Say goodbye to “imputed tax”. What’s next?
In accordance with Federal Law No. 97-FZ of June 29, 2012, the special taxation scheme in the form of a unified tax on imputed income (UTII) will be cancelled as from January 1, 2021. The cancellation of UTII will affect all taxpayers, regardless of the constituent entities of the Russian Federation and types of activities. In the meantime, it is not necessary to apply for removal from the tax records as a UTII taxpayer, as the removal will be carried out automatically.
With the cancellation of UTII, organisations or individual entrepreneurs have the right to switch over to a simplified taxation system, and individual entrepreneurs, to a patent taxation system (PTS), or to pay a tax on professional income, the so-called “tax on self-employed”.
When applying these schemes, organisations and individual entrepreneurs are exempted from paying the same taxes as with UTII: from value added tax, property tax; in addition, organisations are exempted from income tax, and individual entrepreneurs, from personal income tax. In case taxpayers do not choose the new taxation scheme on their own by the end of the year, they will be automatically transferred to the standard taxation scheme.
The Tatarstan Office of the Federal Tax Service of Russia recommends that taxpayers decide in advance on the choice of another taxation scheme by promptly notifying the tax authority at their place of registration.