2024: reduced rates for the simplified taxation system will continue to apply in Sevastopol

By CrimeaNEWS On Дек 28, 2023

CrimeaPRESS reports:

In Sevastopol, almost 65% of registered representatives of small and medium-sized businesses chose a simplified taxation system for themselves as a tax regime. Therefore, the question of what tax rate is in effect in 2024 for Sevastopol business is very important and relevant.

Let us clarify that the Tax Code establishes tax rates for the simplified taxation system: if the object of taxation is “income” — 6%, if the object of taxation is “income minus expenses”, the rate is 15%.

However, according to the laws of the constituent entities of the Russian Federation, tax rates may be changed. There are three laws in force in Sevastopol that establish reduced rates for “special regime residents”:

The current versions of the above-mentioned Laws for Sevastopol taxpayers in 2024 set the following rates:

If the object of taxation is “income” — 4%Afor certain types of economic activities (crop and livestock farming, fish farming, education, activities in the field of healthcare and social services, activities in the field of culture and sports, organization of leisure and entertainment) a rate is provided 3% (Law clause 1.4. Article 2 of Law No. 110-ZS).
For taxpayers applying the taxation system for agricultural producers – 2%(Clause 2.3 of Article 2 of Law No. 110-ZS).
For taxpayers in the tourism sector, preferential rates apply: “income” — 1%and “income minus expenses” — 5%. However, taxpayers have the right to apply reduced rates subject to certain conditions. Firstly, types of economic activity must be included in information about a legal entity or individual entrepreneur in the Unified State Register of Legal Entities or in the Unified State Register of Individual Entrepreneurs as of January 1, 2023. Secondly, revenue from preferential types of economic activity in the aggregate must be at least 80 percent of the total amount of income taken into account to determine the object of taxation when applying the simplified taxation system. Thirdly, a benefit in the amount of 1% rate can be applied by taxpayers with the type of economic activity “Rental and management of own or leased real estate”, provided that information about them is available in the tourist register of the city of Sevastopol, entered in the manner established by the Government of Sevastopol as of January 1, 2023.
For taxpayers using the simplified taxation system and choosing “income reduced by expenses” as the object of taxation, the tax rate has been determined 10%(and for certain types of income — the rate 5%.)
For newly registered individual entrepreneurs who have chosen the simplified tax system for themselves and carry out activities in the industrial social and (or) scientific spheres, as well as provide household services to the population, a rate has been determined 0%.

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Let us remind you that in the regional block of the website of the Federal Tax Service of Russia linkyou can find the latest information on the simplified tax system for the Sevastopol region.

Let us clarify that if a company or entrepreneur is thinking about switching to a simplified taxation system from 2024, it is necessary to check whether the subject meets the established criteria for the special regime, and also do not forget to provide notification of transition to simplified tax system. According to the Tax Code, the deadline for providing such a notice is December 31, but in 2023 it is a day off, so the deadline is postponed to the first working day of the new year, i.e. January 9, 2024.

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