Tuesday, April 7, 2009

The rate of social tax freeze for one year.

The Government of Russia, as promised, will replace the single social tax system, insurance premiums in early 2010, but the tax rate will be increased from 26 to 34 percent as previously estimated. The statement was made by the Prime Minister of Russia Vladimir Putin in his speech in the State Duma, which is broadcast TV channel "Vesti". 34 per cent of the salaries of staff, employers should be given to the State only in 2011.
According to Putin, in 2010 the tax will be levied on a flat salary scale, with up to 415 thousand rubles per year. Now tax rate ranges from two to 26 percent depending on the annual salary.
Previously, it was reported that in early April, officials presented several options for Vladimir Putin to reform the UST system and insurance payments. The final decision of the Prime Minister was to announce it during the speech in the Duma.
The representatives of Russian business have repeatedly drawn attention to the fact that it is not against the replacement of UST social benefits, but opposes an increase in the rates of social benefits. In addition, delays in raising taxes on business found the Ministry of Economic Development officials.
Raising taxes on businesses will result in additional losses that are in a financial crisis could cause bankruptcy.
In 2008, the government lowered the tax rate on profits, to help Russian business. However, this measure has had only limited, as many companies were in early 2009 losses.

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