Taxation of entrepreneurial activity: features, modes, forms

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

Everyone who plans to open their own business must solve many significant issues. These include choosing the direction of work, drawing up a business plan, finding funds to invest in a business, as well as choosing a taxation system. Every business owner must pay taxes to the budget. Taxation of entrepreneurial activity allows the state to receive a significant amount of funds. The types of taxes paid by companies and entrepreneurs are numerous, so it is important to understand all taxation systems in advance in order to choose the most suitable regime.

Types of systems

First of all, you should figure out what tax regimes are available in the Russian Federation. They are presented in several forms, each with its own nuances and features.

The business taxation systems in the Russian Federation are presented in the following forms:

• BASIC. Such a system is standardly assigned to each company orentrepreneur after registration. It is considered the most complex and specific. It requires you to pay a large number of taxes, which include VAT, income tax and property tax. Additional water tax or mining tax may apply. Companies and individual entrepreneurs pay a transport fee. To work under this regime, you need to hire an accountant who will be responsible for the calculation of fees and the preparation of declarations and reports.
• USN. This simplified system is considered the most common among many Russian entrepreneurs. The object of taxation in entrepreneurial activity is income or profit from work. Therefore, this mode is presented in two versions. This system has many advantages, as it is easy to calculate, and you only need to annually submit an easy-to-fill declaration to the Federal Tax Service. Entrepreneurs often do their own accounting at the beginning of their work, which allows them to save money on the accountant's wages.
• UTII. Imputed income can only be used for a limited number of lines of work. Features of the taxation of entrepreneurial activity under this regime are that the amount of the fee is determined depending on various physical indicators. These include the size of the trading floor, the number of seats on the bus, or other parameters. In addition, the underlying income is taken into account. It is determined for each type of activity separately, and can also differ significantly in different regions. Take advantage of this tax regimeentrepreneurial activity is possible only in some cities of the country.
• ESKhN. This regime can be applied exclusively by companies and entrepreneurs that operate in the field of agriculture. It is considered easy to calculate. Also, you do not need to prepare many different reports. The rate is low, so it is really profitable to use the tax. But it is used by a small number of highly specialized organizations.
• PSN. Patents are considered unusual taxation regimes. They are used only by entrepreneurs working in standard and simple fields of activity. Such taxation of individuals engaged in entrepreneurial activities is considered simple and beneficial. A patent is purchased for a period of one month to a year. During this time, entrepreneurs are not required to visit the Federal Tax Service or submit any documents and reports to this institution. Therefore, such a simplified mode is often chosen by the SP. The disadvantage is that it is impossible to reduce the cost of the patent for the transferred contributions to the Pension Fund or other funds.

Thus, the taxation of individual entrepreneurial activities or companies can be made on the basis of different systems and forms. The choice of a specific mode depends on the direction of work, as well as on which target audience the business is oriented towards. If you need to regularly cooperate with other companies that pay VAT, then you will have to choose only BASIC.

Characteristics BASIC

Standard is the general system of taxation. It is assigned to each company or entrepreneur immediately after registration. Therefore, if there is a need to work in a different mode, then it is required to submit a corresponding notification to the Federal Tax Service within a month after registration.

Taxation of entrepreneurial activities under OSNO is considered quite complicated. This is due to the fact that when using this regime, an entrepreneur or company has to pay a really large number of various taxes and fees. Exemption from the payment of various fees can only be obtained if you choose a preferential line of work.

BASIC for IP

Taxation of individual entrepreneurial activities under the OSNO implies the need to pay various types of taxes to individual entrepreneurs:

• VAT, and in some situations the transfer of this fee is considered necessary for the entrepreneur, for example, if he works with a large number of companies that return VAT;
• excise taxes paid on the production or sale of alcohol or tobacco products, motor vehicles or combustible materials;
• Personal income tax, calculated depending on the income received by the entrepreneur, which is recorded in the financial statements;
• contributions for yourself and all officially employed employees in the PF, FSS and MHIF;
• mineral extraction tax, if in the process of activity the entrepreneur uses different subsoil to obtain certain materials;
• watera fee is charged if it becomes necessary to use a large amount of water resources for activities;
• customs duties, if it is planned to transport goods across the border of the Russian Federation;
• fee for the use of objects of the animal world;
• gambling tax, if the work of an entrepreneur is related to this field of activity;
• transport tax paid by individual entrepreneurs in the same way as by private individuals, therefore it is the employees of the Federal Tax Service who are responsible for calculating this fee, after which the entrepreneur receives only a receipt;
• land tax is calculated if the entrepreneur owns certain land plots;
• property tax is calculated and paid in the same way as all other individuals with different values officially registered on them.

Most of the above fees are calculated and remitted only if there is a relevant object of taxation, such as a car, land, non-residential or residential premises, or other items. Usually, when using the OSNO business taxation system, entrepreneurs pay VAT, personal income tax and property tax.

Companies operating on OSNO pay the same taxes, but instead of personal income tax, they calculate income tax. To determine it, the company's accountant must correctly maintain various specific and complex reporting, presented by the balance sheet and income statement.

Features of VAT calculation and payment

The rate for this tax is 18%. It is calculated from the value added of goods. Certain items that are food or items intended for children are subject to a reduced rate of 10%.

For goods sent for export, a zero rate is set at all.

How is personal income tax calculated?

It is charged on the OSNO only with individual entrepreneurs. When choosing such a taxation system used in entrepreneurial activities, it will not be possible to refuse to pay personal income tax.

To calculate this fee, you need to calculate 13% of the income received. Under certain conditions, the interest rate can increase up to 35%, for example, if an entrepreneur wins any prize, the value of which exceeds 4 thousand rubles.

BASIC for companies

The general system of business taxation can be applied not only by individual entrepreneurs, but also by different companies. It is considered the most common among LLCs or other companies. This is due to the fact that VAT is applied, which can be returned from the tax office.

If a company uses this regime, then it has to calculate and transfer a large number of different contributions, which include:

• Income tax. It requires monthly advance payments. To do this, funds are transferred until the 28th day of the next month. Additionally, quarterlyadvance payments made before the 28th day of the month following the end of the quarter. At the end of the year, tax is paid until March 28 of the next year.
• VAT. This type of tax is mandatory for the general system of business taxation. It is levied on both entrepreneurs and company owners. It requires payment of contributions by the 20th day of the month following the end of the reporting period.
• Insurance premiums. They are also paid by firms and entrepreneurs. Funds are transferred to the FSS, TFOMS and FFOMS monthly until the 15th day of the next month. At the end of the year, the final payment is calculated, which is paid before April 15 of the next year.
• Excises. They must be calculated and transferred if the company's work is related to the import of goods into the country. They are paid in equal installments by the 25th of the next month.
• NDFL. Paid for all employees officially employed by the company. Its size depends on the actual income of each employee. Taxation of income from entrepreneurial activity involves the collection of income tax from companies, so the head of the company must appoint himself a certain position and set a salary from which additional personal income tax will be charged.

Thus, if companies choose OSNO to work, they should initially hire an experienced accountant, as only he will be able to figure out which taxes and when to transfer. We should not forget about reporting, since each additionalmonth, quarter and year to transfer different types of documentation to the Federal Tax Service. The reports must be filled out correctly, so the taxation of business activities in the Russian Federation is considered a rather complicated process. But often the choice falls only on the OSNO, as companies need to work with other organizations that apply VAT during their activities.

Characteristics of the USN

The simplified business taxation system can be used by both entrepreneurs and different companies. It is considered quite easy to use, so often novice entrepreneurs often cope with the calculations and filling out the declaration on their own.

This tax regime is special, and entrepreneurs and firms themselves decide on the need to use it. To switch to this business taxation regime, you need to take into account some conditions:

• the number of employees officially employed in an organization or at an individual entrepreneur cannot exceed 100 people;
• for the 9 months preceding the application for the transition to the simplified tax system, it is not allowed that income from work exceeds 112.5 million rubles, which is indicated in Art. 248 NK;
• the value of assets owned by the company should not exceed 150 million rubles.

Only under such conditions is it possible to apply such a regime. The use of a simplified system of business taxation allowsbusinessmen to replace many fees with a single tax and one declaration, handed over once a year. No need to calculate and pay VAT, personal income tax or other types of taxes.

The exception is the property tax, which is also calculated and paid by entrepreneurs or companies if they own any assets that are valued based on the cadastral value.

When choosing the simplified tax system, each entrepreneur can decide independently what tax rate will be charged:

• 6% is charged on all income received by a company or individual entrepreneur during the year;
• 15% is calculated exclusively from net profit, for which it will first have to be determined by subtracting all officially confirmed expenses of the enterprise from income.

At the regional level, the authorities of various cities have the opportunity to slightly reduce the above rates. Therefore, often such a system of taxation of business entities is really beneficial. But it can only be used by entrepreneurs who meet certain requirements.

Individual entrepreneurs and firms that have chosen the simplified tax system must take into account some requirements:

• payments are made on the selected mode quarterly, and at the end of the year, final settlement is required;
• you must follow the basic requirements for the process of conducting cash transactions;
• statistical reportingmust be provided annually, and it is not allowed that the number of employees in the company for one year of work exceeds 100 people;
• required for all employed workers and the business owner himself, insurance premiums must be transferred;
• under such conditions, the employer acts as a tax agent for all employees, therefore it is he who is obliged to calculate and transfer personal income tax from the salary of hired specialists.

You can switch to this mode immediately after registering a business or from the beginning of the new year.

Pros and cons of the USN

Quite often a simplified system of taxation of business entities is chosen. It is considered attractive both for individual entrepreneurs and for owners of fairly large companies. The positive parameters of using the simplified tax system include:

• firms have to pay only one tax, which significantly reduces the tax burden on entrepreneurs;
• only one declaration is provided to the Federal Tax Service once a year, therefore, accounting is considered simplified, which allows the entrepreneur to independently draw up all the documentation;
• no need for accounting;
• The amount of tax depends entirely on the profit received.

But using the easy mode has some significant downsides. These include:

• the right to work under this system can be lost at any time, so you need to switchon BASIC;
• companies often have to lose important counterparties and even customers who need VAT refunds;
• if a rate of 15% of profits is chosen, then you will have to spend a lot of time collecting documentation that officially confirms the costs of the business, and some costs will not be able to be used in the process of calculating the tax base, which will lead to an increased tax rate;
• A company cannot open different divisions or work on certain types of activities.

Therefore, before choosing this mode, you should carefully evaluate all its characteristics.

Features of UTII

Each individual entrepreneur, when choosing a taxation system in the field of entrepreneurial activity, can work on UTII if he chooses an activity that fits this regime. It is allowed to work on this system only in some regions of the country, so you first need to make sure that this mode is allowed in a particular city.

When using this form of taxation of personal income from entrepreneurial activity, special physical indicators are taken into account, as well as the basic profitability determined for each area separately by the authorities. Basic parameters for using this mode:

• the amount of the fee does not change over time, so the payment does not depend on the income received by the entrepreneur;
• only entrepreneurs can use this regime, so companies do notwill be able to work on this system;
• it is not required to calculate and pay other types of taxes represented by personal income tax, VAT or other fees, since UTII completely replaces all other transfers;
• tax is paid quarterly, and every three months it is required to draw up and submit the corresponding declaration to the Federal Tax Service;
• accounting is considered simplified, often entrepreneurs themselves are involved in this process, so there is no need to hire professional accountants;
• required to pay insurance premiums for the entrepreneur himself and his officially employed employees.

You can work under this regime only in strictly defined areas of business. The types of taxation are numerous, but for many entrepreneurs, UTII is often considered the most optimal choice.

Pros and cons of UTII

Choosing this mode has some advantages. These include:

• simplicity of accounting, which reduces the burden on the accountant, and the entrepreneur himself can deal with this process;
• reduces the tax burden, as you have to pay only one tax instead of numerous fees;
• payment does not depend on income, so for some successful businessmen such transfers are really low.

The disadvantages of using this form of business taxation include the fact that it is allowed to use it only when working in specific areas. Alsoquite often, entrepreneurs are faced with the fact that large counterparties paying VAT refuse to cooperate, since they do not have the opportunity to return some of the previously paid fee.

The fee must be transferred quarterly by the 25th day of the month following the end of the quarter. Until the 20th day of this month, it is required to additionally submit a correctly completed declaration to the FTS department. It contains information about the entrepreneur himself, the chosen direction of work and the correct calculation of the amount of payment. Lack of payment or declaration is a serious tax offense for which individual entrepreneurs are brought to administrative responsibility, therefore they pay significant fines.

Features of the use of PSN

The patent system is considered a rather specific choice. It can only be used by private entrepreneurs. Suitable only for a limited number of areas of work. It conducts simplified business activities. The type of taxation under the PSN is represented by the purchase of a patent for a period of one month to a year. During this period, there is no need to pay any fees or submit documentation to the Federal Tax Service.

This option is suitable for various types of work represented by hairdressing or household services. Due to simplified accounting, it is not required to use the services of an accountant. The features of the use of PSN include:

• transition to the regime is voluntary, so hethe entrepreneur decides to use the SPE;
• you can issue a document for a period of 1 to 12 months;
• not required to pay additional taxes represented by personal income tax, VAT or other fees;
• calculating the cost of a patent, a rate of 6% of the tax base represented by possible income from activities is taken into account;
• a patent can be issued when choosing 47 areas of work;
• an entrepreneur should not employ more than 15 people officially;
• per year, income from work cannot exceed 60 million rubles.

The advantages of this mode include the absence of the need to submit any reports to the Federal Tax Service. You can not use KKM, and the cost of the patent is considered acceptable. The disadvantage is that it is impossible to reduce the cost of the document at the expense of insurance premiums. You can buy it for a maximum of one year, and only individual entrepreneurs can use such a system.

Who uses ESHN?

The single agricultural tax is intended exclusively for producers or sellers of agricultural products. Only individual entrepreneurs, KFK or companies can become payers of this fee. To do this, you need to write an application to the Federal Tax Service about the transition to this regime.

When using ESHN, it is not required to calculate and transfer other types of taxes. When determining the tax base, it is required to subtract expenses from income, after which the resulting value is multiplied by 6%.

ESKhN is consideredfavorable regime, but its application requires that the taxpayer be a manufacturer or seller of agricultural products, and the share of its sale in the total income should not be less than 70%. To switch to this mode, you must send a notification within a month after registration or before December 31 of the next year.

It is allowed to combine the UAT with other taxation regimes. This regime is considered beneficial for direct producers of agricultural products, but the transition to it is voluntary, therefore it is allowed to work in this field of activity using other systems.

Conclusion

Thus, taxes and taxation of entrepreneurial activity is a significant moment for every start-up or long-term entrepreneur. It is required to correctly choose the regime on the basis of which taxes will be paid to the budget. To do this, the chosen direction of work, the ability to apply simplified systems, as well as the desires of the entrepreneur himself are taken into account.

In most cases, you need to work under the general regime in order to be able to cooperate with other companies that pay VAT. This mode is considered the most difficult, so you need to hire an accountant. In other situations, the ideal solution would be simplified regimes, which do not require you to pay a lot of fees and prepare a large number of different reports.