Novice entrepreneurs in Russia to get tax break

The Russian government received a proposal for a trial “tax vacation” law for entrepreneurs to boost economic growth, Russian government daily Rossiyskaya Gazeta reported, Dec. 9.

“Newly registered entrepreneurs applying a simplified system of taxation will be allowed to claim a zero tax rate for themselves for two years, but only once,” Natalia Larionova, from the Ministry of Economic Development, told the newspaper.

The trial law will come into effect in 2014. A few regions in Russia have already declared their willingness to implement it, the Russian media reported.

Some Russian governors have enthusiastically supported the idea, hoping for an economic boost.

Various politicians believe that such benefits for entrepreneurs are associated with a number of risks, for example, the risk that entrepreneurs will re-register their businesses. In order to work out mechanisms to minimize such risks the law will bear a trial character.