In the appeal on 23 June, President Putin also made proposals aimed at stimulating the Russian economy and business support. For example, from July 1, all regions will be able to introduce a tax regime for the self-employed. In addition, for IT companies, Russia will introduce one of the world’s lowest rates of income tax is just 3 percent, instead of 20. Separate initiatives address labour market and related industries affected by the pandemic.
For the world economy, the epidemic of coronavirus COVID-19 was a test. Quarantine has drastically reduced not only the communication but also the movement of goods, services and labour. The loss of each country. Russia’s GDP in April, when did non-working days, decreased by 12 percent. The virus came almost simultaneously with the unprecedented drop in world energy prices. But the Russian economy has withstood even such a double blow.
“we Have not experienced a sharp jump in prices, — said Vladimir Putin. — You also remember what happened in key raw materials, energy, the global financial markets. Unpredictable fluctuations, sometimes just panic. It is clear that all this could not affect our national currency. But first, we prevented sharp fall of the ruble, and then he actually returned to pre-crisis level. This was extremely important to protect the incomes and savings of citizens. And this predictability, the stability of the national currency, the stability of the ruble, was not secured artificially, not for any team, and due to the strength of the fundamentals of the Russian economy. Let me stress that not all countries have managed to achieve the same macroeconomic results.”
But the unemployment rate still rose in terms of stop entire industries, it is inevitable. The President sets the task before the government — in 2021, fully restore the labor market. The protection of jobs since the beginning of the epidemic was devoted to all the efforts of the state. For the most affected enterprises introduced preferential credit for one hundredof VKE 2 percent. And if you were able to save 90 percent of jobs — money is not necessary to give.
“We see that this measure is demanded. Applications have been approved from 90 thousand companies 2 million 400 thousand employees. But the demand, as we have seen, was much higher than originally planned by the government. Therefore I propose to extend this measure to support this program, provide the sales of one hundred billion rubles and thus additionally support the businesses, their employees at the stage of exit restrictions, — Putin suggested. And thereby accelerate the economic recovery and employment”.
Business needs to experience and reducing the administrative burden. When across the country have begun to build hospitals, it was found that it can be done quickly and efficiently, cheaply and without unnecessary bureaucratic red tape.
” I have already instructed the government to review the regulation of the construction industry to make changes based on the experience of recent months. I know that in the first phase, the government is ready to transfer almost a third of existing requirements to the construction site in the category of recommendations. This work should definitely continue, because the reserves we have, literally, everywhere, in all spheres, — said Putin. — I stress that radical improvement of the business climate, the simplification of the procedures should be an important resource recovery and qualitative development of the economy”.
special attention to the category of self-employed entrepreneurs. They are in the country already 700 thousand. It was an experiment which is now proposed to extend to the whole of Russia.
“From 1 July on the territory of the whole country, all regions must be given the right to introduce a regime for self-employed. This means that people can officially and work in peace, — continued the head of the Russian state. Also think about this, we talked to young entrepreneurs should be given the opportunity to get the status myselfsanatoga not with the 18 and 16 years. According to calculations ,this law will benefit nearly three million of our citizens. In addition, these young entrepreneurs will also receive additional tax benefits, namely tax capital in the amount of one minimum Wage, in order not to divert resources from the development of the business for income taxes”.
life in the country begins to return from virtual reality to normal, but the epidemic has shown that online technologies are the future. Recently, the President met with representatives of Russian IT companies. This market is growing tremendously and strategically important. To support it the President has proposed tax reform to reduce the burden on the payroll Fund.
“let me Remind you, we have already doubled, to 15%, lowered the rate of insurance contributions for all companies small and medium-sized businesses. I believe that in the IT field, we can and must go further. Now the rate of insurance contributions for such companies of 14 percent for the period up to 2023. I propose to reduce it to 7.6 per cent, and not temporarily, but permanently. In addition, it would be right important, in order to reduce the rate of the profit tax for IT companies and, of course, indefinitely, the current 20 percent to three, which is not only comparable, but even better than these attractive today for IT business jurisdictions like Indian or Irish. In fact, it is one of the lowest tax rates in the world,” Putin suggested.
to Pay taxes in Russia for business should be comfortable and attractive. Special attention to entrepreneurs who develop their business not only domestically, but also abroad.
“they Have to be able to comfortable, civilized way to pay taxes at home, in Russia. Now the Russian tax resident holders of foreign assets pay tax on the income received from the activities of the so-called controlled foreign companies is quite complex, bulky and can say, confusing scheme. Offer ee to radically simplify, to grant the right to pay a fixed tax amount of 5 million rubles a year, without additional reporting. Thus we will give impetus to the development of a modern, responsible business, and it is in Russian jurisdiction,” — said the President of Russia.
the budgets of the regions during coronavirus crisis also experienced load. From the Federal government to support them — allocated 200 billion rubles for compensation of expenses related to measures to combat the epidemic. Vladimir Putin on June 23, ordered to allocate even more money.
“I Instruct the government to provide additional financial assistance to the regions, to allocate another hundred billion plus to the two hundred billion, which we already announced earlier. To compensate for the regions ‘ costs associated with the implementation of national measures to combat the epidemic and its consequences. At the same time please take a look at the guidelines for the allocation of such support, not to restrict but rather to encourage the regions that actively invest their resources in development projects. – Putin addressed to the government. — In addition, this year we will add another hundred billion to upgrade regional road network. We will direct these funds to those entities that work quickly, construct, rehabilitate the road efficiently and ahead of schedule”.
the pandemic will have to specify the parameters and timing of national projects, to write on them all the current and future measures to support the economy. But now the head of state makes it clear — the spending on health and education in the new budget will be increased in any case.