The regime applies to organizations and individual entrepreneurs working under the simplified taxation system (STS). It provides exemption from paying insurance contributions (pension, social and medical insurance), but increases the tax burden. Thus, for companies and individual entrepreneurs working
- on simplified tax system “income” – the tax rate on receipts will increase from 6% to 8%;
- on STS “incomes minus expenses” – the tax rate on profits will increase from 15% to 20%.
The bill provides for an increase of the minimum tax on annual revenues from 1% to 3% for businesses with the regime of “income minus expenses”.
Also under the new bill regions will not be able to reduce the rate, as in the base version of the simplified tax system. If the new tax regime proves to be popular and effective, it will be applied to all small businesses starting from January 1, 2024.