Russia Tax Agency Issues Guidance on Simplified Taxation System for Representatives of SMEs

The Russian Federal Tax Service March 20 issued guidance on the simplified taxation system (STS), aimed at representatives of small and medium-sized enterprises (SMEs). Topics covered include: 1) conditions and thresholds to apply the STS; 2) clarifications on the exemption from paying taxes that are paid in connection with using the general taxation system; 3) the procedure for transitioning to the STS, as well as the ability to determine the object of taxation; 4) tax rates under the STS, including a 6 percent income tax rate and a 15 percent income deduction rate; 5) tax payment and reporting periods, declaration ...