Tax Service: The thresholds for applying the simplified tax system will be expanded for small and medium-sized businesses from 2025

CrimeaPRESS reports:

A number of changes have been made to the Tax Code for one of the most popular tax regimes – the simplified tax system. The innovations come into effect on January 1, 2025.

The simplified taxation system can be applied in 2025 if the following conditions are met:

• revenues for the first 9 months of 2024 did not exceed 337.5 million rubles with annual indexation by the deflator coefficient (previously it was 112.5 million rubles);
• the residual value of fixed assets is 200 million rubles (previously it was 150 million rubles);
• the average number of employees is no more than 130 people (previously it was 100 people).

It should be noted that entrepreneurs who have already applied the simplified tax system previously retain the right to apply this taxation system if:

• income for the current reporting period does not exceed 450 million rubles (previously it was 200 million rubles);
• the residual value of fixed assets is no more than 200 million rubles (previously it was 150 million rubles);

In addition, the increased rates under the simplified tax system have been cancelled. Let us recall that since 2021, when the limits for applying the simplified tax system were exceeded, increased rates were in effect: 8% for the tax base of «income» and 20% for the tax base of «income minus expenses». Since 2025, only the basic rates under the simplified tax system will be applied: 6% for the tax base of «income» and 15% for the tax base of «income minus expenses».

Regions retain the right to lower these rates. Let us recall that in Sevastopol is valid a rate of 4% (and for some types of activities 3% and 1%) for the tax base of “income” and 10% (5%) for the tax base of “income minus expenses”.

An important innovation is the recognition of «simplified» taxpayers as value-added tax payers. However, an exemption from VAT is provided if the amount of income for the previous year did not exceed 60 million rubles in total. Also, newly created organizations or individual entrepreneurs will be able to take advantage of the exemption. To obtain an exemption from VAT when applying the simplified tax system, you do not need to take any special actions: if the necessary conditions are met, it applies automatically.

If the limit of 60 million rubles is exceeded, then the right to choose the VAT rate is given. You can choose either to apply the general procedure for calculating and paying VAT — a rate of 20% (10%) with the right to apply deductions, or to apply reduced rates. In this case, the VAT rate is 5% (income up to 250 million rubles) or 7% (income up to 450 million rubles). However, when applying reduced rates, there is no right to VAT deductions, and input VAT can be included in expenses (object «income minus expenses»).

source: press service of the Federal Tax Service of Russia in Sevastopol

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