Vera Barinova: “New Tax Regime is Aimed at Developing the Microbusiness”

In 2022, Russia will start an experiment with the automated system of taxation (AST). Vera Barinova, Head of the Innovation-Driven Economy Department, Gaidar Institute told the Izvestia daily, how the new taxation system was going to influence the development of the microbusiness in Russia.

According to the architects of the initiative, this move will promote the development of microbusinesses. It will be easier to network with the state; participants will not have to submit tax returns. The tax will be calculated automatically on the basis of online cash registers’ data and settlement operations. As a result, it will help minimize tax reporting costs and spend funds on business development.

According to Vera Barinova, it is an interesting experiment which microbusinesses may benefit from.

“The new tax regime will slow down a switchover of micro businesses into the self-employed. However, entrepreneurs will have to spend plenty of time to go into the details of the new mechanism,” the expert added.