SIMPLIFIED TAXATION SYSTEM: BASIC CONCEPTS AND DIGITAL TRANSFORMATION IN THE CONSTRUCTION INDUSTRY

ABSTRACT

The article examines the Simplified Taxation System (STS) within the context of digitalization in the construction industry, focusing on the objects and criteria for taxation. The article investigates how automation, cloud-based solutions influence taxation procedures. This analysis aims to improve the efficiency and sophistication of the tax system for better business management.

Keywords: Simplified Taxation System, tax digitalization, construction sector, tax object, tax optimization, BPMN, tax law changes, accounting automation.

The STS is a special tax regime that introduces a distinct procedure for tax payments and is designed for small and medium-sized businesses. [1] Under the STS, certain taxes are replaced by a single tax. For instance, corporate profit tax for organizations or personal income tax for individual entrepreneurs is substituted with a unified tax. Furthermore, taxpayers are generally exempt from Value Added Tax (VAT), except in specific cases, as well as property tax and the unified social tax, which are replaced by fixed insurance premiums.

The key advantages of the STS include simplified accounting, maintained through a book of income and expenses. Additionally, all tax liabilities are consolidated into a single payment. Regional tax rates can also be reduced: down to 1% for the "Income" tax base and down to 5% for the "Income minus Expenses" base. The standard federal rates are 6% for the "Income" base and 15% for the "Income minus Expenses" base for most STS taxpayers.

The choice of the tax object depends on the proportion of expenses to income. If documented expenses exceed 60% of income, the "Income minus Expenses" base is more advantageous; otherwise, the "Income" base is preferable. This can be derived from a formula. The tax under the "Income" base is: N1 = D * 0.06, where D represents income for the period. The tax under the "Income minus Expenses" base is: N2 = (D - R) * 0.15, where R represents documented expenses. The "Income minus Expenses" base is more beneficial when (D - R) * 0.15 < D * 0.06. Simplifying this inequality yields R/D > 0.6, meaning the share of expenses exceeds 60%.

Significant changes to the STS came into effect in 2025. The primary amendment is the introduction of Value Added Tax (VAT) for companies whose annual revenues exceeded 60 million rubles in the previous year. For such companies, a VAT rate of 5% is applied in 2025 for revenues between 60 and 250 million rubles, increasing to 7% in 2026. Companies with revenues below 60 million rubles remain exempt from VAT. Additionally, the increased tax rates of 8% and 20% for exceeding established limits have been abolished. [2]

The digital transformation of the economy is significantly impacting the application of the Simplified Taxation System within the construction industry, fostering optimization and enhancing the efficiency of tax-related processes. In the article "Digitalization of Taxation: Trends and Prospects," A.A. Kucherchuk states: "One of the key trends in tax digitalization is the transition to electronic reporting and declaration, which improves data accuracy and transparency, minimizes the potential for errors, and accelerates verification processes by tax authorities." [3] Manual bookkeeping of income and expenses is increasingly recognized as an outdated practice, leading to a mass transition among STS entrepreneurs towards specialized software and digital services. This shift not only simplifies but also automates the generation of financial statements.

According to O.N. Abbasova, changes in the STS are linked to the proliferation of information technologies and the replacement of paper-based income and expense accounting with subsequent online filing of the STS tax return. [4] A prominent example is the Automated STS (A-STS), which emerged as a result of digitalization. An automated tax accounting system has been developed specifically for companies with high expenses. It uses advanced algorithms for automatic tax calculation using data from online sales registers and bank statements. The current trend towards digitalization of regional industrial complexes encourages the government to introduce digital platforms to improve interaction with businesses. These platforms simplify the process of obtaining regional tax benefits and submitting electronic reports.

Let's turn to the consideration of the use of STS in the construction industry. Digital methods of income and expense monitoring are among the key indicators, so they will receive special attention. Another 2025 change to the STS concerns construction: developers operating under equity participation agreements are now exempt from VAT when performing work on the construction of residential buildings, non-residential premises, and parking spaces.

The construction sector is also undergoing changes driven by digital technologies. For effective financial management, the industry has seen the implementation of enhanced cost accounting systems and cloud services that synchronize a range of activities in real-time: material procurement, equipment operation, and the receipt of funds. The centralization of information resources enables continuous monitoring, rapid adaptation to changing conditions, increases operational efficiency, reduces data loss risks, and enhances decision-making effectiveness. Efficient resource allocation and project management contribute significantly to a company's productivity growth and financial stability.

The development of business intelligence systems remains important because they help to compare actual expenses with the planned budget, which allows you to adjust the budget in a timely manner and prevent unforeseen expenses that increase the tax burden. PIX BI, AW BI and PM are most often used in construction — all these systems determine which types of work or materials lead to high costs and offer alternative options. For those companies that use the "Income minus Expenses" tax base, this helps optimize the structure of the tax base.

The development of this trend is leading towards an ecosystem of proactive tax administration, where digital platforms not only facilitate the reporting process but also provide businesses with analytical tools for optimizing their tax burden. In the future, this could result in predictive taxation systems that, using historical data and machine learning, will automatically suggest the most efficient STS application strategies to companies, considering their industry specifics and financial cycles. This transformation alters the very philosophy of business-state interaction: it evolves from a relationship based on control into a service partnership, where technology reduces bureaucratic burdens and ensures a transparent environment for managerial decision-making.

Thus, the STS is becoming increasingly attractive for implementation in the construction industry, a trend directly driven by its profound digital transformation. This tax regime has evolved from a simple, convenient accounting mechanism into a sophisticated strategic management tool. It enables companies using this system not only to react promptly to market fluctuations but also to engage in a continuous cycle of cost optimization. Ultimately, the integration of modern technologies creates a solid foundation for enhancing service quality and strengthening a firm's competitive advantages.

References:

1. Federal Tax Service of Russia [Electronic resource]. - Access mode: https://www.nalog.gov.ru/rn77/taxation/TAXES/usn/ Accessed: 01.11.2025
2. ConsultantPlus Tax Reform 2025 [Electronic resource]. - Access mode: https://www.consultant.ru/news/400/#anchor_3 Accessed: 01.11.2025
3. Kucherchuk A. A. DIGITALIZATION OF TAXATION: TRENDS AND PROSPECTS // Bulletin of the Academy of Knowledge. 2024. No.2 (61). URL: https://cyberleninka.ru/article/n/tsifrovizatsiya-nalogooblozheniya-tendentsii-i-perspektivy (accessed: 04.11.2025).
4. Abassova O.M. Improving the development of small businesses / O.M.Abassova // Bulletin of the Academy of Knowledge. 2020. No.3(38). P.10-14.