97% of micro businesses are not ready to switch to a new tax regime

Most micro-business companies are not ready to switch to a new tax regime – the automated simplified taxation system (ASTL) – due to high tax rates and non-compliance with the eligibility criteria. This is reported RBC with reference to the results of a survey by the Aktion Accounting service among more than 400 firms in all regions of the Russian Federation.

97% of respondents expressed their unwillingness to switch to AUSN. 39% called the new tax regime disadvantageous due to high tax rates. More than 47% of respondents do not meet the formal criteria of the regime, such as income or number of employees.

Just like in the standard simplified taxation system (STS), taxpayers on AUTS can choose the object of taxation – “income” or “income reduced by the amount of expenses”. However, the rates on the AUTS are higher than on the regular simplified tax system, and amount to 8% and 20% (on the simplified tax system – 6% and 15%).

13% of survey participants indicated their reason why they do not want to switch to a new tax system. The most popular options: “there is no trust in the IFTS, there are constant mistakes”, “we want to independently manage payments for taxes and fees”, “raw system”, “we want to see the practice”, “we don’t want to lose counterparties who work with VAT” , as well as “we have OSN (general taxation system)” and “satisfied with the simplified tax system”.

AUSN will work in Russia from January 1, 2023. When switching to AUSN, entrepreneurs are exempted from the obligation to submit reports to tax authorities and extra-budgetary funds. The benefits of the new system are automatic tax calculation and a significant reduction in reporting for small businesses. In particular, ten forms of tax reporting and reporting to funds are cancelled.

Read more about the new tax regime – in the material “Kommersant” “Small business is taken care of”.

Daria Erozbek