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26 May, Tuesday

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Putin proposed to provide six-month tax deferral for small businesses

Economy/Business

Small and medium-sized enterprises will be granted tax deferral for six months, excluding VAT, and insurance payments will be reduced from 30% to 15%. Russian President Vladimir Putin announced such support measures during his address to the nation on March 25.

He also proposed introducing a six-month moratorium on bankruptcy — this could help the companies most affected by the crisis.

“I propose to halve the insurance premiums from 30 to 15 percent for small and medium-sized enterprises so that they have additional resources to support their employees. Such a reduced rate will apply to the amount of salary exceeding the subsistence wage. If the salary is at the level of the subsistence wage or for some reason even lower, then the rate remains the same, 30 percent.

I draw your attention to the fact that the reduced rate is introduced not for several months, not only as an anti-crisis measure but, as it is called in the long run, for the future. Thus we create a long-term incentive for employers to increase the salaries of their employees,” the president said.

/translated by Tatiana Aksyutina
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