STS restrictions: types, income limits, cash limits

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

STS is a demanded taxation regime related to simplified systems. It can be used by entrepreneurs or companies. But at the same time, there are some limitations of the simplified tax system that businessmen should be aware of. Therefore, not always different enterprises or individual entrepreneurs can use this mode. It is important to take into account the chosen direction of work, the income received, the cash limit and other nuances.

The concept of limits on the simplified tax system

STS restrictions are represented by various indicators, on the basis of which entrepreneurs can use this regime to conduct business. Based on these restrictions, businessmen and firms are selected who can use the simplified regime for calculating and paying taxes.

Limits are regularly changed and adjusted, not only by federal authorities, but also by regional ones. Therefore, before applying for the transition to this mode, it is important to make sure that the chosen line of work fits this system.

Legislative regulation

All restrictions on the use of the simplified tax system are fixed onlegislative level. Much information is contained in numerous articles of the Tax Code. Entrepreneurs should be guided by the following regulations:

• ch. 26.2 The Tax Code contains the rules on the basis of which the transition to the simplified tax system is carried out, and also describes how income and expenses for this regime are correctly calculated;
• FZ No. 401 indicates the limits of income and the value of the company's assets, under which it is allowed to use the simplified tax system during work;
• Order of the Ministry of Economic Development No. 698 contains data on which coefficient should be used to calculate the tax;
• FZ No. 248 includes codes on the basis of which the applied types of activities are classified under the simplified tax system.

Additionally, the content of numerous letters from the Ministry of Finance is taken into account.

What taxes are paid?

Many entrepreneurs and firms want to use the simplified regime while working, as it has many advantages. The main advantage is the ability to avoid paying numerous taxes. Therefore, the single tax simplified tax system replaces the following types of fees:

• income tax;
• fee from the property of a company or individual entrepreneur;
• ESN;
• VAT.

But at the same time, business leaders still have to pay insurance premiums and tax for the use of water facilities. An advertising fee is added.

Who can't use?

USN restrictions should be studied by every entrepreneur planning to use this regime to conductentrepreneurial activity. When choosing this system, it takes into account what income the company receives per year of work, how many hired specialists work in the organization, and also what is the cost of the fixed assets used. The following companies cannot use the simplified tax system:

• not meeting headcount, revenue or asset value requirements;
• owning branches;
• contained in art. 346.12 NK.

It will not be possible to use the simplified regimes for banking organizations or pawnshops, as well as companies involved in the sale or purchase of securities, selling excisable goods or specializing in mining. It is not allowed to use the simplified tax system for lawyers or notaries.

System Benefits

Using the simplified tax system has many advantages for entrepreneurs and firms. Key benefits include:

• taxpayers choose whether to charge 6% on revenue or 15% on net income;
• single tax replaces numerous types of fees;
• many regions independently lower rates by 1% as a measure to support small businesses;
• no need to deal with complex accounting, therefore, it is enough only to submit an annual tax return;
• reducing the amount of tax due to paid insurance premiums.

Thanks to the above positive parameters, many entrepreneurs want to use the simplified tax system during work. But for this, restrictions on the transition of the simplified tax system are taken into account, sinceif, if they are available, you still use this simplified regime, then this will certainly lead to certain problems with the tax office.

What are the limits?

Restrictions for individual entrepreneurs on the simplified tax system are the same as the requirements for companies. The main such limits include:

• number of employees for one year of work should not exceed 100 people;
• residual value of assets used during business activities should not be more than 150 million rubles;
• revenue for the year of operation should not exceed 150 million rubles.

The above restrictions are the same throughout Russia. Regions may even tighten these requirements a little. Since 2017, the deflator coefficient used in the process of calculating the fee is 1,481. In 2017, a moratorium was introduced on its increase until 2020.

Profit limits

Restriction of the simplified tax system on revenue is considered a significant moment for every large company that wants to use the simplified regime for calculating tax. This limit is 150 million rubles. in year. This requirement applies to every company or entrepreneur.

The limit of the simplified tax system on revenue is constantly monitored by employees of the tax inspectorate. If there is an excess of the set value by at least 1 ruble, then this leads to an automatic transition of the company to OSNO. If the company continues to calculate taxes according to the simplified tax system, then this will be the basis for attracting the company toadministrative responsibility and recalculation of taxes.

Even the indiscretion of a businessman cannot be a reason for avoiding responsibility. Therefore, under the simplified tax system, turnover restrictions should be carefully monitored by entrepreneurs. Violation of this requirement will result in the following pen alties:

• for the lack of notification that the company has stopped using the simplified tax system, 200 rubles are paid;
• on the basis of the declaration on the OSNO, 5% of the accrued fee amount is paid;
• 1 thousand rubles are paid for the absence of a declaration on time.

The above fines are minimal, so you should notify the Federal Tax Service in a timely manner that there have been excesses of the income limit on the simplified tax system.

How much profit is taken into account?

There are no requirements and restrictions on spending in the law. If a company plans to switch to the simplified tax system, then over the last 9 months of operation, its income should not exceed 121 million rubles.

In order to take into account revenue restrictions on the simplified tax system for individual entrepreneurs, it is important to understand how much profit counts. Not all cash receipts of a company or entrepreneur are used to calculate the fee, so only the following income is taken into account:

• from the sale of products or assets;
• extraordinary income represented by revenue not remitted in prior periods, and also includes rent, foreign exchange income, interest on deposits or cash receipts from equity interests in other companies.

All of the abovecash receipts must be registered in KUDiR. The following types of income are not required to be considered:

• share capital contributions;
• transfer of real estate as collateral from contractors;
• contributions intended to increase the compensation fund;
• receiving grants from the state;
• transfer of funds from foreign sponsors;
• fines;
• difference after revaluation of existing securities;
• compensations paid by insurance companies or other firms based on a court decision;
• winnings.

Therefore, the accountant of the company must be well versed in limiting the amount under the simplified tax system in order to know exactly what income is taken into account for these purposes.

Asset Value

STS restrictions apply in addition to the value of the company's fixed assets. In 2017, this limit was increased to 150 million rubles.

To identify the possibility of using the simplified regime, the residual value is taken into account. To determine it, it is advisable to contact independent appraisers who form a special report based on the results of their work. A copy of this document is transferred to the Federal Tax Service.

Limits on the number of employees

Another limitation faced by entrepreneurs who want to take advantage of the simplified regime is the limited number of hired specialists. It is not allowed for the company to employ more than 100 people in one year.

According to the simplified tax system, the number limitworkers is a significant point. It takes into account not the number of employees engaged in labor activities in the company in a specific period of time, but the number of employed specialists for the calendar year of work. Therefore, at the end of the year, each company must submit to the Federal Tax Service a special certificate on the average number of employees. Based on this document, it is determined whether the company can continue to use the simplified tax system.

Checkout limits

Many businesses use cash registers during operation. For the use of the simplified tax system, 6% restrictions apply even to the cash limit. It is set at the end of any business day.

It is not allowed to use cash if a deal is made for 100 thousand rubles.

Cash limit is easy to calculate. To do this, it is enough to add up the revenue for any period of time, which should not exceed 92 days. The amount received is divided by the number of days in the billing period. This value is multiplied by the number of days the money is deposited in the bank, usually once a week. The amount received is the cash limit.

How to switch to USN?

If an entrepreneur is sure that he fits this regime on the basis of all requirements, then he can switch to the simplified tax system. The procedure consists in the need to draw up a special application in the form No. 26.2-1. The following information must be entered in the document:

• company name or individual entrepreneur;
• OGRNIP or PSRN;
• TIN of the entrepreneur;
• displayedperformance indicators confirming that the applicant can actually use the simplified tax system;
• indicates the object of taxation.

If employees of the Federal Tax Service receive information that a certain taxpayer for some reason does not fit under the simplified tax system, then the transition to the OSNO automatically occurs.

Loss of the right to use the simplified tax system

STS is a simplified regime that can only be used by small companies that meet numerous requirements. Therefore, often large organizations are faced with the fact that for various reasons they lose the right to use this system. For example, their revenue per year may exceed 150 million rubles. In addition, the number of fixed assets often increases, so their value exceeds 150 million rubles.

The taxpayers themselves must keep track of these excesses. Based on this, they submit a notification to the Federal Tax Service that work on the simplified tax system has been terminated, so the company is switching to OSNO. If the company itself does not complete this process, then the employees of the Federal Tax Service will in any case find out about the excess. This will still lead to the transition to the OSNO, but in addition, entrepreneurs will be held administratively liable.

Can I switch back to the simplified tax system?

If a company at a certain point in time has lost the right to use the simplified tax system due to exceeding the established limits, then it has the opportunity to apply this regime again if the revenue for the year of operation is reduced or part of the assets is sold.

Run againthe transition is possible only from the new calendar year. For this, a special statement is drawn up, which indicates the results of the enterprise.

Combination with other modes

When using the simplified tax system, entrepreneurs can combine this regime with other systems, which include UTII, OSNO or the patent system. But at the same time, it is important to take into account what income and expenses relate to a particular regime.

Often, businessmen deliberately reduce their income under the simplified tax system, transferring them to other modes in order to maintain the ability to use this system. Such actions act as tax evasion, therefore, during the inspection, employees of the Federal Tax Service will in any case reveal such violations, so the entrepreneur will be held accountable.

If companies hide their assets or income at all, using various fraudulent schemes, then citizens in senior positions in such an organization will be held criminally liable.

Conclusion

STS is a sought-after taxation regime that companies or entrepreneurs can use. It has numerous advantages over other systems. But before using it, it is important to understand the numerous limitations.

If entrepreneurs exceed the established limits during work, they are automatically transferred to the OSNO. Attempts to hide income or reduce assets are the basis for bringing the entrepreneur and other company executives to administrative or criminalresponsibility.