Entrepreneurial Boom? Tens of Thousands of Russians Register Their Own Businesses!

Over 60,000 people have already registered with the Federal Tax Service as self-employed workers. The total amount of their businesses in total is over 3.5 billion rubles ($54 million). That's what the head of the FTS, Mikhail Mishustin said today at his meeting with Vladimir Putin in the Kremlin.

Over 60,000 people have already registered with the Federal Tax Service as self-employed workers. The total amount of their businesses in total is over 3.5 billion rubles ($54 million). That's what the head of the FTS, Mikhail Mishustin said today at his meeting with Vladimir Putin in the Kremlin.

Who has already legalized their income in the framework of the large-scale experiment? Plus, what is "tax monitoring"? And why did it become much easier to get certificates from a registry office? Here's the report by our observer, Alexey Petrov.

Tens of thousands of specialists who work for themselves have been able to participate in the large-scale tax experiment. This is the subject of the president's conversation with the head of the Federal Tax Service. Babysitters, private teachers, housekeepers no longer worry about the legality of their income.

Vladimir Putin: What's going on with the self-employed? We have started this experiment in several regions: Moscow, Moscow Oblast, Tatarstan…

Mikhail Mishustin: The Republic of Tatarstan, and Kaluga Oblast. The experiment is underway. Now, over 60,000 people have voluntarily registered as payers of the professional income tax.

- In these regions?

- In these regions. In fact, the amount of business of the participants of the experiment, who have registered within it, is approximately 3.5 billion rubles ($54 million). So-called legalization is underway. We believe that it's going quite successfully. Many regions are asking now to expand the framework of this experiment. Yes, many of them want to see this opportunity introduced there.

Roman Stavrovsky and Alexandra Basova are creating real paintings with sand. But it's not just an art project, it's a business.

"Launching "My Tax", entering the code, and I can create a new sale".

Before, the client worried before giving a down payment, because there weren't any documents. Now their record is in order. In their turn, the authors of the pictures no longer build sand castles. Now, they can apply to banks, providing all of the papers needed by credit organizations.

Roman Stavrovsky, artist: "In this application, I can get an income certificate, a certificate of the tax registration. And that's it, banks already consider these certificates to be legitimate".

Taxi drivers have been able to benefit from the innovation. Sberbank takes an active part in the experiment by providing the self-employed workers with new opportunities.

Alexandr Vedyakhin, Sberbank: "The most notable thing is that the tax rate for them is much lower. If a regular private person pays 13% tax, a self-employed worker pays only 4%. Meanwhile, they enjoy the same benefits, as regular private persons".

Dummy companies are gradually becoming a thing of the past, as the tax service notices. Now, they constitute less than 5% of all business organizations. While a cash register has become an obligatory element of civilized business.

Vladimir Putin: "Is the number of cash registers rising? How do people use the benefits, which are provided when purchasing a cash register?"

Mikhail Mishustin: "The number of cash registers is increasing. On average, the number has doubled from before the reform. This technology has gained popularity. Business owners like it, as they are in fact registering everything they do on this online system. Today, many people are waiting for us to cancel, as we have promised, declarations connected to conducting business in case of the companies that use a cash register with a simplified taxation scheme".

Besides, the Tax Service has launched a unified system that covers the work of civil registry offices. You won't need to personally go to the place where a birth or a marriage was registered. A unified cloud technology will connect all of the units. Naturally, only recent data is now available online. However, they will gradually add even the data in the archives.

Vladimir Putin: Do you go only eight years deep now?

Mikhail Mishustin: The online system started on October 1st, 2018. But, if everything goes as planned, within 2.5 years, a retro-conversion will be done, starting from 1926.

- So, it's even further back.

- For this, we'll need to process the civil registry offices' archives and enter them into the system.

Tax monitoring is becoming more and more widespread. It's a special form of interaction between major companies and the Tax Service. No more inspections, all of the information the Tax Service might need is available online. Therefore, the amount of tax revenue to the Federal Budget has increased. Last year, for example, by almost 30%.

Alexey Petrov, Yuliya Shchedrova, and Anna Medvedeva, Vesti.