Companies with simplified taxation system will be entitled to have branches. But not all of them

Russia plans to amend the procedure for the application of the simplified taxation system (USN) for organisations which have branches.

However, this proposal is being considered for non-profit organisations engaged in educational activities.

Currently, organisations with branches are prohibited from using the simplified taxation system, which creates difficulties and restrictions for business expansion. Such changes in the legislation could contribute to the development of small and medium-sized businesses by easing taxation conditions and simplifying accounting documentation.

According to the authors of the draft law, this change will save more money for non-profit organisations, and those, in turn, will be able to direct these funds to the development and improvement of the quality of education.

The explanatory note to the draft says that strengthening the financial sustainability of non-profit organisations through the transition to the simplified taxation system will help accelerate the improvement of the educational system.

This change may become an important step in supporting non-profit organisations working in the field of education and contribute to improving the conditions and quality of educational programmes. It is likely that such measures may become an impetus for the development of the educational system and contribute to its improvement in general.