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  • The Single Tax on Imputed Earnings (STIE)
    It is one more taxation regime which simplifies the life of businessmen. It is applied only to definite types of activities which are indicated in the Tax Code of the Russian Federation. The most attractive in this regime is the fact that the amount of tax is fixed and doesn’t depend on your actual income. The amount of tax depends on the dimension of your business: the area of your selling space, the quantity of employees, the amount of transport means – each type of activity has its own index.

    The Single Tax on Imputed Earnings can be decreased by insurance premiums. Companies and IE with employees can decrease the tax up to 50% on account of insurance premiums which they have paid for the employees. Entrepreneurs without employees can decrease the tax with no limitation by premiums which they have paid for themselves.

    How to apply the STIE?

    To apply the STIE it is necessary to file a notification to the tax authorities within 5 days from the start-up. But first of all check whether this taxation regime is used in your region. Remember that the Single Tax on Imputed Earnings can’t be applied if the shares of another company exceed 25% and if you have more than 100 employees.

    Accounts for STIE

    It is necessary to pay the Single Tax on Imputed Earnings and file accounts on a quarter-by-quarter basis. As this type of taxation is applied only to a definite type of activity, the other ones which are not indicated in the appropriate list in the Tax Code are imposed a taxes in accordance with the General Taxation System or the Simplified Taxation System.

    As a bonus there is one pleasant thing – it is not obligatory to use cash equipment for STIE users while cash payment.
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