IMPROVEMENT OF SMALL BUSINESS OWNERS TAXATION
                                                                                                                                            
Irina Vladimirovna Avvakumova¹, Olga Alekseevna Bykanova² and Ravil Gabdullaevich Akhmadeev³*

¹Senior Lecturer, Plekhanov Russian University of Economics, Russian Federation, imba52@mail.ru
²Associate Prof., Plekhanov Russian University of Economics, Russian Federation, bykanova@inbox.ru
³British Doctor of Philosophy degree (PhD) standard, Associate Prof., Plekhanov Russian University of Economics, Russian Federation, ahm_rav@mail.ru
*Corresponding Author

Abstract

The taxation system’s core role is that of an economic regulator, while the taxation service acts as a link between the taxpayer and the government. The Russian Federation’s taxation norms have a clear fiscal character. Our research compares and analyses the special taxation regimes used by small business owners in 2013 – 2018, reveals the key reasons behind the difficulties in the use of one of the taxation regimes, a flat tax on an imputed income. The tax burden is one of the reasons. We assess an alternative mechanism of a tax for the self-employed used since 2019 for small business owners. The key advantages of this special regime include an automatic tax deduction from the calculated taxation base with the help of a mobile application with simple registration. This feature will help influence the development of this economic sector because it is a factor in the national wealth amassing and will trigger higher budget incomes to the budgets of all levels.

Keywords: Taxation, Special taxation regimes, Tax burden, Small business owners, Small business