St. 346 of the Tax Code of the Russian Federation: simplified taxation system

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

Each entrepreneur, when starting his own business, must decide which tax regime he will use during work. The USN system, which is simplified, is considered attractive for many areas of activity. It can be used by both individuals and companies. The simplified taxation system is regulated by Art. 346 of the Tax Code, therefore, any businessman must figure out under what conditions this regime can be used, how to switch to it, how the tax is calculated, when the declaration should be submitted, and what other nuances should be taken into account so that the law is not violated.

STS concept

This system is represented by a simplified mode for calculating tax. This suggests that entrepreneurs and companies are exempted from the need to calculate and pay numerous taxes, as they are replaced by a single fee.

The basic rules for the application and calculation of tax under this regime are contained in Art. 346 of the Tax Code of the Russian Federation. The simplified taxation system is considered easy to apply, so it is notit is usually required for entrepreneurs to use the services of professional accountants.

Due to the use of this mode, the time and effort spent on tax calculation and reporting are minimized. Other features of the USN include the following:

• main taxes are replaced by a single fee;
• not required to pay personal income tax for entrepreneurs, and companies - income tax;
• no need to pay VAT if the company does not supply goods for export;
• Property tax is not calculated if the cadastral value is not defined for objects.

The simplified taxation system according to the Tax Code of the Russian Federation is considered beneficial for every entrepreneur. But companies and individual entrepreneurs can apply it only if certain conditions are met. Compliance must be checked before a transition notification is submitted. If during the work the operating conditions of the company change, this will become the basis for the transition to the OSNO in automatic mode.

Who can apply the system?

The use of the simplified tax system is allowed only subject to certain conditions. If in the course of work they are violated, then automatically there is a transition to the OSNO. The use of the simplified taxation system is permitted under the following conditions:

• income during the year is less than 150 million rubles;
• the company should employ no more than 100 people;
• the price of fixed assets is less than 150 million rubles;
• if other companies participate in the company, then their share should notexceed 25%.

Until 2017, it was allowed to work under this regime with an annual income of up to 60 million rubles, but now this figure has been significantly increased.

Who can't use the regime?

There are certain organizations that, even if they meet the above requirements, cannot use this system. The application of the simplified taxation system is prohibited for such enterprises:

• companies with open branches;
• banks and insurance companies;
• PFs that are non-government;
• investment funds;
• firms participating in the securities market;
• budget institutions;
• pawn shops;
• firms and individual entrepreneurs specializing in the manufacture of excisable goods or the extraction and sale of minerals (with the exception of common minerals);
• enterprises organizing gambling;
• companies and individual entrepreneurs working on UAT;
• specialists in private practice, and this includes notaries or lawyers;
• firms participating in a production sharing agreement;
• companies in which other enterprises participate, the share of which exceeds 25%;
• firms with more than 100 employees;
• enterprises whose fixed assets cost over 100 million rubles;
• foreign firms;
• firms with annual income exceeding RUB 150 million
• enterprises that meet all the requirements of the simplified tax system, but they did not apply for the transition in a timely manner.

Until 2016, representative offices were included in this list, but now they can apply the simplified tax system.

Types of USN

When choosing a simplification, entrepreneurs decide on their own which variety will be applied. The simplified taxation system is presented in two forms:

• "Income" subject to a 6% rate.
• "Income minus expenses", on which 15% is calculated from profits.

Regional authorities are given the right to reduce these indicators to 1% if the "Income" option is used, and if the "Income minus expenses" system is used, then the rate can be reduced to 5%.

During the transition to this mode, entrepreneurs indicate in the application which option they will use.

Benefits of using the mode

Using the simplified tax system has many undeniable advantages. In connection with the application of the simplified taxation system, entrepreneurs and organizations enjoy the following benefits:

• replaced by a single fee are other significant taxes, which include VAT, personal income tax and property tax, but the exception will be if a certain property has a cadastral value, so property tax will have to be paid for it;
• accounting is greatly simplified, since it is only required to keep KUDiR and annually submit a declaration, therefore, there is often simply no need for the services of a professional accountant, since the entrepreneur himself can easily cope with this task;
• SPs canreduce the tax on insurance premiums in the amount of 100% if there are no officially employed workers, and if there are hired specialists, then the fee is reduced by 50% of insurance transfers;
• reducing the payment to the Federal Tax Service for the trading fee;
• if an entrepreneur immediately switches to the simplified tax system during initial registration, then he can take advantage of special tax holidays, so he can work at a rate of 0% for two years.

Especially attractive for every entrepreneur is the plus that allows for two years of work not to pay the fee. This allows the new company to develop effectively.

Disadvantages of the regime

The transition to the simplified tax system has not only positive aspects, but also some significant disadvantages. The simplified taxation system in 2018 has its drawbacks:

• impossible to employ more than 100 hired specialists;
• you cannot switch to the mode of an enterprise engaged in the production of excisable goods;
• it is necessary to notify about the transition to the regime in a timely manner, taking into account the provisions of Art. 346, 13 NK;
• it is impossible to combine USN with ESHN;
• People in private practice cannot use the regime;
• companies and individual entrepreneurs may suddenly lose their right to use this mode, for example, if, as a result of one transaction, it turns out that income per year exceeded 150 million rubles, so the company will be automatically transferred to OSNO;
• lack of VAT leads to the fact that manycounterparties are forced to refuse cooperation, as they will not be able to apply to the Federal Tax Service for a tax refund;
• if there are losses as a result of work, then when leaving this mode, it will not be possible to count losses in the new period;
• if cash transactions are made, then it is necessary to purchase cash registers;
• It is difficult to determine expenses when determining the tax base, and there are certain restrictions, so some expenses cannot reduce income;
• it is impossible to use property or social deductions for an entrepreneur.

Therefore, before using this mode, you need to evaluate all its pluses and minuses. The simplified taxation system is considered an excellent choice for start-up entrepreneurs.

The nuances of the work of LLC on the simplified tax system

It is allowed to apply this regime not only to entrepreneurs, but also to companies. The simplified taxation system under the RF Tax Code can be used by firms subject to the rules:

• transition is allowed from the moment of registration of the company within 30 days after registration or from the beginning of the new year, and the Federal Tax Service must be notified of the transition before December 31;
• about the intention to work under this regime, it is required to draw up and send a corresponding notification to the Federal Tax Service;
• if the deadlines for filing the notification are violated, it will be impossible to use the system;
• LLCs using the simplified tax system can use the same accounting methods as with the OSNO.

The rest of the requirements and conditions are the same for both companies and individual entrepreneurs. Simplifiedthe taxation system for LLCs is usually chosen by new firms on the market, as there is no information about what the approximate amount of income and expenses will be.

Rules for switching to mode

All entrepreneurs planning to start their own business should think in advance about what system they will use to calculate taxes. It is important to notify the Federal Tax Service in advance that the simplified taxation system will be applied. The tax period under this system is equal to the calendar year, so the transition is allowed only from the beginning of the next year.

Initially, when registering a company or individual entrepreneur, you can immediately send a notification of the transition with registration documents.

If by the end of this year the entrepreneur fails to notify the Federal Tax Service that work is planned on the simplified tax system next year, then it will be impossible to use this regime. Before submitting a notification, you should make sure that the company is fully compliant with the requirements of the regime.

Tax calculation rules

The tax period for this regime is a year, but a quarter is considered a reporting period. If the simplified taxation system is used, then the tax is calculated on an accrual basis from the beginning of the year. Therefore, during the year it is required to transfer 3 advance payments for 1 quarter, half a year and 9 months. The remaining amount is transferred in the following year minus advance payments. At the same time, the declaration is submitted.

To simplify calculations, you can use online calculators orinvite qualified specialists.

Calculation of tax under the simplified tax system "Income"

It is advisable to use this type of regime with a high margin on goods or services. The simplified taxation system "Income" involves the collection of 6% of all cash receipts for a specific period of time. The resulting value can be reduced by entrepreneurs:

• if an individual entrepreneur does not have officially employed employees, then the tax on all insurance premiums is reduced;
• if there are employees in the company, then advance payments are reduced by 50% of the insurance premiums for the entrepreneur and employees.

If an entrepreneur hires a specialist during the year, even on a temporary basis, then he loses the right to reduce the tax by 100% throughout the year, regardless of the period of time during which the employee will work in the company.

In order to reduce your down payments, you need to pay insurance premiums in the same quarter. Tax calculation involves the use of the formula:

Advance payment amount=tax base (cash receipts for the quarter)6% - insurance premiums - past advance payments (not used in the calculation for the first quarter).

The calculation is considered simple, since it is enough just to have confirmation of all the company's income for a quarter or another period. Therefore, the simplified income taxation system is most often used by entrepreneurs.

Calculation of tax with the simplified tax system "Income minusexpenses"

This kind of mode is considered quite difficult. This is due to the fact that it is important to support all expenses with official documents, and you also need to know which expenses can be used to determine the tax base.

The simplified taxation system "Income - Expenses" also implies the need to make advance payments for each quarter of work. The calculation process takes into account certain nuances:

• from all cash receipts for a particular quarter, you must subtract expenses for the same period of time;
• expenses can include insurance premiums for the entrepreneur and employees;
• when calculating the payment for the year, it is allowed to add the loss for the previous year to expenses;
• the resulting tax base is multiplied by 15%, but in some regions the percentage may be reduced by local authorities to 5%;
• already transferred advance payments are deducted from the received annual value.

Thus, it is quite easy for a businessman to calculate the tax for the simplified taxation system. For this, the standard formula is used:

Advance payment amount=(tax base (revenue minus official expenses)15%) - past advance payments within one year.

When calculating the annual fee, you can additionally deduct the loss of the previous year.

If the margin on goods and services is low, then this simplified taxation system is usually used. The costs applied in the calculation process must be supported by official documents, andthey should also relate to the main activities of the company or individual entrepreneur.

Payment due dates

When using the simplified tax system, quarterly advance payments are required, so a minimum of 3 payments are made per year. In the new year, the final fee is calculated.

Funds must be transferred by the 25th day of the month following the last month of the quarter, but for the year, individual entrepreneurs pay the last payment by April 30, and enterprises by April 1.

Is tax paid on loss?

Often entrepreneurs are faced with the fact that their activities do not bring any positive results. In this case, you will still have to pay the minimum tax.

Therefore, if the company has a loss at the end of the year, then it is required to pay 1% of all officially confirmed income of the enterprise. In this case, the minimum tax is paid. The loss can be included in the costs of the next 10 years, and if it is not completely covered, then it will be canceled.

Declaration rules

Entrepreneurs and firms on the simplified tax system must not only correctly calculate and pay the fee on time, but also generate reports. The declaration on the simplified taxation system is drawn up only once a year.

The document is submitted by entrepreneurs until April 30 of the next year, and by companies - until April 1.

If the last day falls on a holiday or weekend, it is transferred to the next working day. The declaration form of the simplified taxation system can be downloaded on the website of the Federal Tax Service or taken in paper form at the branch of this service. You can fill out the document on a computer, and you can also print the form and enter data manually.

When filling out the declaration, all income and expenses related to the activities of the simplified tax system are taken into account. Difficulties may arise if this regime is combined with other tax systems, so separate accounting is required.

What additional reports are needed?

In addition to the declaration, individual entrepreneurs and companies need to maintain KUDiR, represented by a book of expenses and income. When forming and maintaining it, the following rules are taken into account:

• since 2013 it is not required to certify a document with the Federal Tax Service;
• Individual entrepreneurs should not generate other reports, but companies must additionally keep accounting, so a balance sheet and numerous other reports on income and expenses, property and cash flow are compiled.

During tax audits, information from KUDiR is especially carefully studied.

Cash discipline

Enterprises that accept, store or issue cash, thus making various cash transactions, are required to strictly observe cash discipline.

From 2017, it is necessary to install equipment to use the online cash register.

Rules for combining the simplified tax system with other systems

STS can be used for almost all activities, subject to certain conditions.

Combining this mode is allowed only with PSN or UTII. Under other conditions, you will have to choose either OSNO or ESHN. AtIn combining regimes, it is important to allocate income and expenses for different systems. Usually there are no difficulties with this process when it comes to cash receipts. It is rather difficult to attribute expenses to any system.

But there are always costs that cannot be attributed only to the simplified tax system or another regime. For example, salary, and in this case such expenses are divided in proportion to income. Often the entrepreneur himself does the accounting. The simplified taxation system is considered to be simple in terms of reporting, so there is no need to hire a professional accountant.

How are entrepreneurs deregistered?

The process can be carried out on the basis of the entrepreneur's application or in automatic mode. If in the course of work the company does not meet the requirements of the simplified tax system, for example, the revenue exceeded 150 million rubles, then the transition to the OSNO automatically occurs.

If the entrepreneur himself decides on the need to change the regime, then he must apply to the Federal Tax Service to switch to another system. The document must be drawn up in two copies, and it is submitted within 15 days after the transition to the new regime.

STS and sales tax

In the capital, entrepreneurs working on the simplified tax system and specializing in trading activities must pay a trading fee. It does not matter whether the work is carried out in stationary or non-stationary outlets. The exception is trading in a market or fair.

Entrepreneurs can shoppingthe fee is included in the costs of the simplified tax system. Additionally, when using the USN "Income" system, this fee can be deducted from income.

Thus, the simplified tax system is a demanded taxation system. It can be used by many entrepreneurs and companies. For this, certain conditions must be met. Entrepreneurs need to figure out how to switch to the system, how the tax is calculated, how the declaration is formed and submitted, and what other nuances must be taken into account for successful work. If tax is not paid and reports are not submitted in a timely manner, this will cause very high fines to be charged.