In 2014, the law on tax holidays, expected by many entrepreneurs, was passed. As a result, new entrepreneurs will have the right to not pay taxes for one or two years. Can the new law become a powerful incentive for the development of entrepreneurship in Russia? Or is it doomed to failure because of its inherent flaws?
The essence of the tax holiday law
Tax holidays are provided for newly registered individual entrepreneurs for the period from 2015 to 2020. The government has not yet gone beyond the indicated time frame, since not ready to predict business conditions for the specified intervals.
At the same time, individual entrepreneurs should not conduct business in the past. There are no mentions of other representatives of small business, in particular, companies on the simplified tax system, in the law.
It should be noted that the law is not obligatory for application throughout the territory of the Russian Federation. The regions themselves have the right to establish the "rules of the game" for new individual entrepreneurs and can decide whether or not to introduce tax holidays for them. They also may not introduce a two-year vacation, but limit themselves to a year.
The incentives for the adoption of the law were:
- The mass closure of individual entrepreneurs in 2013, which was a response to a two-fold increase in insurance premiums to the Pension Fund of the Russian Federation. As a result, instead of the planned increase in pension receipts, they decreased significantly. At the same time, some of the entrepreneurs continued to operate illegally. It is assumed that the adoption of the law will be able to return part of the IP to the legal field.
- Small business can become a driver of economic growth. State support is especially important for small enterprises in the current crisis conditions.
- According to the government, it is in the first two years that the foundations of the business are laid. Many new individual entrepreneurs do not yet have a safety margin, do not withstand the tax burden and are closing. Therefore, it is believed that tax holidays are designed to "extend the life" of a new business.
Who will receive tax holidays
In the period until 2020, the regions can set a tax rate of 0% for individual entrepreneurs on the simplified tax system or on the basis of a patent. The specified rate may not apply to all of the specified representatives of small businesses, but only to those who carry out industrial, social or scientific activities.
Regions can choose the types of activities that fall under the benefits in accordance with OKUN or OKVED. To maintain the benefits, it is necessary that the income from these types of business is at least 70%. When combining various types of activities, you will need to keep separate records.
Regional laws may also establish additional restrictions on the application of a zero tax rate individual entrepreneur. Including the average number of employees and the marginal amount of revenue.
Disadvantages of Tax Holidays Act
A number of shortcomings of the law on tax holidays casts doubt on the fact that the law can really become a large-scale measure of business support. Thus, it extends its effect only to a small segment of entrepreneurs.
The law does not solve the main problem that led to the mass closure of individual entrepreneurs, namely, high insurance premiums in the PFR will remain. Tax holidays do not apply to them. The fact that insurance premiums are paid to the FIU even in the absence of profit can stop many from registering a small business in the form of an individual entrepreneur. Therefore, until the amount of insurance premiums is revised, a significant increase in the number of individual entrepreneurs should not be expected.
At the same time, many representatives of small business could not have paid the single tax of the simplified tax system anyway, because it could be reduced by paid insurance premiums to the FIU. In this case, the meaning of the tax holidays is lost.
It should be noted that not all regions will agree to establish a zero rate. After all, this promises a shortfall in income to regional and municipal budgets. And the issue of their occupancy is especially acute during periods of crisis. It is expected that the law will introduce no more than 20% of the regions.
