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 viewpoint was expressed in a conversation with a BELTA correspondent by Tatyana Myasoedova, Head of the Tax 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, envisages both an increase in the criteria allowing for its wider application and a reduction in the single tax rates. "Undoubtedly, this will become another factor in increasing the number of taxpayers under the simplified scheme, consequently reducing accounting errors and the amount of penalties imposed for violations. Furthermore, the simplified taxation system encourages private businesses to come out of the shadow economy, which increases the number of taxpayers," explained Tatyana Myasoedova. The procedure for applying the simplified system was amended in 2012, resulting in a reduction of tax rates from 8% to 7% without VAT payment, and from 6% to 5% with VAT payment. Additionally, the declarative principle of switching to the simplified taxation system has been replaced by a notification principle this year. An analysis conducted by the tax authorities of the Vitebsk Region shows that the number of taxpayers under the simplified taxation system has grown 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%. Over 8 months, economic entities under the simplified procedure paid Br227 billion into the consolidated budget of the Vitebsk Region, which constitutes 3.7% of the total revenue for this period. As of September 1, 2012, 12,618 economic entities in the Vitebsk Region were using the simplified taxation system, of which 42.5% of the total number were legal entities, and the rest were individual entrepreneurs. -0-

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