Taxation planning as a method of decreasing tax expenses in Russian SMEs : case company X

The objective of the thesis work is to determine the principles of taxation planning which Russian small and medium-sized enterprises can use to decrease tax expenses. Thus, legal ways and methods associated with taxation planning which Russian small and medium-sized enterprises can use, and factors which they should consider are determined. Besides, Russian taxation administration and legislation, as well as taxation systems are introduced. The empirical part of the thesis work is based on a case company X. The case company X is a small motor transport company from St.-Petersburg, Russia. The company was able to decrease its tax expenses by transferring from the general taxation system to the simplified taxation system, which is a special tax regime established by the Tax Code of Russia. The process of the transfer to the simplified taxation system is analysed in terms of background of the case company, its reasons behind the transfer, legal procedures associated with the transfer, and results of the transfer. Empirical data is collected through documents inside the case company and interviews with its chief accountant. Results of the thesis work demonstrate that taxation planning should not be underestimated by small and medium-sized enterprises. By using legal ways and methods of taxation planning, the business can decrease its tax expenses and improve its financial situation. At the same time, factors considered in taxation planning are specific in context of Russian enterprises. Accordingly, the main principle of taxation planning for small and medium-sized enterprises in Russia is to understand the specificity of Russian taxation environment