The list of cases of loss of the right to apply the PSN has been clarified

Purpose:

The Russian government has introduced an update to the simplified taxation system (ПСН) effective January 1, 2025. The main objective is to prevent individual entrepreneurs (ИП) from exploiting tax loopholes and ensure they comply with tax laws. This update aims to strengthen tax regulations, particularly for ИПs who have previously exceeded the income threshold of 60 million rubles.

Effects on Industry:

This update will significantly impact individual entrepreneurs (ИПс) in Russia, particularly those who have been exploiting tax loopholes by applying both ПСН and Unified Tax System (УСН). The introduction of stricter regulations will lead to a reduction in tax evasion and avoidance. However, it may also result in increased administrative burdens for ИПs who need to comply with new tax laws. Small and medium-sized businesses may be disproportionately affected, as they often have limited resources to navigate complex tax regulations.

Relevant Stakeholders:

The update affects individual entrepreneurs (ИПс) who apply ПСН or УСН in Russia. Specifically, this change will impact ИПs who:

1. Have exceeded the 60 million rubles income threshold for both ПСН and УСН in previous years.
2. Currently apply both tax systems, but have not yet reached the income limit.
3. Are planning to switch from one tax system to another.

Next Steps:

To comply with this update, ИПс must:

1. Review their past income statements for both ПСН and УСН.
2. Assess their current financial situation and determine whether they will exceed the 60 million rubles threshold in the current year.
3. If necessary, switch to a different tax system (e.g., общий режим налогообложения or UСН) before the deadline.

Any Other Relevant Information:

This update is part of a broader effort by the Russian government to strengthen tax regulations and reduce tax evasion. Additional measures may be introduced in the future to further regulate tax laws and prevent abuse. As such, ИПс should remain vigilant and adapt their business strategies accordingly to ensure compliance with changing tax laws.