NATALIA KORNIENKO: AFTER UTP CANCELED ONE CAN FORECAST AN INCREASED DEMAND FOR A SIMPLIFIED TAX SYSTEM
Natalia Kornienko, Head of Tax System Development Department of the Gaidar Institute, commented on consequences of cancellation of the unified tax on imputed income (UTP) to Business News Agency.
The first stage of the UTP cancellation starts on January 1st, 2020, the Agency wrote. At present, it will involve only certain payers, in particular, companies and individual entrepreneurs practicing retail trade, who will stop paying this tax.
Natalia Kornienko stated: ”After cancellation of UTP one can forecast an increased demand for a simplified tax system or a tax for self-employed”.
According to expert’s explanation: “There are rather well developed other modes for small business and they are effective”. Restrictions relevant to UTP look logical along the development of tax system for self-employed. State has to prepare regular reports for this tax system and approve ratios, which is costly and uneconomical from the administrative point of view”.
Natalia Kornienko stated: ”After cancellation of UTP one can forecast an increased demand for a simplified tax system or a tax for self-employed”.
According to expert’s explanation: “There are rather well developed other modes for small business and they are effective”. Restrictions relevant to UTP look logical along the development of tax system for self-employed. State has to prepare regular reports for this tax system and approve ratios, which is costly and uneconomical from the administrative point of view”.