Changes in the work of entrepreneurs under the simplified taxation system

Parliament voted to amend the law “Special tax regime – simplified taxation system”.

According to the Government’s proposal, individual entrepreneurs who operate under a simplified taxation system starting from the new year will be required to provide monthly information to the tax authorities by the 5th (fifth) day of the month following the reporting month on the movement of funds on current ruble and foreign currency accounts opened for carrying out business activities. This provision was enshrined as optional in the current version of the law.

As explained by the Chairman of the relevant Committee on Economic Policy, Budget and Finance Viktor Guzun, entrepreneurs who work under a simplified system can use several payment methods now. Data on transactions carried out through online cash desks is transmitted to the tax service almost in real time. The money is directed to the entrepreneur’s current account during payment using a plastic card or QR code. Banks will provide data on the movement of funds to the tax service in order to track all funds and correctly calculate the amount of taxes that will need to be paid.

An individual entrepreneur will not provide this data on his own, banks will take over these functions entirely.

Another change in the law provides for the mandatory payment of all tax payments if an entrepreneur plans to suspend his work for a period of more than 30 calendar days. This will need to be done within five calendar days from the date of contacting the tax service.

These changes will come into force from the new year.