Advantages and Disadvantages of the simplified taxation system

Subjects of small businesses can go to the simplified taxation system for tax savings. As we know, there are two types of simplified taxation: a) income - that is, tax is paid at a rate of 6% of total revenue, the organization (in revenue included: turnover in the bank account, cash, and gains on netting), b) income minus expenses - amounting to 15% of the amount of the tax base. When choosing the kind of simplified taxation should all count, as by law can not be changed form UPDF during the three years since the transition. We can derive the formula that will be seen what form to choose, let x - the value of income, y - flow rate, z - the value of the tax, then: (x - y) * 15% = z1; x * 6% = z2. If one considers that less z1 z2 goes: (x - y) * 15% less than x * 6%, by solving this inequality, we get y more than 0,6 x. From the equation it is clear that in choosing the form of taxation in the UPDF must be borne in mind that if you have the cost exceeds 60%, then you will be more profitable to work in the form of income less expenses, and accordingly reverse. Let us look at the benefits of a simplified tax system: 1) tax savings (uproschenschiki taxpayers pay a flat tax instead of income taxes, property tax, VAT, UST), and 2) there is no need to maintain a large staff of accountants Disadvantages of the simplified tax system: 1) loss of customers ( large firms will not work with uproschenschikom because not selected in the completed form VAT invoice), 2) theoretically appears likely that in overcoming the limits set by the company will have to restore the entire accounting year. On the simplified taxation system more profitable to operate businesses engaged in community outreach, or similar small firms. Organization working with large clients more profitable to work on a common tax regime. Before choosing a tax regime in the business to imagine what will engage a firm with whom to work (people, organizations), to provide income.