The Analysis of the Taxation Systems of Small Business in Russia

The question of the right choice of the taxation system is very important for small businesses because it allows reducing tax burden and investing into further development of business. Generally, it makes possible to strengthen the economy of the country. Besides tax burden, small businesses have to face tax risks and tax audits that follow. Proper evaluation and early identification of tax risks can help to avoid additional tax burden. This thesis examines the main taxation systems for small businesses in the Russian Federation and their content, identifies their advantages and disadvantages, and highlights several characteristic features of small business taxation in the USA. The practical part of the thesis considers the tax burden and net profit for every possible taxation system of the business entity of the individual entrepreneur A.V. Matrosov and justifies his selection of the optimal taxation system. Moreover, the tax burden and net profit for entrepreneur A.V. Matrosov are calculated in case of the alternative place of activity. In addition to the choice of the optimal taxation system, types of tax audits and methods of accounting tax risks are considered, and tax risks connected with tax audit are assessed for the individual entrepreneur A.V. Matrosov.