Amendments have been made to the bill on reduced tax rates for simplified taxation system (STS).

      Today, the Legislative Assembly committee reviewed the draft law "On the establishment of tax rates in the Kirov region for the tax levied in connection with the application of the simplified taxation system." It is proposed to adopt it in two readings.

      Let us remind you that the draft law proposes to establish the following tax rates for those who apply the simplified taxation system (STS):

      1. At a rate of 1% (if the object of taxation is income) and 5% (income minus expenses). This will affect:

      taxpayers predominantly (at least 70%) receiving income from activities in the field of manufacturing folk art products, retail trade in souvenirs, folk art products, and the production of other finished goods;

      socially oriented non-profit organizations;

      social enterprises (for which reduced STS rates were not previously established).

      2. At a rate of 3% (if the object of taxation is income) and 7.5% (income minus expenses). This will affect:

      small technological companies (for which reduced STS rates were not previously established);

      taxpayers predominantly (at least 70%) receiving income from activities in certain sectors (production of food products, non-alcoholic beverages, water, textiles, clothing, leather, paper, chemicals, medicines, rubber and plastics, metal products, computers, optical products, electronic equipment, vehicles, furniture, and much more).

      To receive the benefit, taxpayers must not be listed in the register of unscrupulous employers, and the average monthly salary of employees must be at least 1 minimum wage in the first case and at least 2 minimum wages in the second. Initially, the document stated that it would be calculated at the beginning of the calendar year in accordance with the minimum wage established by federal legislation. In the amendments proposed by the tax authority, it was added that it refers to the minimum wage established at the beginning of the relevant calendar year.

      It should be noted that upon the adoption of the draft law, the region's budget will annually lose 152 million rubles. Nevertheless, the Legislative Assembly committee supported the initiative.