What taxes does an individual entrepreneur pay?

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

Many people want to start their own business, and at the very beginning of work, they most often choose the organizational form of a business in the form of an individual entrepreneur. This choice is due to many advantages. This includes the ability to work under simplified regimes, the ease and speed of registration, as well as the absence of the need to report where the funds received as a result of activities are directed. Newcomers to business should be well versed in what taxes should be paid by an individual entrepreneur. For this, the chosen taxation system is taken into account.

Types of tax regimes

Before starting work, each entrepreneur must decide which system for calculating taxes he will use in the process of doing business. It depends on what taxes an individual entrepreneur will pay.

In Russia, individual entrepreneurs can switch to different tax regimes if they meet their requirements. Therefore, you can choose one of the options:

• OSNO - a standard general system by which you need to calculate and payPersonal income tax, VAT and entrepreneurial property tax.
• STS - a simplified regime, on the basis of which an individual entrepreneur pays only a single fee in quarterly advance payments, and it is also required to submit one declaration per year.
• UTII allows you to pay a single tax on a quarterly basis, and its size does not depend on the available cash receipts, since the calculation uses the state-established basic yield with an interest rate, different coefficients and a physical indicator of the business.
• PSN involves the purchase of a patent for a certain period, and during its validity it is not required to come to the Federal Tax Service at all, pay taxes or submit any reports.
• ESHN applies exclusively to producers of agricultural products, and under this regime only 6% of the profits are charged.

Specific taxes are paid for each system chosen. An individual entrepreneur is additionally obliged to transfer certain funds for himself to the PF, as well as pay taxes for his officially employed employees.

Legislative regulation

Basic information about the rules for paying various taxes is contained in numerous articles of the Tax Code.

An entrepreneur can choose either one mode or several different systems. The Tax Code contains important information for every businessman:

• types of tax regimes in force in the Russian Federation;
• types of fees that an individual entrepreneur is required to transfer to the budget;
• tax calculation procedure;
• mechanism by which you can switch from one system to another;
• the procedure for the formation and submission of reports;
• responsibility for offenses.

To determine what taxes an individual entrepreneur pays in a particular regime, you should study the basic provisions of the Tax Code:

• ch. 26.2 of the Tax Code describes the procedure for using the simplified tax system, and the tax rate is set by Art. 346.2 NK;
• ch. 26.3 Tax Code contains information on the application of UTII;
• The patent system is governed by the provisions of Ch. 26.5 NK;
• ch. 21 Tax Code includes data on the rules for calculating and transferring VAT;
• NDFL is described in Ch. 23 NK;
• information about the rules for determining excises is contained in Ch. 22 NK.

Most taxes are paid by individual entrepreneurs when choosing OSNO. If simplified regimes are chosen by the entrepreneur, then usually it is not required to report on property tax. An exception will be the situation when there is real estate for which the cadastral value is determined, and at the same time, the region applies the calculation according to this indicator for different types of real estate. Under such conditions, it is required to calculate and pay property tax even when using simplified regimes.

What taxes are paid on the basic tax?

This tax regime is considered the most complex and specific. It requires the calculation and payment of all general fees. What taxes does an individual entrepreneur pay on OSNO? These include:

• NDFL. It replaces the income tax paid by companies. It is levied on the income that the businessman himself receives in the process of work. Charged from the tax base of 13%.
• VAT. It is calculated based on the existing markup. The rate can be 10% or 18% depending on the type of activity.
• Property tax. This fee will have to be paid if the BTI employees have already determined the cadastral price of real estate, and also in the region where the entrepreneur works, there should already be a law on the basis of which this tax should be calculated depending on the cadastral value of objects.
• For himself, the entrepreneur additionally makes insurance payments to the Pension Fund and the Social Insurance Fund.
• For employees, you will have to pay personal income tax and contributions to the Pension Fund and the Social Insurance Fund.

It requires not only the payment of taxes by an individual entrepreneur, but also the submission of numerous and complex reports. Therefore, if such a tax regime is chosen, then from the very beginning of work it will be necessary to use the services of a professional accountant. This mode is usually chosen by entrepreneurs planning to open a serious company in which there will be a significant turnover of funds. Additionally, the IP system is suitable for those who need to cooperate with counterparties that apply VAT. This is due to the fact that if an individual entrepreneur does not pay VAT, then he may lose many profitable partners.

Additionally paid income tax for individual entrepreneurs. In this case, an individual entrepreneur can count on a property deduction or other types of benefits and concessions from the state. itdue to the fact that he can confirm his income.

Types of taxes on the simplified tax system

STS is considered the most popular system among entrepreneurs. It is presented in two forms, so taxes by an individual entrepreneur can be paid in different amounts:

• 6% of all business cash receipts;
• 15% of the amount received after the reduction of income for expenses.

You can use this mode only if certain conditions are met:

• annual income cannot exceed 150 million rubles;
• the value of assets should also not be more than 150 million rubles;
• A company should not officially employ more than 100 people.

A feature of this regime is that the single tax replaces all other fees. At the same time, the tax paid by an individual entrepreneur is simple to calculate. To do this, 6% can be calculated from total cash receipts, and it is also allowed to first determine the difference between income and expenses, after which 15% should be paid from the amount received.

Reporting is submitted only once a year until April 30 of the following year. At the same time, it is quite simple to draw up a document, so entrepreneurs often deal with this process on their own. It is not required to use the help of professional accountants under this regime.

Changes in the simplified tax system in 2018

Regularly, numerous changes are made to the tax legislation. Therefore, the rules for calculating taxes andfees by an individual entrepreneur working under the simplified tax system have been slightly changed:

• citizens registering IP for the first time and switching to the simplified tax system can count on tax holidays lasting up to two years, during which they do not have to transfer any funds to the Federal Tax Service at all;
• the tax rate may be reduced by regional authorities to 5% or 1%, so in some regions the application of this tax regime is considered really beneficial;
• the number of taxpayers who can use this regime has expanded, but companies with different divisions are still not allowed to use this system;
• introduced from April 10, 2018 a new form of declaration on the simplified tax system, and such changes are due to the possibility of applying new tax rates, so it will be possible to indicate the rate in the document at 0%;
• when calculating taxes payable, VAT will not be taken into account, which also became possible from 2018.

Due to the above changes, indeed, there are many taxpayers who seek to use this regime. On simplified taxes, an individual entrepreneur can easily calculate and pay independently. The fee is small, so the tax burden is low.

What taxes are paid on UTII?

This tax regime is also considered simplified. It requires an individual entrepreneur to pay tax, which depends onbusiness metrics, underlying returns and various regional ratios. It replaces all other fees.

The size of the tax does not depend on how much money the entrepreneur receives during his work, therefore it does not change over time. Only individual entrepreneurs working in suitable activities, which include catering, household or veterinary services, as well as passenger or freight transportation, can apply the regime.

The tax rate is 15%. When using this mode, it is not required to issue a cash register and you do not even need to use the online cash register until 2019. You can work without opening a checking account. For the application of the regime, it is important to choose a suitable line of work, and the number of officially employed workers should not exceed 100 people.

The main changes in this mode in 2018 include:

• subjects can reduce the amount of tax of an individual entrepreneur, for which the rate is not 15%, but 7.5%;
• the size of the deflator coefficient changes regularly, so in 2018 K1 is 1,798;
• a new UTII declaration form has been established, which must be submitted quarterly.

The application of this regime is considered relevant only if there is information about the exact amount of income. If there are losses, you will still have to pay the fee in full. This is due to the fact that the result of the activity of an individual entrepreneur does not affect the amount of payment. Taxes can be high. For example, if the hall in a cafe exceeds 60 sq. m., thenphysical indicator will be significant. Therefore, it is not always beneficial to use UTII.

How are taxes calculated under ESHN?

This fee is intended for entrepreneurs involved in the production, processing and sale of agricultural products. This also includes fisheries companies.

For this type of tax for individual entrepreneurs, a rate of 6% is set. The fee must be paid twice a year, and reports are submitted at the end of each year.

The condition for the transition to this regime is that the income from activities in agriculture must be more than 70% of all income. Since 2018, it is allowed not to take into account VAT in income when calculating the fee.

What are the SIT fees?

The patent system can only be used in relation to a limited number of areas of activity. They are set at the federal level. The principle of applying such a regime is to purchase a patent for a period of one month to a year. During this time, it is not required to donate any puffiness at all or transfer funds to the budget.

The price of a patent is calculated in each region in its own way, for which the potential income from activities is taken into account. There are certain restrictions on the use of this mode. These include the fact that the company should not employ more than 15 people, as well as the maximum profit per year is set by the regional authorities. You do not need to use a cash register, but the Federal Tax Service requires entrepreneurs to competently maintain a bookaccounting for expenses and income.

Other payments

When registering an individual entrepreneur, a legal entity is not formed, an individual entrepreneur is an individual. The taxes paid by him are determined by the chosen taxation regime, but regardless of this system, it is required to pay mandatory payments for himself and employees, arranged officially. These payments include:

• In the PF, the amount of 17328.48 rubles is paid for itself. You can deposit funds in installments. If, according to reports, income per year exceeds 300 thousand rubles, then an additional 1% is paid from the difference in the PF. All funds must be paid by April 1 next year.
• 3399.05 rubles are paid annually to the FFOMS. for he alth insurance. At the same time, contributions do not increase with high profitability of the business.
• For employees, you have to pay 13% to the Federal Tax Service. Additionally, social insurance contributions in the amount of 2.9% and 0.2% are transferred for them. The PF pays 22% of the salary. The medical contribution is 5.1%.

When using simplified tax regimes, it is possible to reduce the tax base at the expense of the above contributions. If there are no employed workers, then the base can be reduced by 100% of the insurance premiums paid. If there are employees, the base is reduced by only 50% of all funds transferred.

Conclusion

The choice of a specific tax regime depends on the current line of work and other features of the activity. Based on numerous factorsit is correctly chosen what tax an individual entrepreneur will pay. If large-scale production is planned, then it is advisable to choose OSNO. For a beginner, USN or UTII is like. For producers of agricultural products, ESHN is considered an ideal option. For hairdressers or professionals in similar fields, it is advisable to choose PSN.

The number of taxes that have to be transferred to the state, the rules for their calculation and the declarations to be submitted depend on the choice of the mode. Therefore, each entrepreneur must responsibly approach the choice of this parameter. When choosing simplified modes, there is no need to formalize an accountant at the first stages of work, but if OSNO is used, then this specialist cannot be dispensed with.