23 October 2003 11:56
MINISTRY URGES CAUTION OVER HIGHER SIMPLIFIED TAX THRESHOLD
MOSCOW. Oct 23 (Interfax) - The simplified tax threshold for small businesses could be raised, but to no more than 25
million-30 million rubles from a current 15 million rubles in turnover, Anatoly Melnichenko, the tax ministry official
in charge of small business taxation, told reporters.
A small business would not be a small business if its turnover is higher than that, Melnichenko said.
The cabinet at its October 16 meeting looked at ways to support small businesses and heard proposals from the
anti-trust ministry and OPORA association of entrepreneurs to raise the upper threshold for companies joining the
simplified tax system.
He went on to say that although revenues from VAT and profits tax
have fallen, the drop was not too severe. However the shortfall in
But the relevant calculations were not submitted and ministries have been asked to this by December 1, Melnichenko
said.
He warned against rushing things, though, as the scope for abuse exists. Small businesses that have switched to the
new system do not pay tax on profits or VAT and are partially exempt from some of the unified social tax.
We are worried by the consequences of introducing such changes,' Melnichenko said.
social tax is more noticeable. The social tax shortfall was something like 5 billion-6 billion rubles, the VAT
shortfall 3 billion rubles and the profits tax shortfall a little lower in the first half of 2003.
So the threshold below which a small business is entitled to use the simplified system cannot be raised above 25
million-30 million rubles, otherwise the necessary criteria for small businesses would not be met.
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