The Ministry of Economy of the Republic of Tatarstan shared its experience in introducing a tax regime for the self-employed with the Orenburg region
Starting from July 1, the special tax regime “Professional income tax” is introduced in all regions of Russia. In 2019, Tatarstan became one of the four pilot regions to introduce a tax regime for self-employed citizens, which made it possible to broadcast positive experience for entrepreneurs of the Orenburg region today at a webinar organized by the My Business Center.
Starting from July 1, “Professional Income Tax” begins to operate in the Orenburg region, along with the entire country. It gives the right to legalize entrepreneurial activity with minimal costs and conduct it in a simpler mode. This was estimated by over 68,000 self-employed people registered in Tatarstan today, which means the legalization of more than 20.5% of citizens employed in the informal economy of the Republic. Nonresident citizens who are registered in other Russian regions but have chosen the territory of Tatarstan to conduct their activities are also not taken into account in this figure. There are about 8,500 such people.
The representative of the Ministry of Economy of Tatarstan Emil Khismatov spoke at a webinar about the main issues that interested the self-employed of the Republic at the initial stage of introducing a special tax regime. In particular, whether it is necessary to pay insurance premiums, how to issue checks, whether there are reports, whether a legal entity or individual entrepreneur can conclude an agreement with a self-employed citizen. Khismatov also stressed that over time, the interest of entrepreneurs in the tax on professional income is only growing.
Free advice on these and other issues is available for the self-employed in Tatarstan at the My Business Center and the Self-Employed Support Center. So, the My Business Center, as well as municipal representatives in each district of the republic in 2019 advised and registered more than 13,000 citizens who chose a special tax regime. In turn, more than 41.1 thousand consultations were provided by multifunctional centers for the provision of state and municipal services in 2019, more than 2.4 thousand self-employed were registered.
Summing up, Emil Khismatov noted that the implementation of this project will have a favorable effect on the socio-economic climate of the Orenburg region and Russia as a whole. In addition, one of the positive effects of the special tax regime “Professional income tax” is the reduction in the overall unemployment rate and the share of shadow employment in the region.