This system applies only one tax instead of such customary taxes as:
- Corporate Profit Tax
- VAT (except for VAT on imports)
- Corporate Property Tax
There are two options for the Simplified Tax System.Option 1: your revenue.
Under this variant, you pay 6% tax on your income. This does not mean that no expenses are taken into account at all when calculating the amount of tax. The following expenses may be deducted from the sum of the tax in order to reduce it:
- Compulsory contributions to the Russian Pension Fund for the employees
- Compulsory contributions to the Social Security Fund of Russia (However, the tax payment may not be reduced more than 50%)
The great advantage here is that you do not have to prove to the tax authorities that your expenses were necessary for the business. After all, expenses are not included in the calculation of the paid tax (except for contributions mentioned above).Option 2: your revenue minus the costs.
Under this variant, you pay 15% tax on the sum you get after deducting the costs from your income.