The Simplified Taxation System (STS) is a special tax regime for small and medium-sized businesses in Russia. It replaces several taxes with a single one and significantly simplifies accounting.
Two STS Options
STS "Income"
The base rate is 6% of total income. Expenses are not deducted. The tax can be reduced by the amount of insurance contributions: for sole proprietors without employees — up to 100%, for employers — up to 50%.
Best suited for: IT companies, consulting, freelancers — businesses with high margins and low expenses.
STS "Income Minus Expenses"
The base rate is 15% of the difference between income and expenses. If expenses exceed income, a minimum tax of 1% of income is paid.
Best suited for: retail trade, manufacturing — businesses with a large share of expenses.
How to Choose a Regime
If expenses are more than 60% of income, the "Income Minus Expenses" regime is more advantageous. If less than 60%, the "Income" regime is better. Break-even formula: Expenses = Income × (1 − 6/15) ≈ 60% of income.
Conclusion
Calculate your STS tax using our calculator. To calculate employee personal income tax, use the personal income tax calculator.
