New special regime for SMEs starting from July 1, 2022

LEGAL DIGEST, NEWS \ 27.01.2022

The State Duma in the first reading adopted a bill establishing a new special tax regime for small businesses – an automated simplified taxation system.

If the amendments made are approved by the Federation Council and signed by the head of the state, then starting from July 1, 2022, such regions as Moscow, the Moscow and Kaluga regions, as well as the Republic of Tatarstan will be able to use this special regime as an experiment. In case of a successful experience in applying the special regime, other regions will also be able to switch to it from 2023.

Who can apply the special regime

The automated simplified taxation system (ASTS) can be used by individual entrepreneurs (IE) and organizations that meet the following conditions:

• The amount of income for the current calendar year is more than 60 million rubles;
• The average number of employees for the tax period is more than 5 people.

The following small business entities (SMEs) are not entitled to apply ASTS (even if the above conditions are met):

• organizations with branches and separate subdivisions;
• companies with a depreciated book value of fixed assets of more than 150,000,000 rubles;
• foreign organizations;
• organizations and individual entrepreneurs applying other taxation regimes provided for by the Tax Code of the Russian Federation;
• non-profit organizations;
• organizations and individual entrepreneurs that employ individuals – non-residents of the Russian Federation;
• firms and entrepreneurs who have a bank account that is not included in the list of authorized banks;
• payment of salaries to employees in cash;
• other companies and individual entrepreneurs listed in article 3 of the text of the bill. 

How to switch to a new special regime

The use of ASTS is the right of the company. To apply it, it is necessary to submit an application to the Federal Tax Service not later than December 31 of the calendar year preceding the year of transition to the special regime.

Newly established organizations through the taxpayer’s personal account should notify the tax authorities of the transition to a special regime not later than 30 calendar days from the date of registration. After switching to the ASTS, organizations are not entitled to switch to another taxation regime until the end of the calendar year.

At the same time, companies lose the right to use the ASTS from the beginning of the calendar month in which a violation of one of the conditions giving the right to use the ASTS was detected. In this case, it is also necessary to notify the Federal Tax Service through the taxpayer’s personal account not later than the 15th day of the month following the month of non-compliance with the requirements.

Which object of taxation can be chosen

The object of taxation of the ASTS are income and income reduced by the amount of expenses. The choice of an object is carried out by SMEs independently and can be changed by them annually. Rates for such objects are determined in the following order:

• 8% – with the object “income”;
• 20% – with the object “income minus expenses”;
• 3% – the minimum tax for ASTS “income minus expenses”.

What is the procedure for calculating and paying taxes?

The main advantage of the ASTS is the independent calculation of tax by the Federal Tax Service on the basis of information obtained from the main sources:

• cash register equipment (CRE) operating online;
• an authorized credit institution in which the company has a settlement account;
• personal account of the taxpayer, where information is entered that does not pass through the online CRE or settlement account.

The tax period is a calendar month. This means that the tax inspectorate, within 15 days after the end of the tax period, will notify the taxpayer of the tax base and the amount of tax payable, as well as notify banking institutions about the calculated tax with details for its transfer. The tax will be subject to payment to the budget not later than the 25th day of the second month following the expired tax period.

What companies are exempted from on the ASTS

When using the ASTS, companies are exempt from paying VAT, property tax and profits tax. Also, they are not required to submit reporting on income tax and insurance premiums to the Social Insurance Fund, information to the Pension Fund of Russia (depending on their type), and some statistical reporting.

Acsour closely monitors legislative changes in this area and will advise you on any issues that arise.