When can I switch to UTII: procedure, terms, features

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

The transition from one tax regime to another is not uncommon in the practice of legal entities and individual entrepreneurs. The reason for this is most often the natural desire to optimize their tax expenses. Often, the transition also occurs for the reason that the activities of a businessman have ceased to meet the requirements of a particular tax regime.

There are also many cases when it is necessary to make the transition urgently, without waiting for the start of the new tax year. And now - regarding the single tax on imputed income. When can I switch to UTII mode? What are the features of the transition at different times of the year? Are there cases in which such a transition is unrealistic? We will provide answers to these and related questions in the article.

Characteristic

Before we figure out how to switch to UTII correctly, we will provide a small description of this tax regime.

What does "a single tax on imputed income" mean? It is assumed here that the tax payments are accrued noton the profit already available to the entrepreneur or organization, but on the income that the taxpayer plans to receive in the future.

It is also important to note that not every businessman can choose such a mode. Only those firms and individual entrepreneurs that are engaged in certain types of activities that are clearly stated in OKVED and OKUN can switch to UTII. It's hard to say which ones exactly. After all, each of the regions of the Russian Federation selects certain categories from the list of such business activities that are open for the transition to UTII. Therefore, in each of the subjects of the state they are different.

From here, some difficulties are possible: in the native region, the entrepreneur freely carries out his activities while on UTII. But when moving to another region, he needs to change the tax regime, since in this subject such activity is no longer open for taxation under UTII.

Transition Opportunity

Can I switch to UTII? Let's go back a little to the past - until 2013, entrepreneurs and organizations engaged in certain categories of activities were "imputed" for sure. It was only in 2013 that this rule was abolished. The transition to such a tax regime is now voluntary - it depends only on the desire of the businessman himself.

So when can I switch to UTII? Organizations and entrepreneurs can plan the transition both at the beginning of the tax year, and on any other date.

There is only one condition here: the type of activity you are engaged in must bein your region open to the "Single tax on imputed income" regime. Let us now consider the features of the transition to UTII at different times of the year, from different taxation regimes

BASIC - UTII: features of the transition

When can I switch to UTII? When it comes to the main taxation regime (OSNO), this can be done at any time of the year at the request of the taxpayer. The transition in this case is quite simple: you need to apply with the appropriate application to the local tax office.

But here it is important not to forget to observe an important condition: the transition must be carried out no later than 5 days from the date of commencement of the work / provision of services open for "imputation". As for the season, the tax legislation of the Russian Federation does not impose any restrictions here.

Please note that for UTII, the reporting period is a quarter. Therefore, for the first time you pay tax payments according to the "imputation" based on the results of the first 3 quarterly months after your transition to this regime.

If you choose UTII after the OSNO in the middle of the year, then the tax base must be taken into account based on the actual duration of business activity in the month when your individual entrepreneur or LLC was registered with the tax as an "imputed" payer.

Basic rules for moving from OSNO

When can I switch to UTII with OSNO? We decided that this is possible on any date you wish. But at the same time, don't forgetabout important rules:

1. Be sure to carry out the procedure for restoring input VAT on both your fixed assets and other operations. Such restored VAT will subsequently be taken into account in the "income tax" column - the "other expenses" line.
2. In your income tax return, you should definitely take into account profits and expenses related to the period when your organization or individual entrepreneur was still under the main tax regime. This is done by filling out and submitting to the Federal Tax Service department an income tax return for the reporting period that was before the transition.

USN - UTII: features of the transition

When can I switch to UTII for individual entrepreneurs, organizations that have previously deducted payments under the simplified taxation system? There is an important limitation here: businessmen on the simplified tax system cannot switch to any other tax regime in the middle of the tax period. And here it is the calendar year.

When can I switch from "simplified" to UTII? Only at the beginning of the tax year. However, there is an exception to this rule. A businessman can at any time switch from the simplified tax system to a different tax regime in the event that his income for the reporting period exceeded 60 million rubles.

But here it is important to note that in this state of affairs, the "simplifier" will be automatically transferred to the main mode - BASIC. And immediately after the quarter in which the excess was recorded.

When can I switch to UTII in this case? Starting next calendar year. This is a condition for the former"simplified" remains the same.

Transition when registering an individual entrepreneur or organization

How to switch to UTII in the middle of the year if you registered as an entrepreneur / established an organization not with the beginning of the reporting period? Note that when starting a business activity, all taxpayers automatically find themselves on the OSNO.

Here it is important to have time to submit to the tax office an application for the transition to UTII within 5 days from the start of your activity in the status of an individual entrepreneur or commercial firm. Of course, in doing so, you must perform work or provide services that are open to "imputation" in your area.

If you do not receive such a notification to the tax office, then you will remain by default in the main tax regime.

Documentation for IP

From what date can I switch to UTII? As we have determined, when registering an individual entrepreneur / company, as well as when transferring from OSNO, this does not matter. But when switching from the simplified tax system - only with the beginning of the tax year.

To switch to UTII, an individual entrepreneur needs to prepare the following documentation for a visit to the tax office:

• Actually, a statement about the transition to "imputation".
• Identity document - civil passport.
• Certificate of tax registration of IP.
• Certificate confirming the state registration of IP.

Documents for organizations

As for the founders of an LLC, in order to transfer their organization to the UTII regime, they need to prepare the following papers and documents for the tax authorities:

• Statement on the transition to taxation by "imputation".
• Certificate of state registration of the organization.
• Certificate of official tax registration of LLC.

Possibility of partial transition

Let's also touch on this scenario. In some cases, it is legally allowed that entrepreneurs and organizations bring their activities under two taxation regimes. For example, BASIC is combined with "imputation".

This applies to organizations and individual entrepreneurs who carry out several types of activities according to OKVED at once. Some types of work are taxed under the basic regime. But other types of works/services are open categories for imputed taxation in a given region.

It is important to observe an important rule here: keep separate records of profits and waste by type of activity on different taxation systems. We add that separate accounting will also be needed if taxpayers use UTII for various types of activities opened in their subject for the application of "imputation".

When is the transition impossible?

The transition to "imputation" in some cases may be completely closed to firms and entrepreneurs. In particular, UTII cannot be selected under the following conditions:

• The number of working collective is more than100 people.
• Other individuals / legal entities have a share in the authorized capital of the company more than 25%.
• An enterprise by its type is a simple partnership.
• Individual entrepreneur switched to the simplified tax system based on a patent.
• An individual entrepreneur or organization was previously under the ESH tax regime (special tax regime for those engaged in agricultural activities).

Restrictions within scope of activity

In addition, it will not be possible to switch to UTII due to restrictions in the field of business activities, also established by law. Here are the most important ones as an example:

• Those transport organizations with more than 20 vehicles in their fleet cannot switch to UTII.
• Retail outlets will not be able to select this mode if their sales area exceeds 150 sq. m.
• As for the advertising business and the sphere of PR, only those firms that are engaged in the field of advertising placement and distribution can apply UTII here. But already manufacturers of advertising structures, developers of promotion plans, lessors of advertising space will not be able to switch to this mode.
• The use of "imputation" is also impossible in the case when an individual entrepreneur or organization works not only with individual clients, but also with legal ones.

UTII attracts entrepreneurs and LLC founders with a number of attractive tax conditions. Go to it withBASIC, when registering a business, as we have established, it is possible at any time of the year - the main thing is to comply with simple conditions. But the transfer from the simplified tax system is more difficult - only with the beginning of the year. It is not at all possible to switch to UTII today from the ESHN.