Small Business: Problems and Solutions

A round table on "Issues simplified tax system for small businesses" took place at the Supreme Council. Advisor to the Chairman of the Supreme Council for Economic Affairs, Alexander Martynov was in the role of organizer and moderator of the event. According to him, the meeting of representatives of the legislative and executive branches of government, business, practicing accountants and auditors will clarify and analyze the problems faced by entrepreneurs, to give preference to the simplified taxation system. First-hand received data will provide the impetus for the timely legislative response.

Special tax regimes aimed at reducing the tax burden on small businesses and facilitate reporting was introduced in Pridnestrovie in 2012. Its base - is the imputed payment, the amount of which depends on the number of employees, but has nothing to do with financial performance. 350 organizations of the 5,000 work to date according to simplified system. The figure would be higher in case of greater awareness of accountants, according to participants of the round table. They often, because of their own ignorance, recommend to the head of the enterprise to be faithful to the standard form of taxes and management accounting. In addition, the simplified system is not suitable for all sectors of the economy. For example, this option is losing for trade and is beneficial for services sector, by contrast.

Entrepreneurs, aware of the situation from inside, offered to make some adjustments to the existing rules. The Law "On the simplified taxation system" was developed in 2011 in circumstances other than today. According to businessmen, it is necessary to reconsider the size of presumptive payment.

They paid attention to another important aspect - administrative barriers. It is often more difficult to overcome them than financial difficulties and economic obstacles. With regard to specific problems: to date as a basic element in calculating the amount of payment the imputed cost of living is used, which is known to be changed periodically. Minor fluctuations entail little perceptible from the material point of view, the growth of tax payments, and the administrative problems generates significant.

A part of the meeting was devoted to stated in the title of the round table topic narrow profile pros and cons of the simplified tax system. The discussion was smoothly transformed into the general economic problems and the situation of the business entities of the Republic. Participants of the event said that entrepreneurs need support in the current crisis conditions. At least that they can do – is to simplify and reduce reporting by removing detailed a breakdown in accounting documents. The issue of public administration costs was mentioned. Tax revenues from small businesses, unfortunately, are small, and the costs associated with the control of their activities, are significant.

Summarizing the round table it was decided to hold additional meetings to discuss specific issues raised in the framework of today's debate.