diff --git a/cvat-ui/src/actions/annotation-actions.ts b/cvat-ui/src/actions/annotation-actions.ts
index bc49fb02..b3d0eabf 100644
--- a/cvat-ui/src/actions/annotation-actions.ts
+++ b/cvat-ui/src/actions/annotation-actions.ts
@@ -85,6 +85,7 @@ export enum AnnotationActionTypes {
     EDIT_SHAPE = 'EDIT_SHAPE',
     DRAW_SHAPE = 'DRAW_SHAPE',
     SHAPE_DRAWN = 'SHAPE_DRAWN',
+    SETUP_TAG = 'SETUP_TAG',
     RESET_CANVAS = 'RESET_CANVAS',
     UPDATE_ANNOTATIONS_SUCCESS = 'UPDATE_ANNOTATIONS_SUCCESS',
     UPDATE_ANNOTATIONS_FAILED = 'UPDATE_ANNOTATIONS_FAILED',
@@ -855,6 +856,20 @@ export function drawShape(
     };
 }
 
+export function setupTag(
+    labelID: number,
+    objectType: ObjectType,
+): AnyAction {
+    return {
+        type: AnnotationActionTypes.SETUP_TAG,
+        payload: {
+            labelID,
+            objectType,
+            activeControl: ActiveControl.SETUP_TAG,
+        },
+    };
+}
+
 export function shapeDrawn(): AnyAction {
     return {
         type: AnnotationActionTypes.SHAPE_DRAWN,
diff --git a/cvat-ui/src/components/annotation-page/standard-workspace/controls-side-bar/setup-tag-popover.tsx b/cvat-ui/src/components/annotation-page/standard-workspace/controls-side-bar/setup-tag-popover.tsx
index 810b5b5e..3edaa2aa 100644
--- a/cvat-ui/src/components/annotation-page/standard-workspace/controls-side-bar/setup-tag-popover.tsx
+++ b/cvat-ui/src/components/annotation-page/standard-workspace/controls-side-bar/setup-tag-popover.tsx
@@ -17,7 +17,9 @@ interface Props {
     labels: any[];
     selectedLabeID: number;
     onChangeLabel(value: string): void;
-    onSetup(): void;
+    onSetup(
+        labelID: number,
+    ): void;
 }
 
 function setupTagPopover(props: Props): JSX.Element {
@@ -61,7 +63,7 @@ function setupTagPopover(props: Props): JSX.Element {
             </Row>
             <Row type='flex' justify='space-around'>
                 <Col span={24}>
-                    <Button onClick={onSetup}>
+                    <Button onClick={() => onSetup(selectedLabeID)}>
                         Tag
                     </Button>
                 </Col>
diff --git a/cvat-ui/src/containers/annotation-page/standard-workspace/controls-side-bar/setup-tag-popover.tsx b/cvat-ui/src/containers/annotation-page/standard-workspace/controls-side-bar/setup-tag-popover.tsx
index c6d42bf3..5714bc0a 100644
--- a/cvat-ui/src/containers/annotation-page/standard-workspace/controls-side-bar/setup-tag-popover.tsx
+++ b/cvat-ui/src/containers/annotation-page/standard-workspace/controls-side-bar/setup-tag-popover.tsx
@@ -7,13 +7,19 @@ import { connect } from 'react-redux';
 
 import {
     CombinedState,
+    ObjectType,
 } from 'reducers/interfaces';
 
+import {
+    setupTag
+} from 'actions/annotation-actions';
 import { Canvas } from 'cvat-canvas';
 import SetupTagPopoverComponent from 'components/annotation-page/standard-workspace/controls-side-bar/setup-tag-popover';
 
 interface DispatchToProps {
-    onTagSetup(): void;
+    onTagSetup(
+        labelID: number,
+    ): void;
 }
 
 interface StateToProps {
@@ -23,8 +29,10 @@ interface StateToProps {
 
 function mapDispatchToProps(dispatch: any): DispatchToProps {
     return {
-        onTagSetup(): void {
-            dispatch();
+        onTagSetup(
+            labelID: number,
+        ): void {
+            dispatch(setupTag(labelID, ObjectType.TAG));
         },
     };
 }
@@ -47,7 +55,7 @@ function mapStateToProps(state: CombinedState): StateToProps {
     };
 }
 
-type Props = StateToProps;
+type Props = StateToProps & DispatchToProps;
 
 interface State {
     selectedLabelID: number;
@@ -69,10 +77,11 @@ class DrawShapePopoverContainer extends React.PureComponent<Props, State> {
         });
     };
 
-    private onSetup(): void {
-        const { canvasInstance } = this.props;
+    private onSetup(labelID: number): void {
+        const { canvasInstance, onTagSetup } = this.props;
 
         canvasInstance.cancel();
+        onTagSetup(labelID);
     }
 
     public render(): JSX.Element {
@@ -84,6 +93,8 @@ class DrawShapePopoverContainer extends React.PureComponent<Props, State> {
             labels,
         } = this.props;
 
+        this.onSetup = this.onSetup.bind(this);
+
         return (
             <SetupTagPopoverComponent
                 labels={labels}
diff --git a/cvat-ui/src/reducers/annotation-reducer.ts b/cvat-ui/src/reducers/annotation-reducer.ts
index b9615fe7..27697cb5 100644
--- a/cvat-ui/src/reducers/annotation-reducer.ts
+++ b/cvat-ui/src/reducers/annotation-reducer.ts
@@ -418,6 +418,29 @@ export default (state = defaultState, action: AnyAction): AnnotationState => {
                 },
             };
         }
+        case AnnotationActionTypes.SETUP_TAG: {
+            const {
+                labelID,
+                objectType,
+                activeControl,
+            } = action.payload;
+
+            return {
+                ...state,
+                annotations: {
+                    ...state.annotations,
+                },
+                canvas: {
+                    ...state.canvas,
+                    activeControl,
+                },
+                drawing: {
+                    ...defaultState.drawing,
+                    activeLabelID: labelID,
+                    activeObjectType: objectType,
+                },
+            };
+        }
         case AnnotationActionTypes.MERGE_OBJECTS: {
             const { enabled } = action.payload;
             const activeControl = enabled