The number of registered individual entrepreneurs has increased in the North Caucasus

On average in Russia, the number of individual entrepreneurs increased by 8.3%. At the same time, in Chechnya and Ingushetia the growth was 19%, in Dagestan – 17.4%. Forbes reports this with reference to the Federal Tax Service.

The Federal Tax Service says that there is an explanation for this trend in the North Caucasus Federal District. Chechnya and Kalmykia have lower rates of the simplified taxation system (USN). If a small business changes its registration in order to save on taxes, then criminals can use a simplified individual entrepreneur (as, for example, in Kalmykia, where the growth of individual entrepreneurs has reached 60%) to cash out funds. At the same time, all experts note that in the North Caucasus, where a high share of shadow business has historically strengthened, the number of individual entrepreneurs is growing due to the whitewashing of the economy.

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