What types of activities are eligible for the simplified tax system?
Both organizations and individual entrepreneurs can choose the simplified tax system, as long as their activities are not included in the list of exceptions (for example, banks, insurance companies, manufacturers of excise goods, etc.). Otherwise, trade, services, manufacturing, public catering, and many other activities are eligible for the simplified tax system. The main requirement is to comply with the established limits on revenue and employee numbers.
How to choose between "income" and "income minus expenses"?
- "Income" - the standard rate is 6%. This option is advantageous if you have few confirmed expenses or if they account for a small portion of your revenue. The tax is calculated based on the total amount of income, but it can be reduced by the amount of insurance contributions.
- "Income minus expenses" - the standard rate is 15%. This option is suitable if you have a significant amount of official and economically justified expenses (such as purchasing goods, renting, and paying salaries). The tax is calculated based on the difference between income and expenses, but even if expenses are almost equal to income, the minimum tax is 1% of revenue.
Restrictions on employee numbers and revenue
- Annual revenue: no more than 490.5 million rubles (as of 2026). If you exceed this limit, you will automatically switch to the general tax system.
- Number of employees: no more than 130 people.
- Residual value of fixed assets: no more than 218 million rubles.
- Limit for exemption from VAT: if your revenue exceeds 20 million rubles per year, you will have to pay VAT, but you will still be eligible for the simplified tax system until your revenue reaches 490.5 million rubles.
Before choosing your tax object, consider the following: if your expenses are less than 60% of your income, it is often more advantageous to choose "income." If your expenses are higher, choose "income minus expenses." Additionally, keep in mind the new limits: starting from 2026, revenue control will become even stricter, and if your revenue exceeds 20 million rubles, you will be required to pay VAT.
