Tax holidays for small businesses

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The tax system of our state, like any other, is quite complex. And it provides not only to collect money, but also to give temporary relief to small economic entities. This interaction mechanism is known as the small business tax holiday. What does he represent? How was it legalized? On what period? And what are its features?

What is a tax holiday for small businesses?

What are they? Tax holidays are understood as certain advantages for 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.

Legislative registration

Legislatively, tax holidays for small businesses were formalized by federal law No. 477-FZ. It states that from 2015-10-01 until 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 theirterritory. The list of areas and objects where tax holidays have been 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 opening it again will not work.

2. Only three areas of work fall under the benefits:

• Scientific. Carrying out activities that involve the development of new designs, tools or products.
• Social. This includes businesses that operate in the public sphere.
• Production. This direction includes carrying out activities, 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 their income from activities that fall under the tax holidays.

Fields of application of tax holidays

As already mentioned, small business tax holidays can only be started in three ways. In the law itself, they are spelled out in very general terms. Each type of activity is specified by regional laws, which prescribe what falls under these benefits. Also, in connection with these features, it turns out that in practice there are significant differences between different regions, where various types of business activities are subject to preferential taxation. And tax holidays for individual entrepreneursvary or will vary by region. This is a rather unpleasant side of this innovation.

Features that the tax break period has

Zero interest rate valid from 2015 to 2020. But it is not enough to know about it, it is necessary to take into account several practical features:

1. A new entrepreneur who opened an IP can receive vacation time of one or two tax periods. Therefore, a disappointing conclusion should be drawn: the period of exemption from taxes cannot exceed two years. However, the tax period is not always equal to one year. So, if an exemption was given to an enterprise that will be registered in March 2016, it will not be valid for 365 days, but until the end of 2016.
2. It is important not only the moment of registration of the enterprise, but also the time when the regional law was adopted.
3. How long the tax holidays for small businesses will be, local authorities decide, which are limited to certain limits. Minimum - one period, maximum - two.

Where do business tax holidays 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 the territory:

1. Chelyabinsk region.
2. Khanty-Mansi Autonomous Okrug.
3. Vladimir region.

As you can see, not very thick. Proposals have also been made in a number of regions for the adoption of a law. This is:

1. Arkhangelsk Region;
2. Moscow;
3. Moscow region;
4. Republic of Bashkortostan;
5. Yamalo-Nenets Autonomous Okrug;
6. Krasnodar Territory;
7. Penza region;
8. Sverdlovsk region;
9. Saratov region;
10. Stavropol Territory;
11. Primorsky Territory;
12. Tver region.

The situation is already better here, but there are several differences by region. So, in the Primorsky Territory, only "simplification" is considered, but there are no words about privileges for patents. At the same time, there are only standard classifications of activities that are subject to laws. Therefore, for comparison, we can consider what is offered in Moscow. In this city, a minimum of restrictions has been created for individual entrepreneurs, while various types of activities are covered as much as possible. From this point of view, tax holidays for individual entrepreneurs in Moscow look very attractive.

International practice

And what is happening in this area with our neighbors or in far-abroad countries? It should be said that the Russian Federation was one of the last to introduce the concept of tax holidays. For example, in Ukraine, for several years now, there have been broad benefits for the information technology sector. And in such countries 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 conditions are created for development in certain sectors. It allows you to ensure ease of doing business in the event of a crisis, and also encourages the population to open new individual entrepreneurs (and later, 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 along with them (the study of the situation of agriculture in France deserves attention). But we, due to the difficult economic situation, are still far from that.

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 start your own business on a small scale, it is worth studying the aspects of sole proprietorship in more detail, and then move forward towards your goal. After all, given the ever-decreasing reserves of the state, it is logical to assume that this grand gesture can be canceled in a few years.