The white house has submitted to the state Duma draft amendments to the Tax code that must support the business and socially oriented NGOs in confronting the consequences of the epidemic. The largest measure — cancellation of taxes and dues (except for VAT) for the second quarter of small business and NGOs from the affected industries. The bill will allow entrepreneurs to reduce the tax on profit at the expense of the cost of fighting COVID-19, and providers to receive payment for the additional load without any deduction of income tax. Experts note the importance of breaks, but I believe that for real economic recovery to the government following the example of other countries should decide for a partial reduction of VAT.Tax amendment third package “antivirus” business support arrived in the state Duma (for more information about package, see “Kommersant” on 16 may). As explained yesterday at a meeting of the Presidium of the coordinating Council on combating the spread of COVID-19 the head of the government Mikhail Mishustin, the purpose of the amendment reducing the tax costs for businesses and NGOs.The most ambitious measure — the liberation of the small businesses from taxes and insurance premiums (excluding VAT) for the second quarter. Earlier it was reported that the use of this privilege will be able to more than 1.5 million businesses — in addition to small and medium businesses of the affected sectors (air transportation, tourism, catering, domestic services, etc.) it is also socially oriented NGOs.Also, according to the amendments, entrepreneurs will be able to carry the costs for the purchase of medical equipment and therapies. “Thus, it will reduce the basis for calculating the income tax”,— said Mikhail Mishustin. In spending can be attributed to donations in the form of property transferred to socially-oriented NGOs that are recipients of subsidies and grants. It will be possible to reduce the taxable base and the amount of debt on loans taken to support employment (along with interest). Finally, the exemption applies to amounts paid to physicians for the additional burden in terms of the epidemic.In the feasibility study of the project States that its implementation could lead to losses of budgets. “At the same time to assess the shortfall in income is not possible”,— the document says. As noted by “Kommersant” (see number from 12 and 20 may), with problems arising due to the reduction of income following the announcement of support measures, will face first of all the regional budgets.Partner, tax disputes MEF PKF Alexander Ovesnov notes that the tax write-off for part of the SMEs, the most significant of all, the proposed measures to support business. “The project is useful and expected— says Councilor Bryan Cave Leighton Paisner Alexander Yerasov.— However, a much larger effect for expected��tion of the economy may give relief in respect of VAT— for example, the reduction in rates. It is able to accelerate consumer demand — many countries have already gone down this path.” The expert cites the example of China (the reduction of VAT from 3% to 1% for small businesses), Germany (reduction from 19% to 7% for the catering sector), Greece (VAT reduction for the affected industries from 24% to 6%).Note that, according to the survey conducted by the Moscow branch of “Business Russia”, the most requested business measures of Federal support began to decline sotsvznosov, a postponement of payment of income taxes and regimes, as well as the postponement of payment for rental of state property.Just yesterday the government by its decree extended the period of this delay for small businesses and socially oriented NGOs from affected branches until October 1, 2020 (the earlier date — 1 July). Prolonged terms of repayment of rent payments from the business are expected not before the end of 2020, and over the years 2021-2022. To pay the debt, the tenants will be in installments — equal monthly installments not exceeding half of the debt. On time installments you cannot set fees or to charge penalties and interest on borrowed funds.The economist “BCS Premier” Anton Pokatovich notes that the reduction in the cost of rent is necessary to the business: “Many companies are on the verge”. Thus, according to him, consumer demand could remain depressed for a long time, and a new term may not be enough for the recovery part of the business. When providing this benefit, according to him, the important thing is, how difficult is the bureaucratic process — if the business will be afraid of red tape, the demand for this measure will be sufficiently restrained. Recall that in late April, the economy Ministry and the Finance Ministry noted the lack of efficiency of work of state bodies and their subordinate enterprises with tenants.Tatyana Grishina, Eugene Kryuchkov
Austin Weather Forecast
23.5 ° C
Latest News & Headlines
In an interview, President of Ukraine Zelenskyy says that the "backbone of the Russian army is broken" and can't get back on its feet....