Assessment of regional differentiation of market conditions affecting the income of entrepreneurs

Abstract

The article discusses the problem of the lack of taking into account the factor of regional appreciation when assessing the solvency of taxpayers to determine the maximum revenue limits for the purpose of applying a simplified taxation system. Given the current regional differentiation of market conditions in Russia, small enterprises operate in unequal economic conditions. Guided by the principles of fairness and equality of taxation, it is proposed to clarify the procedures for classifying an economic entity as a small enterprise. By applying the methodology for taking into account regional differentiation of market conditions, it is possible to determine the real income of entrepreneurs in a particular region, which are subject to accounting for taxation mechanisms. It is also proposed to take into account an additional increasing factor to the revenue received by taxpayers when carrying out activities in areas with difficult climatic and geographical conditions. A methodology was developed for calculating the corrective territorial coefficient when determining the income of an entrepreneur, recommended for use in taxation under the simplified tax system. The proposed methodology for calculating the territorial correction coefficient when determining the income of an entrepreneur is preferable in at least three respects: (1) It takes into account the factor of regional price increases on a more representative set of indicators that take into account market conditions; (2) It takes into account the factor of territorial differentiation, the rise in cost of life processes of the population and the economic conditions of the region; and (3) The principle of equal taxation of income of entrepreneurs is observed, taking into account territorial differentiation.