What is more profitable - "imputation" or "simplification" for IP? What is the difference? Types of taxation systems

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

IP is a common type of activity. It allows all citizens to start their own business. Only sooner or later every entrepreneur thinks about what is more profitable - "imputation" or "simplification". For individual entrepreneurs, the type of taxation plays an important role. It is advisable to decide on it before setting up a business. The right way to pay taxes makes life much easier. So what is better to choose - "imputation" or "simplification"? How are these systems different? All this will be discussed later. In fact, everything is not as difficult as it seems. Especially if the citizen already knows exactly what business to start.

Taxation systems in Russia

First, we need to understand what types of taxation systems are in place in Russia. How should entrepreneurs pay taxes for their activities? There are a variety of scenarios.

Today in Russia you can be an individual entrepreneur with:

• regular taxation;
• special treatment;
• patent.

In practice, the latter option is more and more common. In addition to it, preference is often given to special taxation regimes. These include:

• USN ("simplified");
• ESKhN;
• UTII ("imputation").

Typically, entrepreneurs choose between the first and last option. What is more profitable - "imputation" or "simplification" for individual entrepreneurs? What are the pros and cons of these tax payment systems?

Single tax on imputed income

For this, it is important to understand what is provided for by one or another option. For example, "imputation". What is it?

UTII is a tax payment system that provides for the transfer of funds in established amounts depending on the type of activity. It does not depend on real income and expenses. Each region sets a different size of UTII.

Now it's clear what "imputation" is. We can say that this is a tax payment system that provides for the payment of a certain (fixed) amount to the state treasury.

Simplified tax system

In practice, quite often there are entrepreneurs who choose the simplified tax system. What's this? How is this tax regime different from the previous one? What features are recommended to pay attention to?

It's actually easier than it looks. "Simplification" - what is it? That's what they call USN. It offers entrepreneurs sever altax payment options:

1. "Income". A citizen must transfer once a year 6% of the profit. Only income is taken into account, expenses are not considered.
2. "Income-Expenses". The entrepreneur transfers 15% of the profit received during the year. The tax base is the figure obtained after taking into account all expenses incurred.

Important: each individual entrepreneur independently chooses which system in the simplified tax system to use. This decision depends entirely on the activities of the entrepreneur.

Common between "simplified" and "imputed"

What is more profitable - "imputation" or "simplification"? For the IP, this issue is extremely important. After all, the main profit received after taxes will depend directly on the chosen taxation system.

USN and UTII have common features. These include the following nuances:

• you can switch to both systems at any time at the request of a citizen;
• there are some restrictions for the use of the simplified tax system or UTII;
• there are no additional payments such as VAT or personal income tax - instead of them there is a single payment;
• when applying "simplification" and "imputation", you will have to transfer money to extra-budgetary funds;
• both systems allow you to combine several modes;
• payment and transfer of the single tax occurs quarterly.

From here it follows that "simplified" and "imputed" are a bit similar to each other. But the difference among these systemsthere is also taxation. A future entrepreneur needs to know about it.

Difference

"Vmenenka" and "simplified" - what's the difference? Some nuances are clear from the definition of terms. But not everyone pays attention to them. You have to specify how exactly the simplified tax system differs from UTII.

Application:

1. STS applies to any type of activity of the Russian Federation.
2. UTII is available for specific types of work in a particular locality.

Choice of tax base:

1. STS provides for several options for paying taxes - "income" (6%) and "income-expenses" (15%). The amount of the payment as a whole depends on the profit of the IP.
2. UTII offers to pay taxes in fixed amounts. Only the choice of activity depends on the entrepreneur.

Impact on the tax base:

1. "Simplified" allows you to change the amount of certain payments of the entrepreneur in the reporting period. For example, total absence of taxes is allowed.
2. "Vmenenka" forces citizens to pay the same taxes all the time. The entrepreneur cannot influence the amount of deductions in any way.

Combination:

1. The simplified system has limitations when combining several tax payment regimes.
2. UTII is combined with all types of taxation without restrictions and problems.

Perhaps, these are all the main differences between the mentioned systems. What other features should I pay attention toentrepreneur before choosing a tax option?

Reporting

What is more profitable - "imputation" or "simplification"? For individual entrepreneurs, the choice of taxation system plays an important role. Therefore, you have to decide which option to choose.

For some, accountability is important. With a simplified system, the entrepreneur submits the relevant document once a year. And UTII provides for quarterly reporting. Accordingly, taxes are paid either once a year ("simplified"), or every quarter ("imputation"). IP makes payments every 3 months.

Which is better

So what is the best place to stop? In fact, there are no precise guidelines regarding the choice of taxation system in a particular case. Each entrepreneur conducts his own activity, and for it you have to make individual calculations. Only after them will it be possible to say what to choose - USN or UTII.

Taxation of IP activities has many features. As a rule, if you want to "see what happens", there are no significant expenses and a person plans to work "for himself", preference is given to the simplified tax system with the "income" payment calculation system. This is the most suitable way of doing business for those who do not want to deal with additional paperwork.

UTII is considered a universal option, but requires certain expenses and reporting. Therefore, this mode is applied in cases wherewhen an entrepreneur is 100% sure of the profitability of the business.

General recommendations

Now it is clear what types of taxation systems are in place for entrepreneurs in Russia. It is also clear how the USN differs from UTII. It is up to each individual entrepreneur to decide which tax payment option to choose.

There are a number of general recommendations that can make the task easier. These include the following tips:

1. It is necessary to calculate the approximate payments of IP in the form of taxes, as well as the profitability of the business. It is important to take into account the regularity of income.
2. Compare tax amounts under various regimes. At the same time, it will be necessary to take into account the possibility of maximum reduction of payments under the law.
3. Analyze what changes may occur when doing business, compare the risks of going beyond the use of the simplified tax system and UTII.
4. Study changes in the legislation of the Russian Federation regarding special regimes.

All this will help to find out exactly what is more profitable - "imputation" or "simplification" for IP. In practice, as already mentioned, the simplified tax system is often chosen. All this is due to the lack of regular reports to the tax authorities. Often this factor (taking into account the calculations of the expected profit) plays a decisive role. Especially if the entrepreneur works without employees, on his own. IP payments to off-budget funds remain unchanged under all taxation regimes. They are listed in fixed amounts, taking into account the minimum wage. Therefore, with UTII and STS, the same amount of money will have to be transferred to the FIU.

It is generally accepted that UTII is a less flexible taxation system. With the simplified tax system, an entrepreneur will be able to optimize the tax burden. Accordingly, everyone decides for himself what is more suitable for him - "imputation" or "simplification".