In the Vitebsk region, the rates of the single tax for individual entrepreneurs and self-employed citizens have been halved.

12/05/20200 views

In the Vitebsk region, the rates of the single tax for individual entrepreneurs and self-employed citizens have been halved for the 2nd and 3rd quarters of 2020. This decision was made on May 12 at a session of the regional Council of Deputies. According to preliminary data from the tax authority, this will provide support to more than 9,000 taxpayers.

Deputies of the Vitebsk Regional Council were the first among their colleagues from other regions to use the opportunity provided by the Head of State's Decree No. 143 "On Support for the Economy". According to preliminary estimates, this relief for small businesses, which will be in effect from April 1, will cost the local budget approximately 2.2 million rubles.

Amidst the slowdown in entrepreneurial activity against the backdrop of the global epidemiological situation, payers of the single tax are among the most affected sectors of small business. As reported by the head of the regional tax inspectorate, Valery Lobatsevich, situation monitoring shows that revenues in several areas of activity decreased by 2-3 times in April. At the same time, the single tax rate is fixed and must be paid in advance – these are the specifics of this tax regime. Therefore, the decree, along with reducing the tax burden for this category of taxpayers, provides for the possibility of switching to another tax regime – the simplified tax system (STS) or paying income tax – from the beginning of any month. The purpose of the transition is that only the revenue received will be subject to taxation, and the tax will need to be paid quarterly, not in advance. According to preliminary data, about 40 entrepreneurs have already taken advantage of this opportunity. At the same time, those payers of the single tax who are supported today will be able to compensate the budget for lost revenue in the future, when revenues return to pre-crisis levels.

In recent years, individual entrepreneurs (IEs) have made the main contribution to the quantitative growth of small and medium-sized businesses in the Vitebsk region. As of April 1, a total of over 23,000 IEs have been registered, which is 5% more than a year earlier. This category of taxpayers has grown at the highest rates in 14 rural districts, including Beshenkovichi (12.5%), Dubrovno (12.2%), Liozno (11.9%), Tolochin (10.3%), Braslav (10%), Senno (9.5%), and Verkhnedvinsk (9.4%) districts.