Omsk region has established new tax incentives for businesses

Today, on May 21, the regional parliament considered two draft laws on tax benefits for businesses, developed as part of the regional anti–crisis plan, on property tax and on a simplified taxation system.

On April 2, Omsk Region Governor Alexander Burkov approved the regional Government's anti-crisis plan, which aims to offset the negative effects of the coronavirus pandemic on the region's economy. The plan includes more than 50 events, including a package of business tax preferences. Four draft laws on tax benefits for business entities have been prepared, two of which have already been adopted at the plenary session of the Legislative Assembly on April 23, and the laws have entered into force. This is a law on reducing the cost of a patent by 10 times in 2020. This change is aimed at supporting microbusiness and applies to all types of activities for which the patent taxation system can be applied. The law providing for exemption from payment of transport tax for organizations and individual entrepreneurs engaged in passenger transportation was also approved by the deputy corps and entered into force. The transport tax for airport enterprises, as well as preschool and educational organizations, was reduced by 2 times.

Today, in two readings, the Legislative Assembly of the Omsk region adopted a law on setting the minimum possible rates under the simplified taxation system – 1% and 5%.

"The draft laws were discussed with the parliamentary corps and business. Many suggestions were made. The regional government considered each of them from the perspective of the maximum possible business preferences. Our task is to take maximum measures to help businesses now and in the future to get the region's economy out of a difficult situation. According to estimates, more than 4 thousand business entities can benefit from the benefits of the simplified taxation system. The law includes various sectors of the economy. It is part of the manufacturing industries, hotels and catering, education, healthcare, social, consumer services, sports and leisure activities. Moreover, according to the proposals of business associations, an additional assessment was carried out of a number of economic activities that are not currently included in the list of affected industries. We saw in them the potential risks of a worsening situation – many may stop working, unable to cope with the burden of obligations. And they included construction, leasing of non-residential property, the IT industry and a number of socially oriented areas in the bill. Thus, the law takes into account 38 types of economic activity," explains Anna Negoduiko, Deputy Minister of Economy of the Omsk Region.

By the way, the reduced tax rates under the STS are applied by taxpayers upon receipt of at least 70% of income from one of the types of economic activity provided for by law.

The regional parliament also adopted in two readings a draft law on the establishment of a reduced property tax rate for 2020 in the amount of 1.1% for certain categories of taxpayers.

The regional Ministry of Economy clarifies that the tax benefits will apply for the whole of 2020. In total, the volume of support for four draft laws is estimated at one billion rubles.

"This is the first package, and we are additionally working on proposals that we will be able to make in the fall. We will continue monitoring the situation during the spring and summer. Depending on the changing external conditions, we will make changes to the laws," concluded Anna Negoduiko.