Enhanced earnings and tax revenues noted in Omsk region
**Increase in Income for Omsk Region Taxpayers Using Simplified Tax System**
Taxpayers in the Omsk region experienced a significant boost in income in 2024, with a 12.6% increase in earnings for those utilising the "income minus expenses" regime under the Simplified Tax System (STS). This growth is primarily attributed to a tax reform implemented from January 1, 2025, which adjusted income thresholds and tax rates for STS taxpayers [1].
The reform raised the income limit for the STS "income" object by 12.6%, enabling taxpayers to report higher income amounts under this system before transitioning to other tax regimes or higher rates. This adjustment is part of a broader tax overhaul in Russia, which includes changes to personal income tax rates and limits for individual entrepreneurs and businesses applying the STS [1].
The reform in the Omsk region has resulted in a total tax base for STS reaching 317 billion rubles in 2024, representing a 13% increase from the 2023 figure. The total volume of tax payments to the Omsk region's budget in 2024 was 10.6 billion rubles, marking a 17% increase from the previous year.
In addition, 263 newly registered individual entrepreneurs in the Omsk region utilised "tax holidays" in 2024, saving a total of 104 million rubles. This savings can be directed towards business development. Furthermore, more than 6,600 "simplified" taxpayers in the Omsk region took advantage of preferential reduced tax rates, collectively paying 6.7 billion rubles.
The number of companies with increased tax rates also rose in 2024, with 177 companies having their tax rates increased to 8% and 20% due to income exceeding 199.3 million rubles. Almost half of these companies are engaged in trade and catering.
Of the 50,400 taxpayers registered in the Omsk region in 2024, 69% are individual entrepreneurs, and the rest are organisations. Expenses for taxpayers in the Omsk region using the simplified tax system grew by 11.3% in 2024. The income of these taxpayers using the "income minus expenses" regime increased by 10.6% in 2024 [1].
[1] Source: Regional Tax Service of the Omsk Region, 2024 Annual Report.
"I'm not sure if the tax reform's impact on business finance is limited to the Omsk region alone, as the text mentions changes to personal income tax rates and limits for individual entrepreneurs and businesses applying the Simplified Tax System nationwide."
"In the context of the tax reform, it would be interesting to know if businesses in the Omsk region are seeing an increase in profit after the 12.6% boost in income for individuals using the Simplified Tax System, and if these funds are being reinvested back into the business."
