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Expected changes in Microenterprise tax regime from 2016.

September 25, 2015   •  13:13    •   Category: News

Tuesday, September 22, the government was discussed and supported by the Cabinet of Ministers (CM) rules on sectors which do not apply micro-enterprise tax regime. Overall, the 37 listed sectors.

Regulations are developed based on the Micro-enterprise Tax Law. It provides that the Cabinet shall be determined sectors by economic activities, micro-enterprise is not entitled to become and to be a micro-enterprise tax payers, because micro-enterprise tax regime to the relevant sectors do not comply with this law purpose.

The rules are listed in 37 sectors:

- Not complied with the public interest in the social security field, because there is a high risk of accidents and micro-enterprise taxpayer's employees range of social services available to a lesser extent than those employees for which taxes are paid in the general arrangement;

- There is a high risk that the micro-enterprise tax regime is used for tax planning purposes, including to avoid the payment of taxes in accordance with the economic activities carried out under the economic substance of the transaction;

- In the area have a high income potential and requires adequate knowledge and skills;

- Not complied with the public interest in fair competition.

Micro-enterprise Tax Law provides for a transitional period for the application of the sectoral restrictions. If a micro micro-enterprise taxpayer status acquired before 30 April 2015 and company carries out economic activities in the sector, which has no right to apply the micro-enterprise tax payer regime, micro taxpayer status still can be applied for 2016, 2017 and 2018. If a micro micro-enterprise taxpayer status acquired from 1 May 2015 until 31 December 2015 and company carries out economic activities in the sector, which has no right to apply the micro-enterprise tax payer regime, micro taxable status applies only in 2016.

Supported rule project requires that the company is not entitled to choose to pay micro-enterprises tax and if business activities are connected with logging, manufacture of tobacco products, pharmaceutical preparations, manufacture of basic metals, as well as in construction, architecture and wholesale.

The government agreed that the Ministry of Finance and the Ministry of Economics to continue discussions with industry associations in conjunction with the Cabinet of Ministers adopted regulations.