Proposed changes to the simplified taxation system will reduce the burden on small businesses - expert

October 5, Vitebsk / Diana Kurilo - BELTA /. Proposed changes to the simplified taxation system will reduce the tax burden on small businesses and increase the number of taxpayers under this progressive system. This point of view was expressed in an interview with a BELTA correspondent by Tatyana Myasoedova, head of the Ministry of Taxes and Duties Inspectorate for the Vitebsk region. The simplified taxation system is one of the most attractive taxation systems for small businesses. The draft budget for the next year, adopted in the first reading by the House of Representatives, provides for both an increase in the criteria that allow it to be applied more widely, and a reduction in the unified tax rates. "Undoubtedly, this will be another factor for increasing the number of taxpayers under the simplified scheme, as a consequence - a reduction in accounting errors and a decrease in penalties imposed for violations. In addition, the simplified taxation system stimulates the shadow economy to emerge into the open, which increases the number of taxpayers," explained Tatyana Myasoedova. The procedure for applying the simplified system was changed in 2012, as a result of which the tax rates without VAT were reduced from 8% to 7%, and with VAT - from 6% to 5%. In addition, the declarative principle of switching to the simplified taxation system this year has been replaced by a notification principle. Analysis conducted by the tax authorities of the Vitebsk region shows that the number of taxpayers under the simplified taxation system has increased this year. In January-August of the current year, compared to the same period last year, their number increased by 1220 entities, with a growth rate of 110.7%. For 8 months, business entities under the simplified procedure paid Br227 billion to the consolidated budget of the Vitebsk region, which is 3.7% of the total receipts for this period. As of September 1, 2012, 12,618 business entities in the Vitebsk region applied the simplified taxation system, of which 42.5% of the total number were legal entities, and the rest were individual entrepreneurs. -0-