saratov region;
- Stavropol region;
- Primorsky Krai;
- Tver region.
Here the situation is better, but there are several differences by region. So, in the Primorsky Territory, only a “simplified case” is considered, but there are no words about privileges on patents. However, there are exclusively standard classifications of activities that are subject to laws. Therefore, for comparison, consider what is offered in Moscow. In this city , a minimum of restrictions has been created for individual entrepreneurs , while different types of activity are covered as much as possible. From this point of view, tax holidays for entrepreneurs in Moscow look very attractive.
International practice
But what is going on in this area among our neighbors or in countries of far abroad? It should be said that the Russian Federation one of the last introduced the concept of tax holidays. So, in Ukraine for several years there have been widespread advantages for the information technology sector. And in countries such as Norway, the USA, France, Germany and a number of others, this mechanism is already an integral part of the functioning of the economy, through which the conditions for development in certain industries are created. It allows you to ensure ease of doing business in the event of a crisis, and also stimulates the population to open new IPs (and subsequently, possibly large organizations like companies, enterprises or even corporations). Therefore, it is not surprising that you can see the use of tax holidays all the time. At the same time, in some areas of the economy, state subsidies are also carried out with them (the study of the situation of agriculture in France deserves attention). But to us, in view of the difficult economic situation, this is still a long way off.
Conclusion
As you can see, tax incentives are a very useful tool that is beginning to be applied in our state. Therefore, if you want to do your own business on a small scale, it is worth exploring the aspects of
individual entrepreneurship in more detail, and then moving forward towards your goal. Indeed, given the constantly decreasing state reserves, it is logical to assume that this broad gesture can be canceled in a few years.