Tax burden of microenterprises

In Russia, an experiment has begun on the transition to an automated simplified tax system for microenterprises and individual entrepreneurs with an annual income of up to 60 million RUB and the number of employees up to 5. The effectiveness of this measure can be assessed by calculating the tax burden as the main indicator of tax compliance. Most of the largest microenterprises with these parameters for 2020 have a tax burden below the industry average.

Information agency Credinform has selected for this ranking the Russian microenterprises with the volume of 2020 annual revenue up to 60 million RUB (TOP 10) according to the data from the Federal Tax Service. According to Globas there are over 1.1 million such microenterprises in Russia. These companies were ranked by income to calculate the tax burden (Table 1).

The tax burden is calculated as the ratio of taxes paid (net of income tax on dividends, personal income tax and insurance premiums) to income according to the statement of financial results (net of income from participation in other organizations).

The level of tax burden depends on the industry, region and the scale of the company's activities. To determine the reasonableness of the company's tax burden, it is necessary to compare the indicator with the industry average values.

For the most complete and objective view of the financial condition of the enterprise, it is necessary to pay attention to the complex of indicators and financial ratios of the company.

Table 1. Net profit, revenue, income for calculating the tax burden and the solvency index Globas of microenterprises (TOP 10)
Name, INN, region, activity Revenue, million RUB Net profit (loss), million RUB Income for calculating the tax burden, RUB million (above/below the industry average) Индекс платежеспособности Globas
2019 2020 2019 2020 2019 2020 2020
1 2 3 4 5 6 7 8
INN 2310107893 Krasnodar territory
Wholesale of paints and varnishes
down51,5 up60,0 down3,5 up5,7 down55,9 up65,9 207 Strong
INN 2539048101 Primorye territory
Lease and management of own or leased real estate,
high probability of financial insolvency, there are signs of a shell company, debt to the budget was collected through bailiffs over the past 3 years
up58,1 up59,9 up35,5 down34,3 up58,1 up62,1 550 Insufficient
INN 2312141138 Krasnodar territory
Retail sale of medicines in specialized stores (pharmacies)
up51,1 up59,9 down0,4 up1,0 up51,6 up60,4 223 Strong
INN 2724199218 Khabarovsk territory
Freight transport activities
up59,0 up60,0 up0,8 up2,7 up59,0 up60,3 284 Medium
INN 7735086504 Moscow region
Retail sale of medicines in specialized stores (pharmacies)
down52,6 up59,9 down0,5 up3,3 down52,6 up60,2 205 Medium
INN 7715855550 Moscow
Wholesale of perfumery and cosmetic products
down50,9 up60,0 up0,6 down-0,3 down51,5 up60,1 315 Adequate
INN 6501259936 Sakhalin region
Construction of residential and non-residential buildings
down53,5 up60,0 down1,9 down1,2 up57,3 up60,0 295 Medium
INN 2225173599 Altai territory
Wholesale of oilseeds and oil-bearing fruits
up51,9 up60,0 down0,0 down0,0 up51,9 up60,0 309 Adequate
INN 2315121549 Krasnodar territory
Auxiliary activities related to water transport
down53,7 up59,9 up4,3 up4,4 down53,7 up59,9 183 High
INN 2337034466 Rostov region
Production of heat exchangers, air conditioning equipment for industrial refrigeration and freezing equipment, production of equipment for filtering and purifying gases
down54,2 up59,9 down1,2 up2,4 down54,5 up59,9 285 Medium
Average value for TOP 10 down53,7 up59,9 up4,9 up5,5 down54,6 up60,9  
Average value for TOP 100 up55,6 up59,5 up5,3 up6,5  
Average value for TOP 1000 up54,6 up55,5 down5,1 up5,9

вверх growth of indicator to the previous period, вниз fall of indicator to the previous period

In 2020, only two companies of TOP 10 had income for calculating the tax burden above the industry average, that is indicative of high level of their tax compliance. In 2020, the growth of figures was recorded for all companies of the TOP, while in 2019 only five companies gained their figures. On average, the increase in income for calculating the tax burden in 2020 was 12%.

In 2020, all companies increased revenues and six companies increased net profit. The average revenue of TOP 10 companies increased by 12%, TOP 100 - by 7%, and TOP 1000 - by 2%. The average profit of TOP 10 raised by 12%, TOP 100 - by 23%, and TOP 1000 - by 16%.

Legislation amendments

From the 1st of July to the 31st of December 2022 legal entities and individual entrepreneurs will be able to use a single tax payment.
According to the Federal Law No. 379-FZ dated 29.11.2021, during this period it will be possible to use this special procedure for payment of taxes, dues and fees, insurance fees, penalties and fines by transferring a single tax payment to the Federal treasury account.

Tax authorities, in turn, using available information and documents will split the funds towards mandatory payments according to the prioritization:
1) Arrears – starting from the earliest detected date
2) Taxes, dues and fees, insurance fees and taxes prepayments – from the date the obligation to pay them arises on the basis of tax returns, calculations and notifications
3) Penalties
4) Interest
5) Fines
However, to use this procedure it will be necessary to make a reconciliation of payments with tax authorities.
It will be possible to apply for the special procedure for the payments from the 1st to the 30th of April 2022, but no later than one month from the reconciliation of payments.

Moreover, in experimental mode starts transfer to the automatic simplified taxation system of micro enterprises and individual entrepreneurs with annual income no more than 60 million RUB and staff number no more than five employees.
According to the financial statements for 2020 (Globas data) there are more than 1.1 million of the micro enterprises that meet these criteria. They can apply in the personal account of a taxpayer.
This taxation system involves exemption of filling of tax returns and automatic calculation of payments based on data from cash register equipment and account activity in authorized bank.
Republic of Tatarstan and Kaluga Region have already expressed their wish to enter the experiment that will take about six years.