A simplified tax system (SF) " Income - Expenditure " is one of the most popular tax types for SMEs. The main advantage of this system is the possibility of reducing the tax base by deducting business costs. Usually, it is advised to choose entrepreneurs who have a high cost of goods/services and cost over 60 per cent.

By lowering the tax base, the entrepreneur pays the tax from actual profits rather than income. However, not all costs are appropriate for write-off. There are legislative restrictions. It is only possible to reduce the tax base if the flow is on a special list.

It is important to take into account only the costs that can be deducted from the tax base. These include:

Expenditure on acquisition of fixed assets and intangible assets
Material costs for the purchase of raw materials and (or) materials used in the production of goods (work, services) plus utilities
Payroll: staff salaries, insurance premiums, bonuses, temporary disability benefits, etc.
Rental charges, including rental of premises, equipment, including leasing
External organization services: accounting, legal, etc.
If the taxis in the audit question the need for business expenses and the entrepreneur will not be able to justify it, it can be removed and taxed. For example, the Office of Internal Oversight Services should not take into account the representational costs of management, the organization of a staff corporation, the new year ' s gifts for their children.

The first and most important step towards reducing the tax base is to carefully document all business expenditures. Tax legislation requires primary documents to recognize costs. These may be invoices, trade invoices, cash receipts and contracts. All costs should be confirmed by the relevant documents.

If business uses basic means, the entrepreneur has the opportunity to reduce the taxable base through depreciation. This allows for the distribution of the asset ' s value for the duration of its service, thereby reducing taxable profits. It is important to choose the correct method of depreciation and maintain appropriate accounting. A cost-saving analysis also helps to identify unnecessary and streamline business processes.

On the NSA, " revenue minus " should be taken into account that it would not be possible to pay the tax at all. This tax system has the notion of “minimum tax”. It is 1 per cent of income. He needs to be paid at any rate, even if the cost was higher than the income.

Therefore, an entrepreneur finds two tax amounts after year. The first is the difference between income and expenditure multiplied by the tax rate of 15 per cent (the region may have another activity depending on the activity). The second is the proceeds multiplied by 1 per cent.

Comparing the results, the entrepreneur pays the amount that was more.

Material on: What is the minimum tax on " forgiveness "

The reduction of the tax base under the MSA " income - expenditure " may be legitimate. This requires a systemic approach to cost accounting, business process optimization, document management. Accounting is also complicated. It is important not to mix the balance, wires, debits/credit. Therefore, entrepreneurs in this tax system are more likely to use the services of an accountant, since it is already difficult to maintain a record on their own.

Source: Msp.rf.

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In the Yaroslav region, various assistance is provided to entrepreneurs through the Mala and Middle Entrepreneurship Project, as well as to industrial enterprises under the " Productivity " project and the " International Cooperation and Export " national project.

All support measures for small and medium-sized businesses can be accessed on my business site.

Details of all support measures for industry and investors on the investing site