ADVANTAGES AND DISADVANTAGES OF SIMPLIFIED TAXATION SYSTEM
The article studies the features of the application of the simplified taxation system (STS) - a special tax regime created for the development of small and medium-sized businesses. The main regulations of the application of the STS are considered, the advantages and disadvantages of this special tax regime are given, conclusions are made about the pros and cons of the application of the STS for small and medium-sized businesses. STS performs the regulatory function of taxes and is an effective source of revenue for the budget system. The main purpose of its introduction in Russia was to reduce the tax burden, facilitate the preparation and maintenance of accounting and tax accounting. By transfers to the budget, the STS annually occupies a leading position among all special regimes. Entrepreneurs can choose one of two options for using the STS - 6% of revenues or 5-15% of revenues reduced by the amount of expenses. The main savings when choosing STS are related to the absence of the need to pay value-added tax and profit tax for organizations or personal income tax for individuals. The order of transition to the system in question is voluntary, but regulatory requirements have been established, which the taxpayer must satisfy. The main advantages of the STS are: reduction of the tax burden; simplified accounting; independent choice of the object of taxation; tax period is a calendar year. The disadvantages of the STS include problems arising from the exemption from value added tax, because organizations can lose contractors who are payers of this tax and will not be able to apply the deduction. This necessitates a thorough analysis of cooperation with counterparties before deciding on the transition to a single tax. A significant drawback of the STS is also a limited list of expenses that a taxpayer is entitled to accept to reduce income (article 346.16 of the Tax Code of the Russian Federation). Constrains the use of this system and restrictions on activities, other strict criteria (revenue, number of employees, cost of fixed assets). If a loss occurs, the taxpayer is not exempt from paying the tax, but is obliged to pay the minimum tax (with the object of taxation «income reduced by the amount of expenses»). Special tax regimes, in particular the STS, are a special measure of state support for small and medium-sized businesses, since they reduce the tax burden. At the same time, the tax burden on small businesses in Russia remains high. Obviously, the existing tax regimes, however, require improvement.