In the Omsk region, minimum rates have been set for businesses under the simplified taxation system for three years.

The Minister of Economy of the region, Anna Negoduiko, presented the document at a meeting of the Legislative Assembly of the region. The law was prepared by the Omsk Ministry of Economy on behalf of Governor Alexander Burkov.

"It was important for me that businesses understand the tax conditions for a three-year period. The work on the law was difficult, and the discussions were not easy, as it was necessary to take into account the interests of entrepreneurs, the economy as a whole, and the budgetary component. We worked as a team and managed to find a "golden mean". As a result, the Ministry of Economy has prepared a bill on tax support for business," the Head of the region believesAlexander Burkov.

The law, which was supported by the deputies today, sets minimum rates for the simplified taxation system by the end of 2024: 1% for the taxable object "income" and 5% for the taxable object "income reduced by the amount of expenses".

Minimum rates can be applied by entrepreneurs who receive at least 70% of income from one of the types of economic activity listed in the law. "This approach has been used in the Omsk Region since 2020 and is aimed at objectively assessing business losses and supporting enterprises that are still recovering their financial performance. The measures that have been taken at the federal and regional levels have allowed businesses to remain, but many companies still need support. Tax breaks are the optimal solution. The law also covers priority areas of development, such as information technology, the creative sector, social business and animal husbandry," explained the Minister of Economy of the region.Anna Negoduiko.

The law establishes reduced rates under the simplified taxation system for 44 types of activities in agriculture, manufacturing, trade, the hospitality industry, education, healthcare, the provision of social and household services, leisure activities and passenger transportation. This list includes 14 new activities that did not exist in 2020 and 2021. In particular, these are animal husbandry, food production, paper and paper products, computers, electronic and optical products, activities of sanatorium-resort organizations, repair of computers and peripheral computer equipment, publishing and recreation and entertainment, for example, children's playrooms.

The Omsk Ministry of Economy added that due to the consolidation of the OKVED, the number of enterprises that will be able to apply minimum rates will increase significantly. For example, in trade in non-stationary facilities, according to the Ministry's estimates, 4 times more taxpayers are subject to reduced rates. By the way, reduced rates have been set for the food trade in the NTO since 2021.

In general, about 7 thousand taxpayers will be able to use the reduced rates. "Almost all business associations in the region were very much waiting for the law and participated in the formation of the list of preferential industries. For the first time, conditions have been created for small and medium-sized businesses in the region for the medium term, allowing them not only to compensate for the consequences caused by the epidemic, but also to predict their activities and invest in development. A significant result of the law is the mechanism of constructive dialogue between government and business: realizing the amount of budget revenue shortfall, the regional government has correctly prioritized the preservation of small businesses, employment in this sector and the quality of services for residents of Omsk. We are confident that taxes from the sectors mentioned in the law will return a hundredfold due to business expansion, job creation, and service growth," said the Vice President of the Omsk Regional Union of Entrepreneurs.Denis Koshel.

The law will enter into force on the day of its official publication, the reduced rates will be effective from January 1, 2022, and for food trade in the NTO from January 1, 2021.

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