The Effect of Simplified Profit Tax System on Firms' Behavior

In this paper, we consider the impact of the simplified tax system (STS) on the behavior of entrepreneurs in the region of the income threshold for Russian companies for the 2016-2018th year. For this, the developed early methodology is applied, which assesses how strongly the jump in the density of distribution of firms is shown immediately before the threshold value, above which tax control over firms is tightened. Regressions were constructed without taking into account excessive groupings for various territorial associations by fitting to a polynomial function. The parameter of excess bunching was also calculated, which reflects the presence of a concentration of firms in front of the income threshold. As a result, it was obtained that despite a strong change in the income threshold in 2017, by 2018, firms adapted to it and continue to underestimate their income.