Unprecedented State Support

Deputies adopted the law in the final reading that provides support for both economic agents and citizens. Individual entrepreneurs suffered the most from the introduction of the state of emergency. These are small enterprises that operate in the provision of services and trade. They either fell under the direct effect of the decree on the state of emergency, or were forced to suspend their work in connection with decisions taken by the state.

For those who work in enterprises covered by the decree on the state of emergency, a zero rate on income tax is established. It was decided that in case of late payment of utility bills, penalties will not be charged. Enterprises that provide services will not disconnect the consumer from this service due to late payment. Poor citizens whose children received free meals at school and kindergarten will be able to get food packages. This norm will be valid for the duration of the emergency. A set of products and their list will be developed by the Ministry of Social Protection together with the Government. Another measure of support concerns those citizens who were unemployed for the period of emergency and were registered at the employment center. If the period of their status has come to an end during this period, then they automatically extend this period until the end of the emergency.

In case of the expiration of various documents, this period will be extended until the end of the emergency regime. This can be a registration certificate, a driver’s license, business licenses and other permits. All patent payments to individual entrepreneurs will be recalculated. Individual entrepreneurs who have come under the influence of emergency can apply to the employment center from the moment an emergency occurs for registration. They are entitled to receive unemployment benefits in the amount of one minimum wage. This is 1647 rubles.

Small businesses of up to 50 people whose activities have been suspended are entitled to apply for state subsidies. The state takes half of the minimum wage payment, which small and medium-sized businesses will pay their employees.

Commercial banks will help economic agents who want to get a loan to pay salaries to their employees. The Government assumes the obligation to subsidize interest rates to commercial banks in the amount of 10%. There are limitations. These are enterprises whose turnover at the end of the year does not exceed 10 million rubles.

Large economic agents, which previously used state support in the form of subsidized loans aimed at the development of production, will be able to get a deferment in paying interest and the main body for a period of up to 6 months.

Enterprises of the transport industry reduced income tax rate to 2%. Light industry enterprises that operate on tolling will be reduced the rate of income tax on tolling scheme with a coefficient of 1.05.

The deadlines for tax or statistical reporting will be extended. Economic agents will be exempted from tax on losses based on the results of 2020. For the duration of the emergency, control measures, both planned and unscheduled, will be canceled.