In Russia, from January 1, 2023, a new tax regime will work – the automated simplified taxation system (AUTS). By analogy with the standard simplified taxation system (STS), taxpayers on AUTS can choose the object of taxation – “income” or “income reduced by the amount of expenses”. But the rates for AUSN are higher than for the simplified tax system, namely 8 and 20%, respectively. The use of AUSN implies exemption from tax reporting (the tax will be automatically calculated by the Federal Tax Service).
The majority of Russian microbusiness firms (over 90%) reported that they would not switch to the new special tax regime. Many are confused by high tax rates and distrust of the IFTS. Also, a significant part of the respondents want to independently manage payments for taxes and fees.
Companies are often distrustful of innovations in the Tax Legislation system and want to use the example of other companies to make sure that the IFTS and banks will work smoothly and clearly within the AUTS. Since the tax will be calculated and withheld by tax inspectors based on the information that the bank will give them, business owners have doubts that the tandem will work without errors.
According to the survey, only 3% of micro-enterprises declared their readiness to use AUSN. In some regions of Russia, the new tax regime began to work on July 1, but so far only new companies can use it and they must do this within 30 days from the date of registration. For other companies, this tax regime will become available only from January 1, 2023.
A small part of Russian firms is ready to abandon full-time accounting when switching to AUSN, since this system provides for exemption from tax reporting. Most businessmen are not ready for such a step and consider it inappropriate. Also, many businessmen declared their unwillingness to split up the business in order to fit into the AUSN criteria.
In our opinion, the AUSN system has a number of significant shortcomings. Among them:
- the need to pay monthly taxes
- inability to combine with other special modes
- too small allowable number
-limited number of participating banks
- a ban on the payment of income to individuals in cash
- a ban on hiring non-resident workers
-difficulties in challenging errors in the calculation of taxes
We also note the clear advantages of the new taxation regime:
- absence of field tax audits
-reducing the amount of reporting
-Exemption from insurance premiums from the income of employees
-ensuring social and pension rights of employees of AUSN taxpayers is carried out in full at the expense of the federal budget