Automated Simplified Taxation System (ASTS): Why is it Beneficial for Businesses?
Starting from January 1, 2025, Russia will significantly expand the geographic application of the Automated Simplified Taxation System (ASTS). After a successful pilot project in Moscow, the Moscow and Kaluga regions, as well as Tatarstan since 2022, the Ministry of Finance is preparing a bill to extend ASTS across the entire country. This decision, based on positive feedback from the regions, will greatly simplify taxation for millions of entrepreneurs and organizations.
What is ASTS and Why is it Important?
ASTS is an innovative approach to taxation based on the automation of all processes.
Its main feature is the significant reduction of the tax burden and the elimination of cumbersome reporting requirements.
Entrepreneurs operating under ASTS are relieved of the need to calculate and pay taxes independently, as well as submit declarations to the Federal Tax Service (FTS) and the Social Fund.
Tax authorities automatically calculate the tax based on data obtained from cash registers, banks, and taxpayers’ personal accounts. This saves time and resources, allowing entrepreneurs to focus on growing their businesses.
Who Can Use ASTS?
ASTS is available to organizations and individual entrepreneurs whose total annual income does not exceed 60 million rubles.
There are also restrictions based on the type of activity and the number of employees. More precise information on the eligibility criteria for ASTS will be available after the adoption of the corresponding federal law and regional regulations.
Expansion of ASTS: New Regions and Prospects
The bill to expand ASTS includes adding the federal territory “Sirius” and the city called Baikonur to the experiment. The duration of the experiment will remain the same—until December 31, 2027. It is important to note that the introduction of ASTS in each region will be implemented through the adoption of regional laws, which will allow for consideration of local business specifics.
Advantages of ASTS:
– Minimal Reporting:
No need to submit numerous tax returns and reports.
– Automatic Tax Calculation:
Tax authorities independently calculate tax obligations.
– Exemption from Insurance Contributions:
Entrepreneurs are exempt from paying insurance contributions for themselves and their employees.
– Simplified Tax Administration:
Significant reduction in time and resources spent on tax procedures.
Conclusion
The expansion of ASTS is an important step toward creating more favorable conditions for the development of small and medium-sized businesses in Russia. Simplifying taxation will allow entrepreneurs to focus on key business tasks, contributing to the overall growth of the country’s economy. It is essential to monitor the adoption of the bill and regional regulations closely to stay informed about all changes and take advantage of the benefits of ASTS.
