The unified tax on imputed income will not change in 2016

25th November 2015

The Ministry of Economic Development of the Russian Federation made a final decision not to change the coefficient deflator for calculating the unified tax on imputed income (UTII) in 2016. It was announced on 19November 2015 by the Minister of Economic Development of the Russian Federation Alexey Ulyukayev.

“The decision is final. We adopt the order of the Ministry of Economic Development – I will sign it tomorrow – that does not change the deflator for small and medium business for the unified tax on imputed income. It remains at this year’s level”, - said the Minister.

Alexey Ulyukayev said that the State Duma of the Russian Federation will take the necessary amendments to the Tax Code of the Russian Federation, so that “there will be no conflict between the by-law and the law”.

The Minister also noted that “freezing” coefficient deflator at current levels is adopted for one year.

On 13 November 2015 the head of the State Duma's Budget and Taxes Committee Andrey Makarov introduced MPs the draft law № 928122-6 “On establishing the coefficient deflator for 2016 and amendments to the Federal Law “On Amendments to Part Two of Tax Code of the Russian Federation” and the Federal Law “On Amendments to Chapter 21 of the Tax Code of the Russian Federation”, which also freezes the present coefficient deflator necessary for calculating the UTII.

The UTII is most commonly used by small and medium enterprises, especially in trade. This tax system allows traders to communicate less with tax authorities. The UTII implies taxation of the potential income, not actually received. According to the Federal Tax Service, at the beginning of 2015 2.1 million tax payers used the UTII: 1.8 million individual entrepreneurs and 333 thousand organizations.

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