New limit values for income from business activities

Practice of the world economy shows that efficiency of small and medium-sized businesses (SMB) is one of the most important indicators of the state’s competitiveness. The share of small and medium-sized businesses in the gross domestic product of our country is about 20%, while abroad this figure reaches 50% for the developed countries. According to the statistics, slightly more than 3% of small enterprises in Russia are operating more than three years, while the remaining close earlier.

Information agency Credinform has often addressed to the topic of small and medium-sized businesses in Russia. For example, one of the latest publications informs that during the past forum “Small business – the national idea”, the Presidium of business association “Support of Russia” and the VII Conference of the Chamber of Commerce and Industry of the Russian Federation in the beginning of 2016, it was discussed the suggestion of increasing the limit values of income from 60 to 120 mln RUB for using the simplified tax system.

After these events, the RF President’s Administration has released the lists of orders. As a result, the RF Government has adopted a resolution №265 from April 4, 2016 “On limit values of the income for each category of small and medium-sized businesses received from the entrepreneurial activity”

The resolution affirmed the limit values of income received from the business activity for the past calendar year. The income is summed by all existing types of activity and by all tax regimes for the subjects of SMB: 120 mln RUB for micro-sized, 800 mln RUB for small-sized and 2 bln RUB for medium-sized enterprises. The resolution will come into force since August 1, 2016.

As already known, the criteria of being the SMB subjects are confirmed by the Federal Law №209-FL from 24.07.2007 (as amended from 29.12.2015) “On the development of small and medium entrepreneurship in the Russian Federation”, which determines the average stuff for SMB enterprises. The limit values of revenue from sales of goods, works and services are defined by the resolutions of the RF Government for each of the categories. The previous resolution №702 was released in July 13, 2015.

The implementation of new norms can be resulted in easier access of small and medium-sized enterprises to grants, relatively cheap loans and state orders, including orders from state corporations. In addition, the effect of a three-year ban on scheduled inspections of legal entities and individual entrepreneurs - small businesses will spread on many more companies.

Information about the enterprises of small and medium-sized business will be contained in the State Register of small and medium-sized companies, which must appear on the website of the Federal Tax Service after August 1, 2016.

The publication of Credinform contains the statistics of a number of small and medium-sized enterprises in Russia   formed by the Information and analytical system Globas-i. That publication will help to size the scale of new norm operations.