Patent or USN ("simplification") for individual entrepreneurs: which is better

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Let's look at the differences between a patent and the USN. Various types of taxation system designed for entrepreneurs allow you to choose the most optimal option. But any mistake can be fraught with additional expenses. The two most common types are the simplified system and the patent. What would be better to choose? It is quite difficult to answer unequivocally which is more profitable for an individual entrepreneur. Here you need to consider the type of activity along with the total number of employees (if any) and annual profitability.

IP work on the simplified tax system

Among the features of "simplified" are the relative ease of accounting along with reporting and a small tax burden. Such a system is provided specifically for individual entrepreneurs and small businesses. You can switch to the simplified tax system if:

• The total value of all property is less than one hundred million rubles.
• Number of employees less than one hundred.
• Annual return below fixed amount.

The following categories may be an exceptionEntrepreneurs:

• Notaries with lawyers.
• Representatives of the gambling business and pawnshops.
• Producers of excisable products.
• Those who, in view of the scope of their activities, pay the agricultural single tax.
• Companies that are engaged in the sale or extraction of minerals (the exception in this case are useful common resources).

Now let's talk about the types of simplified system.

Types of "simplified"

USN for entrepreneurs, as a rule, is of the following types:

• Six percent "simplified". In this case, it is expected to pay 6% of the total profitability, along with indispensable contributions for employees and yourself personally to the Pension Fund and the compulsory he alth insurance service. A large number of such declarations under the simplified tax system for 2018 were submitted.
• Fifteen percent type. Assumes payment of 15% of profit minus expenses. As in the first case, payments to the above services for yourself and your employees are mandatory here.

When choosing between the simplified tax system and a patent, one must take into account the difference in the offset and calculation of insurance premiums. In the event that a person works alone and calculates a single tax with "simplification", then quarterly contributions can be reduced, but not more than 50%.

IP work on a patent

This taxation system is quite simple and understandable. Its meaning is as follows: an individual entrepreneur buys a patent for that typeactivity in which he is actually engaged and pays for it (it is possible for several months, but not more than one year). Until 2013, this system was called USN based on a patent. Now it's just PSN.

True, not every entrepreneur can choose this type of taxation, which is regulated by Article No. 346 of the Tax Code. First of all, his type of activity must necessarily be on the list of permissible ones. In addition, the entrepreneur must have no more than fifteen employees, and the profit cannot exceed sixty million a year.

Thinking about what will be more profitable for a businessman (patent, USN), one must take into account the price of the latter. It turns out that by purchasing it, the entrepreneur declares that his potential profit is equal to a certain amount. This is beneficial, first of all, to those whose profitability is higher.

In the event that the income is lower, then the transition from "simplified" to a patent may not bring benefits. You can always find out its cost for different types of activities on the website of the Federal Tax Service, where you just need to select your region. The price usually varies depending on where you live.

Difference from "simplified"

What is the difference between a patent and the USN? As a rule, it is as follows:

• STS income is taxed on the entire amount of income received.
• On the PSN, they are taxed on potential income, regardless of the fact of its receipt. In the event that the profit of the entrepreneur actually exceeds the amount of potential earnings, thenyou will not have to pay extra taxes.

What other differences between a patent and the USN can be called?

• On the simplified tax system, insurance premiums reduce the amount of tax.
• On the PSN, the premium does not reduce the value of the patent.

USN or a patent for individual entrepreneurs - which is more profitable?

Simplified is a system that has been worked out over the years, which allows entrepreneurs and various institutions to work. It was created specifically for small organizations that have a small cash flow along with a limited staff.

But for some groups of taxpayers such a system is contraindicated. We are talking about notaries, entrepreneurs on agricultural tax, payers of excise taxes and others. Unlike PSN, in this case they allow the use of an unlimited number of types of classes in one mode. Thus, answering the question of which is better, it must be said that everything directly depends on the circumstances in which a business is launched or developed.

Let's talk below about the use of the simplified tax system and a patent at the same time.

Insurance premiums

In relation to entrepreneurs, the minimum amounts of contribution deductions are applied, which are established at the legislative level and depend on the minimum wage. The amount of annual transfers may remain at the level of previous years, or increase due to an increase in the minimum wage.

Entrepreneurs pay contributions using the following rates:

• Contributions to the TSO in the amount of twenty-six percent of the total withoutany distribution to the funded and insurance parts, regardless of the actual age of the person.
• Transfer to CHI in the amount of five percent of the total.
• In case of exceeding the basic income of three hundred thousand rubles, an additional amount of one percent of the violated limit is paid for pension insurance.

The contribution to social insurance is transferred by entrepreneurs voluntarily. Thanks to insurance, individual entrepreneurs have the opportunity to receive disability benefits. Such persons must fully pay the premiums for the year preceding the occurrence of the insured event.

Declaration

A fairly common question from individual entrepreneurs on PSN (patent taxation system) is whether they are required to fill out a declaration at the end of the year or not. The answer in this case will be quite simple: if a businessman conducts activities that fall under a patent, then it definitely does not need to be handed over. But the declarations on the simplified tax system for 2018 must be transferred to the tax office.

Transition

So, the transition to this type is carried out only for the activity option for which it was issued. When the entrepreneur continues to conduct other types of work, then they may well be taxed according to the "simplification". The transition from the simplified tax system to a patent is allowed at any time during the year. To do this, you only need to submit an application to the tax authority for a patent at the place of residence, no later than ten days before the start of activity.

The tax authority is considering an application for a patent withinfive days from the date of receipt of the paper from the entrepreneur. Based on the result of consideration of the application, a decision is made to issue a PSN or a decision to refuse.

The reasons for this may be:

• Complete discrepancy between the declared type of activity and the list of types that fall under the application of the PSN.
• Incorrect patent expiration dates.
• Tax arrears.
• Violation of the conditions for switching to PSN.

It is worth noting that quite often one has to deal with the opinion of businessmen that the patent system for taxation is very profitable. And even those citizens who, due to the conditions of its use, cannot switch to it, are trying to find ways to get there anyway. Can there be an IP on a patent and a simplified tax system at the same time?

Combination order

Let's say an entrepreneur is a taxpayer of the simplified tax system and within one calendar year he switched to PSN for a separate type of entrepreneurial activity. That is, they combine two special tax regimes at once. Then, according to the explanation of the Ministry of Finance of Russia, at the end of the tax period, he undertakes to submit a "simplified" declaration to the IFTS, in which the profitability is determined without taking into account profit from entrepreneurial activity, in relation to which the SIT is applied.

You must also consider the following. Businessmen use the simplified tax system with the object of taxation in the form of income, which is reduced by the amount of expenses and SIT. In this case, the minimumtaxation is calculated only on profits received from entrepreneurial activities in respect of which the simplified system was used. Profitability from entrepreneurship, in respect of which SIT was applied, is not taken into account in this situation.

Headcount

Another important condition limiting the use of the combination of the simplified tax system and the PSN is the number of employees that the employer has the right to attract:

• Simplifier has the right to employ no more than one hundred people within the tax period.
• Patent entrepreneurs cannot manage more than fifteen employees.
• The businessman himself is not included in the number of registered employees, among other things, they do not count employees who are at the time of registration in the decree.

For both special regimes, a calendar year is recognized as a tax period, but it happens that patents are issued not for one-year periods, but for shorter periods. Therefore, the combination in such situations reduces the tax period until the moment for which a patent is issued.

From here it is necessary to draw a conclusion that at certain times a different number of employees is available to entrepreneurs. Therefore, their accounting by type of activity, where a combined tax system is used, must be kept separately. For a business that is taxed under the simplified tax system, there should be no more than a hundred personnel per year, and in the area of \u200b\u200bactivity for which a patent is obtained,this number should not exceed 15 people.