Imputed tax - what is it?

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

When choosing a taxation regime, entrepreneurs often pay attention to an imputed tax, called UTII for short. This system is limited in its application, as in many cities it has been abolished by local authorities. At the same time, it has many undeniable advantages. Before drawing up an application for the transition to this mode, you should have a good understanding of the nuances of its use, the rules for calculating tax and drawing up a declaration.

The concept of UTII

UTII is considered a popular simplified system for calculating taxes by entrepreneurs. The single imputed tax has some features:

• when calculating the tax, actual cash receipts are not taken into account, therefore only the basic yield set by the state is used;
• you can use the mode in a limited number of cities;
• transition to it can be carried out by individual entrepreneurs or different organizations;
• application is allowed only for entrepreneurs and firms operating in eligible fields of activity;
• when calculating the fee, physical indicators are additionally taken into account,represented by the size of the trading floor, the number of officially employed workers or other parameters.

The indisputable advantage of this regime is that it is required to pay only one tax, which replaces other types of fees. It is calculated and transferred quarterly. Every quarter, you additionally have to form and submit a declaration.

Will the regime be cancelled?

Until 2013, this system was mandatory for use if the chosen direction of work met the requirements of the regime. But now the transition to this system is voluntary, so the entrepreneurs themselves evaluate the rationality of such a decision.

Regularly there are rumors that the imputed tax will be abolished throughout Russia, but this regime is constantly being extended. In 2016, the Order was issued by the President of the Russian Federation to extend its validity until 2021.

Main parameters

If this system is chosen to calculate the tax, then you should figure out what characteristics it has. The main parameters are as follows:

• only a single tax on imputed income is paid, so it is not required to calculate other types of fees;
• payments due quarterly;
• it is allowed to reduce the tax base for insurance premiums;
• entrepreneurs have the right to make a deduction for the costs that must be incurred when buying and installing an online cash register;
• all IP andfirms applying this regime received an exemption until July 1, 2019 from the use of online cash registers, so this decision is voluntary;
• for some types of activities in 2018, the rate is set at 0%.

For many entrepreneurs, the choice of such a regime is considered effective and appropriate. Due to the ease of reporting, the individual entrepreneur himself can draw up a declaration, so there is no need to employ a professional accountant. Due to the ease of transition, you can use the taxation system for imputed tax at any time.

Which industries can apply the system?

UTII cannot always be used, so entrepreneurs should understand well for which areas of activity an imputed tax is suitable. These areas of work include:

• provision of household services;
• retail trade in goods, and the process must be carried out in stores or pavilions with an area of \u200b\u200bless than 150 square meters. m.;
• veterinary services;
• rental of car parks;
• retail trade in stationary trading facilities that do not have trading floors;
• transportation of goods or passengers, but the company's fleet should not have more than 20 vehicles used in the process of the enterprise;
• car repair, maintenance or car wash;
• catering services without a special room dedicated to customer service;
• trading withnon-stationary retail chains, which include numerous stalls, shops or vans;
• providing catering services, but the hall where visitors eat cannot exceed 150 square meters in area. m.;
• advertising on cars, inside the vehicle, as well as on special structures on the street;
• Leasing commercial space or retail space less than 150 sq. m.

The number of areas of activity for which UTII is applied may be changed by regional authorities. In some regions, the use of this mode is completely prohibited. Moscow is one of these cities, so metropolitan entrepreneurs should choose other systems for work.

Often entrepreneurs want to apply an imputed tax. Activities eligible for this regime need to be determined based on regional regulations.

Requirements for taxpayers

If the chosen direction is suitable for UTII, then it is important to assess the requirements for the business being opened. Tax on imputed income may be applied under the following conditions:

• officially, the company should not employ more than 100 people;
• if other enterprises invest in the organization, then their share should not exceed 25%, but this restriction does not apply to companies formed exclusively from the contributions of organizations of disabled people, but in such enterprises the number of disabled people must exceed 50% of all employees;
• organization should not be classified aslargest taxpayers;
• it is not allowed to use the regime if the activity is carried out on the basis of a simple partnership agreement or trust management.

All these requirements must be taken into account before the direct application for the transition to the regime.

Pros of application

This taxation system is indeed considered to be in demand among many entrepreneurs. This is due to the presence of numerous advantages, which include:

• low tax burden on the entrepreneur, as the tax rate is usually low;
• tax is calculated without taking into account the real profitability of the business, so only the basic profitability is used, which in most cases is much less than the actual profit;
• optimally use the mode with significant revenues;
• insurance contributions for the entrepreneur himself and his employees can be used to reduce the tax base, which is impossible to do on the PTS, and often the tax is completely covered by insurance payments, so it is not required to pay it to the budget;
• it is possible to deduct from the tax base the costs of purchasing and installing an online cash register (only for individual entrepreneurs), which is mandatory for all regimes, although a deferment is granted for UTII until July 2019;
• no accounting is required, and there is no need to draw up and submit numerous reports to the Federal Tax Service, so usually the entrepreneur himself can easily cope with simpleUTII declarations submitted to the Federal Tax Service quarterly;
• when switching to this mode, any income restrictions are not taken into account;
• you can switch to UTII even within a year, for which a corresponding notification is submitted to the Federal Tax Service within 5 days after the start of work;
• It is possible to combine UTII with all other taxation systems;
• it is allowed not to use the CCP during operation, but the exception is retail trade and the provision of catering services;
• in some regions, first-time entrepreneurs are offered a rate of 0% for a certain amount of time

Imputed tax becomes a priority over other options due to its numerous advantages.

Disadvantages of UTII

Some disadvantages of the system should also be taken into account. These include the fact that if a company specializing in retail trade has a large trading floor, then the amount of the fee can be significant, therefore, under such conditions, it is advisable to use the simplified tax system or even OSNO. Also, this mode is not selected by companies that need to calculate VAT, otherwise they will not be able to cooperate with many significant counterparties.

For beginners, the choice of this system is not always appropriate. This is due to the fact that a specific amount of the fee is paid in the same amount, regardless of the profitability of the business. Therefore, if there are losses at the first stages of work, you will still have to pay tax. If we apply the USN, then it is prescribed for suchconditions only a small minimum fee.

What taxes do not have to pay?

When choosing UTII, taxpayers are exempted from the need to calculate and pay many fees. When using an imputed tax, organizations do not have to pay VAT, income tax and property tax.

Entrepreneurs do not pay VAT and personal income tax, as well as property tax.

An exception is the situation when the balance sheet contains property included in a special list, in which tax is calculated for all objects based on their cadastral price. In this case, you will have to calculate and pay property tax.

How to switch to mode?

Each entrepreneur should think about what system he will use during his work. Often, a system of taxation of a single tax on imputed income is chosen, and under such conditions, the transition is provided for:

• during the registration of an individual entrepreneur or company, for which a notification is submitted to employees of the Federal Tax Service;
• within a year you can switch to UTII from any other regime, and the notification must be sent within 5 days after the start of work on this system.

Organizations submit to the Federal Tax Service a document in the UTII-1 form, and entrepreneurs use the UTII-2 form. Documentation is submitted to the department of the Federal Tax Service at the place of work, and if the direction of activity related to peddling or delivery trade, transportation or advertising is chosen, then the place of registration of the entrepreneur or company is taken into account.

How is tax calculated?

Businessmen should be well versed in the rules for calculating the fee. If an imputed type of tax is selected, then the following formula is used for calculation:

UTII size=basic yieldphysical indicatordeflator factoradjustment factor15%3

15% is the tax rate, and it can be reduced by regional authorities. 3 is the number of months in the quarter, as the tax is required to be paid quarterly.

A correctly calculated tax can be reduced on insurance premiums paid for yourself and employees, but in the second case, the reduction is only allowed by 50%.

Conclusion

Thus, a sane tax for individual entrepreneurs and companies is considered an excellent choice. It has many advantages, although there are some disadvantages of the system. The transition is considered simplified, but you can use the mode only when choosing limited areas of work.

In some cities, this system is completely banned. Due to the ease of accounting and tax calculation, entrepreneurs do not need to officially hire a professional accountant.