Tax deductions for individual entrepreneurs: how to get, where to apply, main types, necessary documents, rules for filing and conditions for obtaining

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

Russian legislation provides for a real opportunity to return part of the tax paid for an individual entrepreneur. But often businessmen either do not know about this possibility at all, or do not have sufficient information about how it can be realized.

Can an individual entrepreneur receive a tax deduction, what kind of benefits are provided for by Russian law, and what are the conditions for their registration? These and other questions will be discussed in this article.

The concept of tax deduction

This is a certain amount of money that reduces the tax base. Simply put, it is the legal right of all physical. individuals and individual entrepreneurs of Russia to reduce the amount of accrued income tax. But in order to be able to issue them, certain conditions provided for by the current legal norms must be met. Great importancehas a tax system that a businessman uses.

No right to use the deduction

It is worth noting that not all entrepreneurs can take advantage of this benefit. Only those who pay tax at a rate of 13% have the right to apply. That is, this group does not include individual entrepreneurs using the simplified taxation system (STS) and the single tax on imputed income (UTII). Entrepreneurs using the unified agricultural tax (ENSH) cannot claim the use of the personal income tax deduction. The use of the patent also excludes the application of this tax preference.

Thus, the legislation does not allow the use of deductions for entrepreneurs working on various simplified taxation systems. However, if an individual entrepreneur combines his activities with activities as an employee, then in the second case he has the right to reduce the taxable base of personal income tax.

The tax deduction of an individual entrepreneur is made in accordance with applicable law as for an individual. This rule applies if the person is registered officially, and personal income tax is paid from his income.

Types of tax deductions

The main codified NPA of the tax legislation of the Tax Code of the Russian Federation provides for the following types:

1. Standard (they can be used by privileged categories of citizens), as well as deductions for children. The followingsize differentiation:

• 500 RUB – status of the Hero of the USSR;
• 1400 RUB – for the first and second child, adopted or born;
• 3000 RUB - for the third child, for disabled veterans of the Great Patriotic War and liquidators of the accident at the Chernobyl nuclear power plant;
• 6000-12000 rub. – for parents and guardians whose children study in schools and other educational institutions.

2. Social. This is an opportunity to return the money spent on education (children or your own), donations, insurance and pension contributions. In addition, the social deduction allows you to reduce the personal income tax base by the amount of funds spent on medical services.

So, if the taxpayer is studying at a university (regardless of the form of education), then he can use the privilege in question. The following points are important:

• presence of an agreement concluded with an educational institution in the name of the taxpayer;
• the presence of a document confirming the fact of payment for tuition.

Maximum refund is 120,000 rubles

The taxpayer can also receive a refund for paying full-time education for children. In this case, the same conditions must be met. But it is important that the child should be trained only in full-time education. The maximum amount to be returned is 50,000 rubles. per student.

It also provides for the possibility of reducing the taxable base for personal income tax and for treatment, both one's own and for the treatment of children, parents or spouses. Documents are required - facts of payment for services in medical institutions, medicines, andalso he alth insurance premiums.

The amount of the deduction cannot be more than 120,000 rubles.

3. Property. Provided for completed transactions with property, including the purchase and construction of real estate. An individual entrepreneur can issue a tax deduction when buying an apartment as an individual. The main thing is that he has an income from which 13% is deducted in the form of tax. The maximum refund amount does not exceed 260 thousand rubles. The maximum value of real estate from which you can receive a tax refund is 2 million rubles. When applying for a mortgage, this amount increases to 3 million rubles.

A businessman can also receive a tax refund for an apartment if it was purchased for the purpose of using it in the future in his professional activities. This is evidenced by the explanation of the Ministry of Finance No. 03-11-11/21776.

4. Professional. That is, a tax deduction for individual entrepreneurs for expenses incurred in the relevant activity. To use this type of benefit, documents confirming expenses are required: invoices, checks, contracts, etc. If it is impossible to provide such financial evidence, an individual entrepreneur can use a professional deduction in the amount of 20% of the entire amount of income received from activities.

5. Investment. Tax deductions for individual entrepreneurs investing in long-term projects. To receive, the following conditions must be met:

• profit from securities;
• opening and depositing onan individual investment account of funds, as well as receiving income from funds placed on this account.

Refund when buying an online checkout

A separate point is a relatively new type of benefit that Russian entrepreneurs can use from 2018-01-01. Unlike the types presented above, such a tax deduction is available for individual entrepreneurs using UTII, STS, including patents.

The maximum limit for reducing the taxable base is 18,000 rubles. (per checkout). In this case, the following requirements must be met. Checkout:

• should be included in the official register of the Federal Tax Service;
• should be registered.

Required documents

The set of documents for obtaining a standard tax deduction for individual entrepreneurs may vary depending on which category of citizens the businessman belongs to, as well as what type of benefit he plans to receive.

So, in order to return for the study of children to the competent authorities, you will need to provide:

• birth certificate, adoption of a child;
• document on state registration of marriage;
• certificate from an educational institution stating that the person is a full-time student;
• agreement with a public educational institution;
• financial documents confirming payment;
• Declaration 3-personal income tax.

In order to use the property deduction, an individual entrepreneur must providethe following package of documents:

• TIN;
• passport;
• declaration 3-personal income tax;
• an extract from the Unified State. register of individual entrepreneurs;
• 2-personal income tax certificate;
• certificate of taxpayer registration;
• contract confirming the transfer of ownership of the property;
• document confirming the expenses incurred.

To receive a professional tax deduction for an individual entrepreneur, a completed 3-NDFL form is required, as well as a report confirming the expenses incurred.

Processing an investment return:

• declaration in form 3-personal income tax;
• 2-NDFL;
• document confirming the opening of an investment account and the amount of funds deposited into it.

How can an individual entrepreneur get a tax deduction?

In accordance with the Tax Code of the Russian Federation, the return period is one month from the date of receipt by the competent authority of the application. But as for the timing of the return of income tax, they are not provided for in the code. In practice, the refund period goes beyond one month.

After the tax authority has received a complete package of documents from the applicant, the audit begins. Three months are allotted for it, in accordance with the law. During this period, the inspection makes a decision on the possibility or impossibility of a tax deduction for individual entrepreneurs.

After a positive decision is made, the funds are transferred to the account, the details of which are indicated in the application.

Where to go?

To apply for a personal income tax deduction, an entrepreneur must contact the tax office at the place of registration. There, an application for a deduction is filled out and all the necessary package of documents is provided.

In addition, at the moment it is possible to apply through the State Services and multifunctional centers.

Deadline for applying for a personal income tax refund

You don't have to wait until your tax return is due to file, as you can do so at any time. But most importantly, no later than three years from the date of payment of the tax that the taxpayer intends to return.

Conclusion

Thus, if an individual entrepreneur does not use the simplified tax system, UTII or a patent, then he has a real opportunity to get a fairly large number of tax preferences. This is a kind of compensation from the state to business for the fact that the taxpayer pays several types of taxes at once. The Tax Code of the Russian Federation provides real opportunities to reduce the tax burden, but not everyone takes this chance due to the low level of financial literacy.

A tax deduction for individual entrepreneurs on the simplified tax system, UTII or when using a patent is also possible, only in limited cases, or if a person has other income from which he pays 13%.