Page 74 - RusRPTJul21

rubles ($4.14 million) to 100 million rubles ($1.38 million) for tax and social obligations. Non-oil & gas taxation is likely to keep rising as the FNS, led by Mishustin when the current system was launched, is doing a very good job of bringing more activity out of the grey economy and taxing activity. The latest reform is well-timed since the pandemic forced lots of firms to shift to more remote forms of work and, most importantly, created massive headaches to be able to access programs intended to help SMEs since smaller firms had to make sure they could adequately report their income and tax levels. The crisis has incentivized an expansion of the state’s tax oversight apparatus to make sure that future relief or stimulus efforts can be better targeted.
The Federal Tax Service (FNS) is preparing a new regime for small businesses - without insurance premiums or much reporting, but with an increased tax The FTS is going to offer individual entrepreneurs and small businesses a new tax regime - without insurance premiums from the entrepreneur himself and employees, but with an increased tax on activities, RBC found out. The main innovation is that the calculation of the amount of taxes will be transferred to the tax authorities themselves, who will be able to take information directly from banks. This means that entrepreneurs do not have to deal with reporting. Businessmen interviewed by The Bell like the idea, although they are wary of the tax proposals in general.
6.1.3 Budget dynamics - regions
More than a third of funding for new instruments could cover regional expenditures, say analysts of the ACRA rating agency.
In 2020, the aggregate capital expenditures of the constituent entities of the Russian Federation amounted to at least RUB1.8 trillion ($24.6bn), of which RUB600bn of this are social and environmental in nature and can be co-financed through the issuance of green and social bonds.
Some of Russia’s regions have been struggling to grow and half a dozen got close to defaulting on their debt in the stagnant years that followed the last oil price shock in 2014 as debt servicing started to eat up the entire regional budget.
The situation has improved as the economy recovers and the MinFin took over “manual control” of the debt arrangements of the worst off regions, but today 9 regions still are earning less in revenues than the value of their cumulative debt. In these cases the MinFin refinanced the debts and took them onto the public balance sheets on easier terms.
About half (46) regions are in good shape with debt levels at 50% or below their total revenue take. Another 30 regions have debts that are between 50% and 85% their total tax take. And the last 9 regions their revenues are 100% of
74 RUSSIA Country Report July 2021 www.intellinews.com