Specific Transition of Plant-Growing Enterprises of the Agro-Industrial Complex in the Donetsk Republic to Taxation System Adopted in the Russian Federation

Abstract

The article studies theoretical and practical aspects of the effective tax legislation for agricultural producers. The current situation in agricultural industries is analyzed. Special attention was paid to plant-growing industry, as it has strategic importance for food security providing. Taking into account the fact that plant-growing industry is represented mainly by individual entrepreneurs working in conditions of unstable political and economic circumstances the authors investigate its challenges and prospects during the transition period, when the Donetsk Republic joins the Russian Federation. The authors study consequences of passing from fixed agricultural tax adopted in the Donetsk Republic to the unique agricultural tax in accordance with taxation system of the Russian Federation. On the basis of this analysis recommendations were put forward dealing with tax rate reduction aimed at agricultural workers’ support and restoration of industry.

Keywords

• tax rate
• unique agricultural tax
• food security