Contents / object of taxation


A taxpayer transferred to the simplified system of taxation chooses the object of taxation itself: either "aggregate income" or "income minus expenses". The chosen object of taxation may not be changer during the whole term of application of the simplified system. From 01.01.2005 for all taxpayers who use the simplified system of taxation, the object of taxation will be "income minus expenses" only.


If a taxpayer chooses "aggregate income" as the object of taxation:


INSURANCE PREMIUMS PAID TO THE PENSION FUND OF THE RF AND SICK-LEAVE PAYMENTS, to the amount not over 50% of the accrued tax amount

If a taxpayer chooses "income minus expenses" as the object of taxation:



minimal tax
Pension insurance charges
A taxpayer may decrease the tax due by the amount of charges paid to the RF Pension Insurance Fund and sick-leave payments paid out of his own pocket, but not more than by 1/2 of the calculated tax due.
Minimal tax

Should the tax due be less than 1 per cent of the taxpayer's income, the taxpayer must pay the minimal tax to the amount of 1 per cent of the income (expenses are not taken into account). At the same time, the taxpayer has the right to:

  • to deduct in the following years the margin between the minimal tax and the tax due calculated in accordance with the general rules; including loss carried forward
  • to deduct the tax base by the amount of loss incurred during previous years during which the taxpayer applied the simplified system of taxation with "income minus expenses" as the object of taxation. This loss may not decrease the tax base by more than 30%. The rest of the loss may be carried forward and deducted within 10 following years.

A taxpayer is obliged to keep documents, which confirm the amount of incurred loss and the deductible amount for each tax period during the whole term of making use of the right to deduct loss incurred from the tax base.