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Small-scale Business: The Fiscal Incentives And Money Grants Provided For Small Enterprises.

Small-scale business: the Fiscal incentives and money grants provided for small enterprises.

Among money grants and governmental grants for small business there are special programs created by government to help in development of small business. And in this article we will talk about such governmental helping programs. So if you are interested in it or if you are the owner of the small business so this article will be perfect for you.

Small enterprises constitute separate group which uses special privileges at discharge of tax on profit. One of privileges under the profit tax is provided only for those from them which make and simultaneously process of agricultural and economic production, make food, the consumer goods, construction materials, techniques, medical products and items of medical appointment, and also build objects of housing, industrial, social and nature protection appointment (including it is repair-civil work).

The privilege consists in that these small enterprises do not pay the profit tax in first two years of work provided that the gain from the indicated kinds of activity exceeds 70 % of a total sum of a gain from realization of production by them (works, services). In the third and fourth year of work they pay the tax in size accordingly 25 % and 50 % from the established tax rate on profit if the gain from the indicated kinds of activity constitutes over 90 % of a total sum of a gain from realization of production by them (works, services).

Thus the gain total sum does not join a gain received from realization of main funds both other property, and the incomes having a special tax assessment method (for example, dividends under shares, debenture interests).The indicated privilege does not extend on the enterprises created on the basis of the liquidated (reorganized) enterprises, their branches and structural divisions, including the state as a result of privatization state and municipal enterprises.
Other privilege consists in that at definition of the taxable profit of a small enterprise the profit directed on building is excluded from it, reconstruction and updating of the basic production assets, development of new engineering and technology.

Small enterprises can have privileges at realization of some kinds of the activity, manufacturing commodity items, in the general order. For example, getting the profit directed on financing of capital investments, on charitable installments. Small enterprises can have also privileges under the profit tax in the general order in the presence of invalids working in them. If invalids constitute not less than 50 % from total number of workers the tax rate on profit goes down on 50 %.

At definition of the rights to the indicated privileges average number joins workers consisting in staff, including moonlighter, and also not consisting in staff working under turnkey contracts and other contracts of civil-law character.

It is very important that government, despite this recession is not leaving to assist small businesses. And small business grants can be a true helper right now.

But, surely, you should remember that today the fight for small business grants as well as for other kinds of grants is more fierce. This is logical – more businesses need them. So before you start your battle for the small business grants, please check out this blog for more info about grant industry.

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