Simplified taxation system for individual entrepreneurs: types of activities, application

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

The simplified taxation system for individual entrepreneurs is chosen very often, as this is a special regime aimed at reducing the fiscal burden on entrepreneurs and simplifying their accounting.

Choice of USN

The transition to the simplified taxation system is carried out by individual entrepreneurs by submitting an application to the inspection. This special mode cannot be used in the following cases:

• The staff exceeds one hundred people.
• Total cumulative operating income for the reporting period exceeded the established limit (in the previous and current year the limit is one hundred and fifty million rubles).
• Business owners did not notify the inspection of the transition to the simplified tax system.
• EAT applied in activities.
• A type of IP activity is being carried out, which is not provided for under the simplified taxation system.

If the conditions are not met, business owners must waive the special tax regime. They must do this starting from the reporting period when the conditions of the simplified tax system were not met. The entrepreneur must report the transition to the common system no later than fifteen days from the date of termination of the application of the special regime.

Reasons for canceling the application of the simplified tax system:

• 100 employees exceeded;
• income exceeded;
• opened new activities (for example, the practice of private notaries, lawyers).

Owners of enterprises that have just started their business activities are en titled to apply a special taxation regime by filling out an application for a simplified taxation system for individual entrepreneurs and notifying the tax office about it in advance. The term for providing information on the choice of tax regime from the moment of registration with the inspection is thirty calendar days.

Types of reporting

Special treatment for sole proprietors involves the submission of only a tax return.

Entrepreneurs must print and keep a paper book of income and expenses. If during the year the book was kept in electronic form, then it must be prepared, printed, stitched and numbered.

Object of taxation

The declaration is submitted by the entrepreneur, regardless of which object of taxation is chosen.

An individual entrepreneur independently determines the object of taxation: 6% of income or from 5% to 15% of the difference "income - expenses". The tax paid by the taxpayer to the budget depends on the choice made. The object of taxation can be changed an unlimited number of times in the course of entrepreneurial activity.

How to file your tax return

Reporting to the IFTS can be provided:

• by posting;
• handing over to the tax inspector;
• by sending via the Internet, if the company maintains electronic document management with inspection.

Report Form

Entrepreneurs, using the simplified taxation system for individual entrepreneurs, report their earned income and expenses to the inspectorate using a tax return. The form, adopted in the spring of 2016, is also used in 2018. Using an obsolete declaration form, the business owner violates the law and his actions are equated to failure to submit reports.

How to fill out the form

Basic rules for entering data into the declaration form for the simplified taxation system for individual entrepreneurs:

• information is entered into the form in block letters (on the computer, the Courier New size size is 16-18 points);
• the form is filled in with dark ink (black or blue);
• no blots, errors or typos allowed on the form;
• letterhead printed when using one-sided printing;
• formnot stapled or stitched;
• only completed sheets are numbered in the form;
• digital values (value) are entered as an integer (in rubles without kopecks, amounts up to fifty kopecks are discarded, and fifty kopecks or more are brought to the ruble) and aligned to the right;
• date is filled in according to the principle: day - two digits, month - two digits, year - four digits;
• tax rate is filled according to the principle: two characters separated by ".";
• empty cells are filled with "-".

Depending on the object of taxation, different blocks are filled in the form:

Income	Income - Expenses
First sheet
Section 1.1	Section 1.2
Section 2.1.1-2.1.2	Section 2.2
Block 3 (if there are reasons - receiving a grant, donation, charitable contribution)

First, data is entered into block 2.1 or 2.2, then, based on calculations, into block 1.1 or 1.2 of the reporting form.

Form cover page

Main fields for filling out the title page of reporting:

• TIN of the entrepreneur;
• Checkpoint put a dash;
• correction number;
• tax period;
• reporting year;
• IFTS code;
• location code;
• entrepreneur's passport details;
• core activity code;
• phone number for contact;
• number of sheets;
• taxpayer's signature(code 1) or his representative (code 2);
• signing date.

How to fill out a declaration with an object of income

Main fields for completing the declaration:

• fill in cover page 1;
• go to page 2;
• specify OKTMO code;
• enter the data in section 2.1.1: on pages 110-113 indicate the total income on an accrual basis, on pages 120-123 indicate the tax rate of 6%, on pages 130-133 indicate the amount of tax calculated according to the formula p. 110 (111, 112, 113) × 6 ÷ 100;
• enter data into section 2.1.1: in pages 140–143 indicate the amount of insurance contributions paid by the individual entrepreneur, but not more than the amount of tax indicated in pages 130–133, for the corresponding tax period;
• enter data in section 2.1.2 (subject to payment of sales tax);
• fill in section 1.1: on page 020, indicate the amount of payment payable for 1 quarter, on page 040 - for half a year, on page 070 - for three quarters, on page 100 - for the year;
• go to page 3.

How to fill out a declaration with an object income minus expenses

The simplified taxation system for IP income provides for the following fields to fill in:

• fill in cover page 1;
• go to page 2;
• indicate the correct OKTMO code;
• enter data in section 2.2: on lines 210-213 indicate the amount of income on an accrual basis, on lines 220-223 indicate expenses, on line 230 indicate losses of the previous year, on lines 240-243 indicate the amount, obtained after subtracting expenses from income, in pp. 250-253 you canfix the loss of the current year, in lines 260-263 indicate the tax rate, in lines 270-273 indicate the amount of tax provided for by the special regime;
• enter the data in section 2.2: in line 280 indicate the minimum amount of tax (line 2131%) if it is more than the tax according to the simplified tax system;
• fill out section 1.2: on page 020 indicate the amount of the advance payable for 1 quarter, on line 040 - for half a year, on line 070 - for nine months, on page 100 - for a year;
• go to page 3 if the entrepreneur received a grant, donation, charitable contribution;
• fill in section 3: indicate the code for the type of receipt, the date the funds were credited to the current bank account and the terms for their use, the amount spent on time and in violation of the terms for using the funds, the amount of the remaining funds.

Zero declaration on USN

If the entrepreneur during the year did not receive income and did not make expenses, he is obliged to provide the inspector with an empty declaration. In the zero report, only the title page is filled in, lines 010 of block 1.1 and 102 of block 2.1. All other reporting lines are filled with a dash.

Deadlines for paying taxes

If an entrepreneur voluntarily ceases to use the special regime, then it is necessary to provide the tax inspector with a declaration for the hours worked no later than the twenty-fifth day of the month following the period of termination of work.

The simplified taxation system for individual entrepreneurs in 2018 determines the following deadlines for tax transfer:

• April 30payment for 2017 (due to holidays, the deadline is set to the first next business day);
• April 25 payment for 1 quarter;
• July 25 1st half payment;
• October 25 payment for 9 months.

If an entrepreneur no longer has the right to apply the simplified regime, then the declaration must be submitted no later than the twenty-fifth day of the month following the quarter in which the right to such a regime was lost.

Other taxes under USN

Insurance contributions for the current tax year, the owners of their own business must transfer before the end of the year. In 2017, the last working day fell on a weekend, Sunday, so the deadline for tax transfer was moved to the first day of work next year, January 9, 2018.

If an entrepreneur has no employees on the simplified tax system, then they must pay fixed contributions only for themselves. These payments are calculated on the basis of the minimum wage. If a businessman's income for the year exceeds three hundred thousand rubles, then, in addition to the indicated amounts, he will have to pay one more percent of the excess amount to the Pension Fund of Russia.

If an individual entrepreneur applies a simplified taxation system and has chosen income reduced by expenses as an object of taxation, then the legislation provides for contributions that reduce the taxable base:

• paid mandatory insurance contributions to off-budget funds for employees, as well as for the entrepreneur himself;
• Paying workers sick benefits from day 1 to day 3sickness (with the exception of payments for accidents that occurred during working hours and occupational diseases);
• amounts paid under voluntary insurance contracts in favor of employees in case of their sick leave.

When determining income as an object of taxation, an entrepreneur can reduce the calculated advance payments and the tax itself by the amount of contributions paid for himself and for employees. In this case, the tax payment can be reduced only by fifty percent. If the entrepreneur does not have employees on the staff, then the tax can be reduced completely.

SP Responsibility

Violations in filling out declarations, failure to meet reporting deadlines provides for punishment for business owners.

Type of error	Pen alty
No reporting, including a "zero" report in the IFTS	Fine in the amount of 5 to 30% of the unpaid tax payment for each calendar month of violation, but not less than 1,000 rubles
Violation of reporting deadlines
Prolonged delay in filing the declaration (more than ten days)	Blocking of IP current account
Providing a declaration on an outdated form	Fine or blocking of IP account

Entrepreneurs try to avoid fines and account freezes and report in a timely manner.