Single agricultural tax - calculation features, requirements and payment

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

ESKhN (single agricultural tax) is a kind of simplified regime that allows entrepreneurs working in the field of agriculture to pay a low tax. When using this system, accounting is further greatly simplified, so the individual entrepreneurs themselves can deal with this process without the need to involve experienced accountants. You should understand who can apply this fee, what requirements are taken into account for this, as well as how to switch to the regime and how the tax amount is calculated.

Collection Features

The single agricultural tax is intended for entrepreneurs and enterprises that specialize in the production of agricultural products. Each individual entrepreneur working in this direction independently decides whether they will apply this simplified tax regime or the standard system - BASIC.

The ESHN can be used only by entrepreneurs working in this direction. This takes into account the requirements for individual entrepreneurs and firms, the rules for calculating and transferring the fee.

Pros of using ESHN

There are many benefits of applying an agricultural tax, which include:

• on the basis of Art. 346 there is no need for payers of this fee to pay personal income tax or property tax, which must be transferred by each owner of any property;
• no fee is paid on the profits received by the company or on the property that it uses in the process of work;
• not transferred to the VAT budget, but the export tax is an exception;
• it is possible to use simplified accounting, and it is really so simple and understandable that entrepreneurs themselves without specialized accounting education can implement this process;
• the transition to the UAT is voluntary, so entrepreneurs themselves decide whether it is advisable to use this regime or not.

This regime is applied by companies or individual entrepreneurs who specialize in the production of agricultural products, animal husbandry, crop production or work in the field of forestry. It is allowed to conduct additional activities in other areas, but the income from agriculture must be at least 70% of all cash receipts.

Who is the payer?

Only in some areas of work can the single agricultural tax be applied. Taxpayers are represented by companies or entrepreneurs whose income from agricultural work exceeds 70% of all cash receipts. This requirement is set out in Art. 346 NK. Payers of the fee can be engaged in different jobs:

• production of agricultural products, for which firms specialize in crop or livestock production;
• providing a service to companies that produce these products, and they can provide different services, such as planting crops, caring for different objects, harvesting or doing other farm work;
• farming or catching fish;
• work with other aquatic biological resources.

Unified agricultural tax is not allowed to be paid by companies that specialize in processing or supplying agricultural products.

Each company that uses this regime may lose its right to apply this system even in the middle of the year if it does not have signs of compliance with the requirements of the law, which are listed in Art. 346 NK.

What taxes are not paid?

All companies and individual entrepreneurs applying this regime are exempt from paying many other fees. These include income tax and property tax, as well as VAT and personal income tax.

The exemption is for both firms and entrepreneurs. But at the same time, it is required to pay the tax itself in a timely manner, as well as to fit the requirements of the system, otherwisethe taxpayer will be transferred to the OSNO, which requires the transfer of many fees.

How to switch to this mode?

There are many firms that, according to their parameters, can apply a single agricultural tax. ESHN is a simplified regime, so switching to it is also considered a simple process. This takes into account some rules:

• the transition is voluntary, so taxpayers can make their own decision on the advisability of working with this regime;
• the transition is implemented until December 31 of the year, so before that time, a notice of the transition must be submitted to the Federal Tax Service;
• the document indicates what the company's income from work in the field of agriculture;
• if only an individual entrepreneur or a company is opened, then the inspection is notified of the application of the ESHN within 30 days after the issuance of the registration certificate;
• if an individual entrepreneur has switched to this regime, then before the end of the year he cannot switch to another system, and the exception is the automatic transition to the OSNO if the activity ceases to meet the requirements of the simplified regime.

If the employees of the Federal Tax Service are not notified of the transition to this regime within the prescribed time frame, then the application of the single agricultural tax will be considered illegal, so different pen alties for taxpayers will be used. Additionally, taxes are recalculated based on the BASIC.

If a company or individual entrepreneur understands that their work does not meet the requirements of the single agricultural tax, then they must within 15 daysnotify the Federal Tax Service of this so that the company is transferred to the general mode.

Object of taxation

A tax is levied on income, which must be reduced in advance for all expenses of the enterprise. In Art. 346.5 of the Tax Code prescribes the correct procedure, on the basis of which it is possible to determine all income and expenses that are taken into account when calculating the tax base. This base is expressed in the form of money of all incomes, which are reduced by costs. The main settlement rules are:

• the date of receipt of income is represented by the day when funds from buyers are received into the account or cash desk of the organization;
• income can be represented not only by money, but also by various property, as well as various services or works, rights or debts;
• expenses can only be recognized after the actual expenditure of funds;
• if there are receipts of money or spending in foreign currency, then a recalculation is made, for which the Central Bank exchange rate set on the date a particular operation was performed;
• if there are incomes represented by natural values, then they are taken into account depending on the value specified in the contract, or market prices for similar goods are applied.

Thus, the object of the unified agricultural tax is represented by profit, from which a fixed percentage is levied in the form of tax.

It is allowed to reduce the tax base using the loss that was received in previous periods. Andthis right is reserved for 10 years following the period in which the enterprise incurred a loss from work.

Accounting at the enterprise

The system of taxation of the unified agricultural tax assumes that each company or individual entrepreneur is exempt from complex accounting, but at the same time they must have a properly drawn up and regularly filled out book of income and expenses.

Based on the information from this document, the tax is calculated. It must be submitted in the correct form, approved by Order of the Ministry of Finance No. 169n.

From 2017, UAT payers can include in their expenses the expenditure of funds that are necessary to assess the qualifications of employees.

Bid

The single agricultural tax rate for all payers of this fee is 6%. The standard formula is used for calculation: UAT=tax base6%.

The tax base is represented by the difference between income and expenses that arise in the course of work. All must be expressed in monetary terms.

The tax rate is fixed and unchanged, so it is not affected by any factors and features of the enterprise. Payers can reduce the tax base if in past periods expenses exceed income. But it is impossible to reduce more than 30%.

When is the fee due?

Payment of the single agricultural tax mustcarried out annually, since the year is the tax period.

Reporting periods are half-years, so payments are made twice a year. Funds must be transferred by the 25th day of the month following the reporting period. Therefore, the first payment must be made from 1 to 25 July. Full year tax is calculated at the end of the year and the due date for payment is April 2.

Reporting under ESHN

The tax return for the unified agricultural tax is drawn up and submitted at the end of the tax period represented by the year. Therefore, this report is generated once a year. Features of this process include the following:

• a document is transferred at the place of residence of the individual entrepreneur or the place of work of the enterprise;
• Declaration is due by March 31 next year;
• For the formation of this document, the approved form is used, developed by order of the Federal Tax Service No. ММВ-7-3/384@;
• it is allowed to transfer it in paper or electronic form;
• if the company's activity is terminated or the individual entrepreneur is closed, then it is necessary to submit a declaration for the ESHN before the 25th day of the month following the month when the notice of termination of work under this regime was sent to the Federal Tax Service.

If more than 100 people are officially employed by taxpayers in a year, then under such conditions the declaration for the single agricultural tax is submitted exclusively in electronic form. To do this, the entrepreneur needs to issue an EDS.

Filling out a document is a simple process that even yourself can easily handlea taxpayer who does not have a specific education and special knowledge. To do this, you can use the "Legal Taxpayer" program, issued by the Federal Tax Service to simplify business reporting.

Rules for combining with other modes

IPs can combine UAT with other taxation systems, for example, with PSN or UTII. Organizations can combine this mode exclusively with UTII. Cannot be combined with other systems.

Firms can only switch to the simplified tax system or OSNO, just like individual entrepreneurs.

If an enterprise uses several modes, then entrepreneurs should be aware that each system has its own types of reporting and accounting rules.

Responsibility for violations

Each taxpayer who has chosen the Unified Agricultural Tax as a taxation system must responsibly approach his obligations, represented by the need to transfer tax and submit a declaration. If these requirements are violated, then this is the basis for bringing the violator to justice. The main pen alties include the following:

• under Art. 122 of the Tax Code, if there is no tax on the Unified Agricultural Tax within the prescribed period, then the entrepreneur is forced to pay a fine, the amount of which varies from 20 to 40 percent of the amount of payment;
• under Art. 119 of the Tax Code, if reporting is not submitted to the Federal Tax Service in a timely manner, then administrative liability is also provided, represented by a fine of 5 to 30percent of the payment amount, but such a fine cannot be less than 1 thousand rubles;
• Additional pen alties are charged for each day of delay, and usually the Central Bank refinancing rate is used for calculation.

Often, the inspectorate files a lawsuit against persistent non-payers, which allows them to recover funds from them through bailiffs. If malicious intent is proved, then criminal liability may be applied to entrepreneurs, and their activities may be suspended.

Conclusion

Thus, the UAT is considered one of the simplified regimes, since enterprises on this system are exempt from paying numerous taxes, and the accounting process is considered simple, so businessmen often do it themselves. A flat rate of 6% is used to calculate the tax.

It is important to understand which entrepreneurs can really work under this regime, how the transition to it takes place, what legal requirements are taken into account when the tax is transferred and the declaration is submitted. Exact adherence to the terms of the law guarantees the absence of fines and pen alties, as well as problems with tax inspectors.