Single simplified tax for individual entrepreneurs

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

Individual entrepreneurs who are just starting a commercial activity, as well as legal entities, have the opportunity to choose one of two taxation systems: simplified or general. Our article will discuss the simplified form of taxation for individual entrepreneurs, the amount of tax and other important aspects on the topic.

Category concept

Under the simplified taxation system (abbreviated version - USN) should be understood as a special tax regime that implies a certain procedure for paying tax payments and is aimed at representatives of medium and small businesses. A simplified tax for an individual entrepreneur or a legal entity implies exemption from many payments, simplified reporting forms, as well as the relative ease of accounting. Obviously, the listed conditions attract businessmen and predetermine their choice. Today, most entrepreneurs in the Russian Federation work on this special regime.

The essence of the system

Consider the essence of the tax onsimplified taxation system for individual entrepreneurs and legal entities. It is worth noting that businessmen who have chosen simplified taxation do not pay to the budget:

• Value Added Tax (VAT). An exception here is the situation if marketable products are imported into the territory of the Russian Federation.
• Property tax. In addition to objects that are assessed in accordance with the cadastral value, as well as those included in a special list by local government structures.
• Personal income tax on income from business activities. It should be added that in this case winnings and prizes, bank interest, dividends are not taken into account.

So, instead of the listed taxes, a simplified taxation system for individual entrepreneurs is used. What taxes are not paid, we considered. However, how much is due? Here we are talking about a fixed amount of payments. It is important to add that taxpayers operating under the simplified regime, in any case, bear a reduced burden in terms of taxes, and also submit much less reporting.

Who benefits from this?

Before choosing a simplified tax (STS) for an individual entrepreneur or organization, it is advisable to answer the following question: will your clients include VAT payers? If the answer is yes, then it will be unprofitable for them to cooperate with you, because they will not be able to reimburse the value added tax from the cost of the marketable products (services, works) purchased from you. So, with a high probability they will refuse to cooperate, especially when it comes to a large amount of the contract. It is much more profitable for VAT payers to work with the same value added tax payers.

It must be kept in mind that the customer can be retained. To do this, it is advisable to give him a discount on the amount of tax. However, this approach will not work for you. If your clients include the same simplified people, individuals or tax payers, UTII, then you can safely consider a simplified tax for an individual entrepreneur or organization. After all, it promises many benefits.

We found out that it is usually unprofitable for VAT payers to purchase marketable products or use services from counterparties working on a "simplification" basis.

Tax rate for individual entrepreneurs

Next, we will analyze the current tax rate for 2019 for individual entrepreneurs according to the simplified system. So, entrepreneurs work at a rate of 15% or 6%. It depends on the chosen object of taxation:

• "Income".
• "Income minus expenses."

It is worth noting that in some regions of Russia there may be other tax amounts under the simplified form of taxation for individual entrepreneurs, lower. The fact is that the current law on the territory of the country gives the subjects the right to determine their own rate in the range from 1 to 6% for the “Income” object, as well as from 7.5 to 15% for the “Income minus expenses” object.

Also, with some luck, some businessmen may not pay tax at all for the first two years. This is justified by paragraph 4 of Article 346.20, which gives the right to subjects of the Federation to introduce for individual entrepreneurs workingunder the simplified system, tax holidays.

An entrepreneur who has chosen a simplified tax for individual entrepreneurs can take advantage of these holidays in the following cases:

• He is registering as a sole trader for the first time.
• Engaged in social, industrial, scientific activities or provides household services to the population.
• Vacations introduced by the law of the subject of the Russian Federation, where the individual entrepreneur is registered.
• Income from the types of activities listed in the second paragraph for the simplified tax for individual entrepreneurs for the year is at least 70 percent of the total revenue.

In this case, local authorities have the right to introduce additional restrictions to provide holidays:

• average number of employees during the year;
• the maximum amount of income received in a year.

How to calculate a simplified tax for individual entrepreneurs in your region, whether tax holidays are relevant and under what conditions - all these and other nuances can be found in the local branch of the Federal Tax Service.

So let's conclude. Single simplified tax rate for individual entrepreneurs:

• 6 percent - for the "Income" object;
• 15 percent - for the object "Income minus expenses";
• 0 percent - for entrepreneurs eligible for tax holidays.

Do not forget that the subjects of the Federation have the right to establish reduced tax amounts for individual entrepreneurs under the simplified system.

Who has the right to apply the simplified tax system?

Newly registered organizations or individual entrepreneurs just need to make sure that their type of activity is not prohibited for the application of the special regime. In accordance with Article 346.12 of the Tax Code of the Russian Federation, lawyers and notaries, insurers, organizers of gambling, private employment agencies, and manufacturers of excisable commercial products do not have the right to use a single simplified tax for individual entrepreneurs. It is also not available to professional participants in the securities market.

Already operating individual entrepreneurs can switch to a simplified tax for individual entrepreneurs only when the number of employees does not exceed one hundred people.

In the Tax Code in force in the country, there is a limit on the residual value of fixed assets of 150 million rubles, as well as on income for the nine months of the previous year of 112.5 million rubles. However, these restrictions only apply to organizations. Individual entrepreneurs have the right to pay tax for the year for individual entrepreneurs under the simplified system and at the same time not look back at the income of the previous year and the cost of fixed assets. That is why entrepreneurs do not fill in these indicators in the notification in accordance with form 26.2-1. However, later, that is, already working on the simplification, they must comply with the named limits.

It should be noted that those entrepreneurs who have more than 100 employees in the state, as well as those who develop the activities named in paragraph 3 of Article 346.12 of the current on the territory of the Federation of the Taxcode.

USN with the object "Income"

We examined which tax under the simplified system for individual entrepreneurs is relevant today, and also listed the relevant types of activities and features of payments. Next, let's analyze a simplified system with the "Income" object.

Taxpayers who choose this option consider tax payments solely from income. That is why the factor how much the entrepreneur has suffered losses does not matter for taxation. What is meant by the term "income"? These are the funds that a businessman receives from buyers for his commercial products, services or work, as well as non-operating income and property received on gratuitous terms. Non-operating income is nothing more than income from participation in other organizations, fines and pen alties in favor of an individual entrepreneur, exchange rate differences, interest on loans, surpluses, debts written off, etc.

Payment calculation

How to pay a simplified tax for an individual entrepreneur with an “Income” object? To calculate the payment to the state budget, it is necessary to take the amount of cash receipts for the reporting period and multiply by the tax rate. For clarity, let's analyze the corresponding example.

An individual entrepreneur who chose the simplified system earned 100,000 rubles over a certain period. The tax payment in this case amounted to 6 percent of this amount, that is, 6,000 rubles, and this did not depend on how muchthe presented period was the expenses of the businessman.

It is important to keep in mind that an individual entrepreneur undertakes to take into account income in a special Book of Accounts. It should only include revenue. The expenditure part of the table is not filled. It should be added that through a service called "My Business", KUDiR is formed automatically. Incomes are accounted for on a cash basis, in other words, at the time they are received at the cash desk or on a current account. In the process of conducting a tax audit, the employees of the Federal Tax Service in this case do not check the debit transactions of a simplified entrepreneur. In addition, on a simplified system with the “Income” object, only income is shown in the declaration and KUDiR. Tax payments are also repaid exclusively from income. Expenses are tax deductible.

Simplified system with the object "Income minus expenses"

This system is somewhat more complicated. Having considered how to pay a simplified IP tax with the “Income” object, it is advisable to move on to it. In this case, only the difference between expenses and income is taxed, there are some distinctive features of accounting, as well as the concept of a minimum tax payment. For clarity, let's analyze an example of calculation.

The revenue of a businessman for a certain period is 350,000 rubles. Expenses - 220,000 rubles. The tax payment for the period can be calculated as follows: (350 - 220 thousand) x 15%=19,500 rubles.

Be aware that not all expenses are deductible. Only those are relevantwhich are specified in Art. 346.16 of the Tax Code, operating on the territory of the Russian Federation. All of them must be documented and substantiated. The fact that the list of expenses that are deducted from income is closed is to some extent an advantage for the entrepreneur. The fact is that this minimizes the likelihood of disputes with tax officials, as, for example, in the case of income tax payments.

Let's consider the features of accounting. It is worth noting that everything is quite simple with income: they are also taken into account when they enter the cash desk or to a current account. But with costs it is somewhat more difficult, because certain rules must be taken into account. So, expenses should be entered in KUDiR only when the marketable products or services are both shipped and paid for. If any of the presented conditions is not implemented, it is impossible to take into account the costs in the process of calculating the payment to the state budget. In other words, the KUDiR will contain the date of either payment for the commercial product or its shipment (depending on which of the named events came later). Consider an example.

Conditional LLC transferred an advance payment for furniture to the supplier on December 20th. The last one delivered the goods on January 15th. The organization will reflect the costs of it only in the new year, that is, on January 15th. If the furniture was delivered in December and paid for only in January, the expenses would also be reflected in January.

The second rule states that the cost of marketable products purchased for the purpose of resale can be written off as expenses only after sale. Let's take an example. SP sells and installs air conditioners. ATIn March, he purchased five air conditioners, each costing 15,000 rubles. During March, he sold and installed three air conditioners. So, he recorded their cost (153=45,000 rubles) as expenses in KUDiR in March. Moreover, the IP wrote off the remaining two air conditioners in the warehouse as expenses only after they were sold.

Finally, the third rule assumes that the cost of fixed assets (acquisition, construction or reconstruction) is an expense only after they are put into operation and only within the limits of the amounts paid. It must be borne in mind that the cost is written off in equal parts quarterly (as a rule, on the last date of the quarter) until the end of the year. In other words, if the purchase was made in the first quarter, then the write-off is relevant for 1/4 part throughout the year, if in the second - for 1/3 part, in the third - for 1/2 part, in the fourth - the entire cost will be entered into QUDiR last date of the fourth quarter.

Minimum tax payment

What taxes are not included in the simplified taxation system for individual entrepreneurs, we have considered. It is worth noting that the InIP, which has chosen the object of taxation "Income minus expenses", pays to the state budget even when expenses exceed income.

When the reporting year ends, the taxpayer must calculate two amounts:

• 15 percent of the difference between costs and revenue, i.e. regular tax payment;
• 1 percent of revenue.

If the second amount is greater, then the statethe budget based on the results of the year is paid exactly by it (minus the indicated advance payments), and not by the tax payment calculated in the usual way. Consider an example.

According to the results of labor activity for the year, the income of entrepreneur P. amounted to 2 million rubles, and expenses - 1.9 million rubles. It is advisable to make two calculations:

1. (2,000,000 - 1,900,000) x 15%=15,000 rubles.
2. 2,000,000 x 1%=20,000 rubles.

The minimum tax payment was higher than usual. So, according to the results of the year, 20 thousand rubles should be paid to the state budget. If an entrepreneur transferred advances during the annual period, then the minimum tax must be paid minus them.

It should be borne in mind that the difference between the minimum and ordinary tax, an individual entrepreneur has the right to record next year in expenses, and thereby reduce taxation income. In the analyzed example, the difference is 20,000 - 15,000=5,000,000 rubles. Their individual entrepreneur P. next year has the right to include in expenses and deduct from the tax base.

The minimum tax is calculated at the end of the year, but this rule does not apply to advance payments. Even if the businessman works at a loss and the difference between costs and revenues is negative, he will still have to pay the minimum tax payment.

It is important to know that on a simplified system with an “Income minus expenses” object, tax is paid on the difference between expenses and income. The declaration and KUDiR show both. In the process of accounting for expenses, it is necessary to observecertain norms. At the end of the year, in addition to the regular tax, the minimum tax should also be calculated.

What reporting should I submit?

It is important to know that only one declaration per year is prepared for the single tax. It is handed over to the IFTS no later than April 30 of the next year. In addition, individual entrepreneurs must fill out a special book of income and expenses (KUDiR). According to the results of the year, it is printed out, and then stitched. It must be remembered that the inspectors of the Federal Tax Service may require it for verification at any time.

If an entrepreneur has no employees, in addition to the declaration, he does not have to hand over anything. In turn, employers must provide certain documents to the following structures:

• Federal Tax Service: 2-personal income tax certificate (every year); information on the average headcount (each year); calculation of insurance premiums (every quarter); 6-personal income tax certificate (every quarter).
• Pension fund: SZV-length of service form (every year when an employee retires; SZV-M form (every month).
• Social Insurance Fund (4-FSS report - every quarter).

If in the process of activity it becomes necessary to pay personal income tax, VAT, declarations on them are submitted within the time limits determined by the current legislation in the country. If it becomes necessary to pay tax on the property complex, the entrepreneur pays only the amount indicated in the notification of the Federal Tax Service Inspectorate. In this case, the declaration is not surrendered.

The annual declaration on the simplified tax system by individual entrepreneurs must be submitted before April 30. Employers on simplifiedsystem submit the same reporting as employers in other taxation regimes.

Conclusion

So, we have considered the category of a single simplified tax for individual entrepreneurs: the pros and cons, the main features and distinctive features. In addition, they presented illustrative examples for a full understanding of the theoretical part.

It is advisable to fix the material. So, how to switch to a simplified taxation system? This procedure is extremely simple. It is only necessary to send a notification drawn up in accordance with Form 26.2-1 to the Inspectorate for Taxes and Duties within the established time limits. Notifications can be submitted:

• Newly created individual entrepreneurs together with registration documentation or no later than thirty days after registration, in other words, from the date of making the corresponding entry in the EGRIP.
• Individual entrepreneurs who are already engaged in the conduct of a particular activity under a different taxation regime (until December 31 of this year).

It should be borne in mind that the transition to the considered taxation system has a notification character. That is why, in response to a request for permission from the Inspectorate for Taxes and Duties, one should not wait. So, before submitting the relevant notification, the taxpayer needs to carefully read the rules and make sure that he actually has the right to use this special regime. If during the audit it turns out that the simplified system was applied in an unreasonable way, the taxpayer will be charged additionalpayments for the entire term, as with OSNO. In addition, he will be issued fines, as well as obligated to provide the missing reporting on VAT and personal income tax.

We advise you to keep the second copy of the notice in form 26.2-1 with the stamp of the Tax Inspectorate. It may happen that your notification letter is lost in the IFTS. Thus, the second copy will serve as evidence that you actually filed the notice and used the simplified system in a reasonable manner. This will save you from all kinds of proceedings with the tax authorities and pen alties.

It is worth knowing that a newly registered individual entrepreneur will be among the payers of the simplified tax system from the first day of his economic activity, and one that transfers from a different taxation system - directly from 01.01 of the next year. Several other rules are relevant when switching from UTII. So, if a businessman for one reason or another has lost the right to use UTII without waiting for the calendar year to begin, he has the right to file a notice to use the simplified system within thirty days from the date of termination of the obligation to pay UTII.