Regional tax regulation of small and medium business development

Stimulating the development of small and medium businesses may be possible owing to special methods of tax regulation in regions. In this connection the investigation of stimulating opportunities of special tax regimes at regional and local levels was carried out. The paper should assess and review the state of small business in Russia; held grouping of regions in the number of small businesses allows to prove the priority problems of its development. The authors study in detail the problems of administration and regional regulation of the new patent system of taxation, introduced in 2013, taking into account its implementation in the framework of a simplified system. The study conducted by means of monographic and statistical and economic methods has led to the following results: 1) the taxation conditions for small and medium businesses are actually determined at the federal level, and are reflected in the Tax Code of the Russian Federation; under the general system of taxation there are practically no opportunities for small and medium enterprises; 2) the absence of tax incentives for medium businesses adversely affects their number, that had decreased twice by 2013; 3) the use of the patent system of taxation, concentrating the opportunities of regional tax regulation, demands the improvement of potential annual entrepreneurs' revenue differentiation, taking into account regional peculiarities; 4) informational support of regional tax regulation is insufficient.