Finance Ministry proposes to increase the flat tax for small businesses

Russian Ministry of Finance has developed a draft law on a gradual increase since 2017 a single tax on imputed income (UTII) for small businesses. The corresponding document was published on the portal of the draft regulations.
To increase UTII Ministry proposes to increase the ratio of the deflator, which determines the final tax rate. In 2016 rate remained at the level of 2015 and amounted to 1,798.
"In 2017, the deflator index will be 1,891, in 2018 - will be equal to 1,982, in 2019 - 2,063", - stated in the draft law. Thus UTII for small business can grow in 2019 by 14.7%.
Economic Development Ministry representative noted that new proposals on the bill until they have not acted.
"However, in paragraph 78 of the Government's Action Plan aimed at ensuring sustainable socio-economic development of the Russian Federation in 2016 stipulates that the Russian Ministry of Finance shall prepare the draft Law on the adjustment mechanism for adjusting the coefficient-deflator used in the framework of the tax system as a single tax on imputed income ", - said the representative office.
UTII substitute for the small business owners pay almost all other taxes, but it is allowed to apply only in specific areas (mainly retail, catering, domestic, veterinary services, repair services). About 2.1 million of legal persons exercised this right as of January 1, 2016.