Regimes are provided to control the payment of taxes by individuals and legal entities. Along with general forms, there are special types of systems that allow you to make payments in a simplified way. The most popular regime is the simplified taxation system for individual entrepreneurs. Individual entrepreneurs whose activities meet certain requirements can make payments using the system. By the way, not only individual entrepreneurs, but also legal entities can work on the simplified system. To do this, they must meet certain restrictions on the number, revenue, and cost of fixed assets. As soon as the limits are exceeded, the taxpayer automatically loses the right to the simplified tax system.
The simplified tax system for individual entrepreneurs is a special payment regime that allows for easy calculation of the amount of contributions; it is intended for small enterprises of all forms of ownership. The use of the simplified tax system begins with notification of the chosen tax regime to the regulatory authority. If you want to use the simplified tax system since 2016, do not forget to inform the tax office before January 15. Otherwise, switching to the simplified tax system in this tax period is impossible for you.
Advantages
- Possibility of payment once per quarter, except in cases where payers pay VAT;
- Reducing the number of amounts to be paid, since the entrepreneur is exempt from local fees and some deductions;
- Simplicity of calculation due to the fact that the base is gross revenue: it is enough to calculate the required percentage;
- The principles of documentation are simplified, it is allowed not to maintain full-fledged accounting records.
The use of the simplified tax system for individual entrepreneurs in 2016 allows you to avoid unnecessary paperwork and simplify your activities.
Other forms
Accounting is a set of programs established by government agencies for registering payers (and their agents) in order to accumulate information about them. Currently, three systems are relevant: simplified scheme, UTII, classic mode.
- The classic form (general) is usually chosen by legal entities and involves a large number of amounts to be paid - income payment, VAT, single payment, profit, property, etc.
- A simplified scheme is chosen by small enterprises. It can be calculated according to two principles: an individual entrepreneur (simplified taxes 2016) pays on the amount of revenue (15%) and on revenue indicators (6%).
- The principle of operation of a single indicator resembles a simple scheme, but is not calculated from the revenue indicator and is fixed, that is, does not depend on its size. Automatically applied to a specific list of activities.
The simplified taxation system for individual entrepreneurs 2016 is relevant if the type of activity is suitable for it.
Features of application in Russia
The principle acts as a kind of relaxation of fees. In Russia there are a number of criteria on the basis of which a decision is made on the possibility of using this scheme.
- The annual profit does not exceed 60 million rubles.
- The number of personnel at the enterprise is no more than 100 people.
If one of the points is violated, a transfer to UTII or OSN is carried out. To apply in Russia, an entrepreneur should submit an application before the end of this year, and from the next period he will pay the state according to a new scheme. The reporting period is a quarter. It is assumed that there will be an exemption from VAT on profits and property. Let's consider the costs that an individual entrepreneur bears on the simplified tax system, taxes, and fees.
Specifics
The legislation contains a list of activities that do not have the possibility of switching to this form.
- Banks and financial organizations;
- insurance funds and corporations;
- companies issuing loans, pawn shops;
- persons conducting activities in branches;
- companies producing and selling excisable goods;
- gambling organizers;
- other companies.
What taxes does an individual entrepreneur pay on the simplified tax system:
- contributions to extra-budgetary funds;
- land payment;
- transport payment;
- VAT (for import);
- Personal income tax for employees.
The main payment under this scheme is the “simplified payment” itself - a single tax under the simplified taxation system of 2016.
Conducting accounting transactions
“Simplified for individual entrepreneurs” presupposes the availability of accounting, but the final decision is made by the entrepreneur. The work is carried out in accordance with the general procedure on the basis of Federal Law and legal acts. Documents are maintained by using the “income/expenses” ledger using the “cash” method. This aspect is the main difference between the management of second-hand accounts and non-owned accounts under the simplified tax system for individual entrepreneurs 2016: the facts must be reflected for the period in which they were present, regardless of when the receipts for financial transactions were received. Simplified companies related to small businesses are not obliged to undergo an audit and can use simplified accounting methods. Accounting for individual entrepreneurs using the simplified tax system 2016 is carried out independently.
Using a simplified form, it is possible to bring tax and accounting principles closer together. Reporting for the year is presented in the form of a balance sheet, financial results report, and appendices. Keeping accounting for an individual entrepreneur using the simplified tax system presupposes the fact that the main reports include indicators by groups of items, and not by individual items. Applications contain only the most important data.
Calculation options
The main question remains: the individual entrepreneur tax on the “simplified” 2016 – how much to pay? The amount is calculated on the basis of a base, the size of which is the revenue or profit of the enterprise. The size is determined by the monetary value of the object. The individual entrepreneur rate on the simplified tax system is also taken into account - 6% or 15%. If the object is the “receipt” indicator, then the calculation is carried out using the appropriate base. If “revenue minus expenses”, then process improvement is carried out based on profit. The profitability of one or another option depends on the amount of expenses for the activity.
The composition of receipts includes proceeds from sales and amounts received outside of sales. The expenses may include any items. Keeping records of individual entrepreneurs on the simplified tax system 2016 is carried out within the framework of the “cash” method, which means the recognition of receipts on the date of receipt of money.
Simplified rates
Interest rates depend on the object.
- Simplified 6% for individual entrepreneurs 2016 for the “revenue” object;
- Simplified tax for individual entrepreneurs 2016 15% for the object “income minus expenses”.
These rates are the maximum; in practice, there are many cases of their reduction.
- IP simplified taxation system income 1%;
- IP simplified tax system “Income minus expenses” 5%.
For example, in Moscow there is a decrease in the rate for the second object for some areas of business, in conditions of revenue of 75% or more. This applies to processing industries, social services, and sports activities.
Payment of the minimum contribution
When considering the question of how to pay taxes for individual entrepreneurs using a simplified method, it is necessary to mention this aspect. If you select the difference as the object, you will have to make a minimum amount instead of the usual payment, but it is important to fulfill the condition:
(Income - expenses) * Rate< Доходы * 1%.
The minimum indicator is 1%. The difference between its value and the indicator calculated in the usual manner can be taken into account in the next period. The total amount is subject to reduction by advance payments. Running an individual entrepreneur in a simplified manner presupposes the acceptance of these features.
Advantages for the object “income”
- Small bet size;
- Ease of forecasting amounts;
- It is easy to carry out accounting for individual entrepreneurs using the simplified tax system in 2016.
This option is suitable for individuals with a small amount of expenses during the period of activity.
Advantages for the object “income minus expenses”
- Small base;
- Possibility of smaller payments.
But a simplified individual entrepreneur for beginners in 2016, as well as for existing enterprises, has nuances: the amount of expenses is taken into account. It is often more profitable to pay 15% of the profit than 6%.
Examples
Let's consider individual entrepreneurs in cargo transportation (simplified taxes for 2016), examples: let's say the amount of revenue for the quarter amounted to 200,000 rubles. For the “income” object, a payment of 12,000 rubles is expected. However, if the costs of maintaining, operating and storing transport, insurance make up the lion's share of this amount (150,000 rubles), then the new tax base is 50,000 rubles. 15% of it is only 7,500 rubles. That is, the second calculation option is more profitable.
So, we looked at individual entrepreneurs in a simplified way: what taxes they pay in 2016, what principles are used to calculate them. Subject to compliance with legal regulations, entrepreneurs can conduct transparent activities and choose a profitable method for themselves.
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Entrepreneurs and organizations switching to a simplified taxation system are primarily interested in the question of which is better: simplified tax system 6 or 15%? After all, the selected rate cannot be changed until the end of the year. And the tax base and the amount of deductions depend on it. Therefore, when choosing an option, you need to weigh everything carefully.
Feature of simplified tax system 6%
For the “income” object, tax is paid at a rate of 6% on all financial receipts, including non-operating income, regardless of the amount of expenses in the reporting period. Accounting is carried out using the cash method.
The advance payment is calculated based on the results of the quarter. The formula for determining tax is:
Tax = Income x 6%
Advantage
Businessmen on the simplified tax system with employees can reduce tax due to paid insurance premiums, temporary disability benefits (except for occupational diseases), and voluntary insurance. These costs can reduce the simplified tax by a maximum of half.
When there are no employees, the amount is reduced due to insurance contributions for oneself to the Pension Fund and federal health insurance.
EXAMPLE
The individual entrepreneur operates without employees. For 2016, income amounted to 500,000 rubles. Then the tax on the simplified tax system is 6% - 30,000 rubles. The contributions that the merchant made for himself in 2016 amounted to 28,633.5 rubles. As a result, the amount of simplified tax payable is 1,366.5 rubles.
Flaw
When calculating tax, in general, only income is taken into account. But in practice, the amount of costs is not always regular and sometimes exceeds planned limits and expectations. If this happens frequently, the use of the simplified tax system of 6% will result in losses.
Features of simplified tax system 15%
Simplified people who have chosen a rate of 15% make a payment from the difference between income and costs (from profit). The formula for calculation is:
Tax = (Income - Expenses) x 15%
When determining the tax base, costs are included in it if:
- necessary for the operation of the enterprise;
- mentioned in the Tax Code of the Russian Federation (Article 346.16);
- paid, which is documented (there are cash receipts, bank account statements, payment orders, etc.);
- actually took place and this fact is evidenced by invoices, acts of receipt of services, etc.
Advantage
Flaw
Some expenses incurred are confirmed by two types of documents: for their payment and for the receipt of their subject for further actions. In the absence of one of them, it is impossible to count on a reduction in the tax base. Often, evidence cannot only be a receipt, BSO, contract or invoice.
Which simplified tax system is better to choose: 6 or 15%
When costs are usually absent or permanently insignificant, it is advisable to use the simplified tax system of 6%. Using this rate is beneficial for organizations and individual entrepreneurs whose expenses do not exceed 60% of income. And taxation at a rate of 15% is more beneficial for a business that has a low level of profitability and small markups.
EXAMPLE
The Cosmos company received an income of 120,000 rubles for the quarter. Expenses amounted to 80,000 rubles. The tax amount will be:
- on simplified tax system 6%: 120,000 x 6% = 7,200 rubles.
- on the simplified tax system 15%: (120,000 – 80,000) x 15% = 6,000 rubles.
If expenses increase to 87,000 rubles. deductions under the simplified tax system of 15% will amount to 4950 rubles, then it is more profitable to use - income minus costs. But if costs decrease to 68,000 rubles, the company is obliged to pay 7,800 rubles. This means that it is better for her to choose the simplified tax system of 6%.
It is worth remembering about deductible amounts that can reduce payments to the budget. They cannot be more than half of the simplified tax using the simplified tax system of 6%. And the object of taxation “income minus costs” is beneficial to individual entrepreneurs and organizations if the following equality is true:
(Income-Expenses) x 15%
Give a clear answer right away which is better: simplified tax system 6 or 15%, sometimes difficult. A simplifier should carefully calculate the amount of his expenses: how large it is and whether a deviation from the norm and expectations is possible. This is the only way to make the right decision on the method of taxation.
By choosing a simplified taxation system (STS), legal entities and individual entrepreneurs can independently decide which object of taxation is more interesting and profitable for them. There are two of these objects: “income” with a tax rate of 6%, or “income minus expenses” with a tax rate of 15%. Only the participants in a simple partnership agreement or a trust management agreement were left without the right to choose. There is only one option - they use the simplified tax system only with the object “income minus expenses”. Those who have chosen the simplified tax system of 6 percent of the taxable base (and this is all the income of the simplified tax) will pay exactly 6% to the budget in the form of a single tax. Let's consider the main points of its calculation and payment.
How to calculate tax with simplified tax system 6%?
The Tax Code obliges taxpayers to calculate the tax at the simplified tax system of 6% independently (Part 2 of Article 346.21 of the Tax Code of the Russian Federation). What income is subject to simplified tax is stated in Article 346.15 of the Tax Code of the Russian Federation. The simplified tax period is a calendar year, and the reporting periods are 1st quarter, half a year and 9 months.
Advance tax payments to “simplified” residents must be calculated quarterly. Under the simplified tax system, “income” is 6%, all income received during the quarter (that is, on a cumulative basis from the beginning of the year to the end of each quarter) is multiplied by the tax rate. Previously accrued advances for the previous quarter are subtracted from the resulting figure. The deadlines for paying advances for “simplified” tax are the same for all taxpayers: no later than April 25 for the 1st quarter, July 25 for the half-year and October 25 for 9 months. Tax returns are submitted once a year; they do not need to be submitted at the end of the quarter.
Example:
Individual entrepreneur Ivanov earned 32,000 rubles in the 1st quarter of 2016. At the end of the quarter, he calculated the simplified tax system at 6%: 32,000 rubles. x 6% = 1920 rub.
In the 2nd quarter, income amounted to 21,000 rubles. The tax is calculated on an accrual basis: (RUB 32,000 + RUB 21,000) x 6% – RUB 1,920. = 1260 rub.
At the end of each year (tax period), taxpayers using the “simplified 6%” rate calculate the final tax amount: all income received for the year is summed up and multiplied by the 6% rate. Next, the amount of advances must be subtracted from the result obtained, as shown in the example above. The simplified tax is paid on March 31 of the following reporting year (if the payer is an organization), and on April 30 (if the payer is an individual entrepreneur). A simplified tax return must be submitted within the same time frame.
simplified tax system “income”. Reduction of tax on contributions
If the taxpayer’s choice falls on “income,” he is deprived of the opportunity to reduce the tax base for the simplified tax by the amount of his expenses. However, the tax can be reduced by applying statutory tax deductions.
“Simplers” have the right to reduce the calculated tax (and advances) by the amount of insurance contributions to the Pension Fund, Social Insurance Fund, Federal Compulsory Medical Insurance Fund, as well as contributions for injuries (clause 3.1 of Article 346.21 of the Tax Code of the Russian Federation). By Law of July 24, 2009 No. 212-FZ, all persons using the 6% simplified tax system are required to pay insurance contributions to the following funds: Pension Fund, Social Insurance Fund, Federal Compulsory Medical Insurance Fund. Legal entities and entrepreneurs pay monthly insurance contributions to the funds from employee salaries, as well as from payments under civil contracts concluded with individuals.
Let us remind you that for amounts exceeding the basic limit of an employee’s income, reduced insurance contributions are paid to the Pension Fund and the Social Insurance Fund. The maximum base for calculating contributions changes annually. In 2016 it was 796 thousand rubles. for contributions to the Pension Fund and 718 thousand rubles. – for contributions to the Social Insurance Fund (Resolution of the Government of the Russian Federation dated November 26, 2015 No. 1265), for the Federal Compulsory Medical Insurance Fund no limit has been established. The current tariffs for contributions to the Pension Fund are 22%, to the Social Insurance Fund – 2.9%, to the Federal Compulsory Medical Insurance Fund – 5.1%.
Individual entrepreneurs who do not have employees pay fixed contributions to the Pension Fund and the Social Insurance Fund: their amount is prescribed in Article 14 of Law No. 212-FZ of July 24, 2009.
The tax under the “simplified 6 percent” can be reduced only in the quarter in which insurance contributions to extra-budgetary funds were paid, even if they were accrued for a different quarter. If you have assessed contributions but have not yet transferred them to the budget, they cannot be used as a deduction.
For example, you calculated insurance premiums for March 2016, but paid them in April 2016. The simplified tax must be reduced by the amount of contributions paid when it is transferred for the first half of 2016, and not for the 1st quarter. Despite the fact that initially the contributions are “March”. Please keep in mind that the amount of insurance premiums by which the payment under the simplified tax system can be reduced cannot exceed 50% of the total amount of tax or advance payment under the simplified tax system. If the “simplified” individuals are individual entrepreneurs without employees, they reduce the tax on all contributions paid to the Pension Fund and the Federal Compulsory Medical Insurance Fund, that is, 100%.
STS 6 percent and tax reduction in 2016
In addition to insurance contributions to extra-budgetary funds, in 2016 the simplified tax can be reduced for a number of other expenses.
Costs of paying employees temporary disability benefits. You can reduce the amount of tax by these payments, but not completely, but only the part that the employer pays on the certificate of incapacity for the first three days of the employee’s illness (clause 1, clause 2, article 3 of the Federal Law of December 29, 2006 No. 255-FZ) . For the remaining days of sick leave, the simplified tax cannot be reduced. In addition, there is no deduction for the amount of maternity benefits, as well as for contributions for injuries - employees receive this money from the Social Insurance Fund (at the expense of the fund).
Contributions under voluntary personal insurance contracts concluded with insurance organizations in favor of employees. Necessary conditions for reducing the tax on these contributions: the insurer must have valid licenses; insurance contracts are concluded specifically in favor of employees in the event of their temporary disability (except for injuries) for those days that are paid by the employer; the insurance payment cannot be more than the amount of sick leave for the first three days of the employee’s incapacity for work, that is, for 3 days paid by the employer (clause 3, clause 3.1, article 346.21 of the Tax Code of the Russian Federation).
For metropolitan entrepreneurs and trade organizations, a simplified tax can reduce the trade tax paid in the reporting period. However, only in the part calculated exclusively from the taxpayer’s trading activities at the simplified tax system of 6%. In 2016, the fee may be introduced in St. Petersburg and Sevastopol, but for now it is collected only in Moscow. To apply the deduction no later than five days from the date of occurrence of the object of taxation with the trade tax, the taxpayer must provide a notification about this to the tax office (clause 8 of Article 346.21 of the Tax Code of the Russian Federation).
It is important to remember that even if the total amount of all payments by which the tax can be reduced at a simplified rate of 6% (contributions, sick leave benefits, payments under voluntary personal insurance contracts) is equal to or greater than the calculated tax, the tax can be reduced only by 50% of its total amount or advance. There are no restrictions in the Tax Code on the amount of deduction in terms of the trade tax for the “simplified 6%” tax, so the simplified tax can be reduced by the entire amount of the trade fee paid.
The taxation system is chosen even before registering an individual entrepreneur. Simplified taxes (STS) in 2019 for individual entrepreneurs are the most feasible and profitable. This system got its name due to the minimum reporting and payments - one single declaration at the end of the year and a single tax fee paid quarterly. Simplified legislation exempts individual entrepreneurs from paying VAT, personal income tax and property tax. From January 1, all payments - taxes and mandatory insurance contributions - are paid to the Federal Tax Service.
Restrictions on the use of the simplified tax system for individual entrepreneurs in 2019
Not all individual entrepreneurs are subject to the simplified tax, but only those that satisfy the following conditions.
- Staff of no more than 100 employees.
- Annual income up to 60 million rubles.
- Availability of commercial real estate worth no more than 100 million rubles.
From the moment the above limits are exceeded, the individual entrepreneur is obliged to switch to OSN. In accordance with paragraph 5 of Art. 346.5 and paragraph 5 of Art. 346.13 of the Tax Code of the Russian Federation, he is obliged to notify the tax office at the place of registration about this within 15 days after the expiration of the tax period in which the limit was exceeded.
Entrepreneurs involved in the gambling business, mining and processing of minerals, and production of excisable goods do not fall under the simplified tax system. The application of the special regime does not apply to insurance and banking structures, organizations with branches, funds, pawnshops, notary and lawyer's offices, individual entrepreneurs on the Unified Agricultural Tax.
Simplified tax options for individual entrepreneurs
There are two types of simplified tax system for individual entrepreneurs: 6% of income and 15% of income minus expenses.
simplified tax system 6 percent
A rate of 6% applies to total business income. The simplified rate of 6 percent is beneficial for individual entrepreneurs providing services - materials are not written off, there is no purchase and sale of goods.
Since 2016, regions have been given the right to reduce the general 6 percent rate to 1%. It is fixed by local law. If this is not accepted, then the tax is calculated according to the general rules, based on a rate of 6%.
simplified tax system 15 percent
For entrepreneurs whose activities involve regular costs for its implementation, the second option is more profitable - individual entrepreneur income minus expenses. The tax base is taken into account the amount of income reduced by the amount of expenses. From it 15% is paid to the budget. This option is preferable to manufacturing and trading companies that regularly purchase materials and goods for processing and sale.
Local law may provide a preferential rate of 5%. If there is none, then the general 15% applies.
Which simplified tax system option should an individual entrepreneur choose in 2019?
It can be difficult for beginning entrepreneurs to decide on the tax base option. The amount of tax payable will be equal in both cases if expenses are exactly 60% of income.
- The simplified tax system of 6% of income is beneficial in cases where the amount of expenses is less than 60% of income.
- The simplified tax system of 15% of “income-expenses” is beneficial if the share of expenses exceeds the 60% barrier.
Only documented amounts are taken into account as income and expenses. Expenses are confirmed by payment and shipping documents specifically for individual entrepreneurs, and not for individuals. A complete list of expenses that can be taken into account to reduce the tax base is given in Art. 346.16 Tax Code of the Russian Federation.
How and when to pay the simplified tax system
The calculation and payment of the simplified tax system for individual entrepreneurs in 2019 is carried out according to the advance system. Payments are calculated based on quarterly results on an accrual basis.
- Until April 25 – for the first quarter.
- Until July 25 – for the first half of the year.
- Until October 25 – for the previous 9 months.
- Until April 30 – for the previous year (until April 30, 2019, the simplified tax system for 2018 is paid)
For violation of the above deadlines, a penalty is provided in the amount of 1/300 of the Central Bank rate for each day of delay plus a fine of 20% of the unpaid amount.
Simplified tax calculation for individual entrepreneurs
To calculate how much individual entrepreneur tax to pay at the simplified rate of 6%, take the entire gross income (all funds received on the account and/or cash desk) for the reporting period, for example the 1st quarter, and multiply it by a rate of six percent. This is the amount of tax payable.
In the case of the “income minus expenses” object, the same gross income is taken into account. Documented and economically justified expenses are deducted from it. For example, if a batch of goods is purchased for resale, then only the costs of goods sold during the same period can be used as expenses. That is, if a ton of milk is purchased, and half is sold, then expenses can only be written off for this half.
The influence of insurance premiums on the amount of the simplified tax system payable
Timely payment of mandatory insurance premiums allows you to reduce taxes payable under the simplified tax system.
- STS 6% of income. The single tax itself (the amount calculated for payment) is reduced.
- STS 15% of “income-expenses”. The tax base is reduced (insurance premiums are included in the amount of expenses).
In the first case, a tax reduction is possible by no more than 50% for individual entrepreneurs with hired employees and by 100% for an entrepreneur without employees.
For an individual entrepreneur working for himself, the 6 percent tax is calculated as follows:
Gross income for the tax period (for example, the 1st quarter) X 6% - paid insurance premiums for the same period (the amount of fixed insurance premiums of individual entrepreneurs for themselves for the quarter is 6,997.50 rubles in 2019).
90,000 rub. x 6% — 6,997.50 rub. = 5,400 – 6,997.50 = 0.
If the annual income limit of RUB 300,000 is exceeded. Individual entrepreneurs pay additional insurance premiums in the amount of 1% of the amount exceeding the limit. This additional payment is taken into account when repaying the last payment under the simplified tax system (until April 30).
How to report to a tax individual entrepreneur using a simplified method?
The simplified tax system provides for a minimum of reporting.
For individual entrepreneurs without employees
- Declaration under the simplified tax system - until May 2, 2019. for 2018. More information about the procedure for preparing and submitting a declaration -;
- The “1-Entrepreneur” form is provided to Rosstat upon its request (they send a notification and the form itself by mail).
For individual entrepreneurs with employees
To the tax office:
- Declaration under the simplified tax system until May 2, 2019 for 2018;
- (until January 20);
- Calculation of insurance premiums (for the 1st quarter - until May 2; then until July 31 and October 30, respectively);
- 6-NDFL (until April 3 for the previous year, quarterly: until May 2, July 31, October 31);
- 2-NDFL (until April 3 for the previous year).
- SZV-M - monthly until the 15th of the next month.
- Report on contributions for employees for injuries - until April 20, July 20 and October 20 on paper or until April 25, July 25 and October 25 electronically.
A simplified individual entrepreneur without employees has minimal reporting. When forming a staff, regardless of its size - 2 people or 99 - reporting is submitted virtually the same as for the OSN. The more employees there are, the more labor-intensive reporting is considered to be.
Reporting methods
You can submit reports in person, immediately receiving a confirmation of delivery, but at the same time waste time on travel and queues. Another option is to send reports to the tax office and funds by registered mail with a list of attachments. Notification in this case is mandatory. It allows you to record the date of delivery of the item, which is very important when sending reports on the last days of the deadline. Electronic document management is not available to everyone. For businessmen with little income, it is not practical to install special programs and maintain them.
What are the benefits of taxes under the simplified tax system in 2019 for individual entrepreneurs?
The choice in favor of the special taxation regime of the simplified tax system is justified for the following reasons.
- Minimum documentation. Regular reports throughout the year are submitted only for employees - calculations for insurance premiums, injuries, personal income tax. A small staff and a stable salary in the form of a fixed salary allow them to be formed quickly and promptly sent to the tax office and the Social Insurance Fund.
- At the end of the year there is only one declaration. To compile it, it is necessary to regularly record income (at a rate of 6 percent), scrupulously and correctly reflect expenses (at a rate of 15%). Keeping a book of income and expenses is mandatory and helps to fill out the declaration quickly and without errors.
- When working on 6% of income, an individual entrepreneur with employees can only keep records of wages and salary taxes. The remaining tax registers for expenses are optional.
- For certain types of activities, a preferential rate of insurance premiums for employees is provided (20% instead of 30%).
- An individual entrepreneur has the right to change the object of taxation from “income” to “income minus expenses” by promptly notifying the tax office. This is possible if the nature of the activity falling under the simplified tax system changes.
- In most regions of the Russian Federation, preferential rates of the simplified tax system, established by local laws, apply, which provides significant savings.
- Possibility of tax reduction on the amount of insurance premiums paid (up to 100% for individual entrepreneurs without employees). Individual entrepreneurs with employees can reduce tax to 50% using the simplified tax system of 6% and take into account 50% of paid insurance premiums to reduce the tax base according to the simplified tax system of 15%.
- An entrepreneur newly registered with the simplified tax system is subject to a two-year tax holiday at a 0% rate.
- Combination of simplified tax system and UTII or simplified tax system and PSN. This is done to minimize the tax burden. Some of the company’s activities are subject to simplified taxes, and some fall under UTII or a patent.
An already working entrepreneur has the right to switch to the simplified tax system only from the beginning of the calendar year. To do this, you must notify the tax office no later than December of the previous year about your desire to use the simplified tax system starting next year. Newly registered individual entrepreneurs have the right to immediately submit an application to switch to a simplified system.
Creating your own business entails not only the right to receive profit from business activities, but also the obligation to pay taxes. Therefore, every individual entrepreneur must clearly know what and when taxes he needs to pay to the state budget.
How to open an individual entrepreneur and what taxes to pay?
Registration as an individual entrepreneur automatically puts a citizen with this status in a special position in the field of taxation, since in addition to the tax payments provided for all citizens of the Russian Federation, an individual entrepreneur must pay a number of other taxes.
The number of tax payments an entrepreneur makes depends on the taxation system he chooses, as well as on the size of the business. As a rule, already at the planning stage of a future enterprise, the type of taxation is determined, which makes it possible to determine the tax burden on the business and thereby correctly calculate the profitability of the project.
Individual entrepreneur taxes in 2016 without employees
An individual entrepreneur must pay taxes in accordance with the chosen taxation system, which did not undergo significant changes in 2016. Let us immediately note that all tax regimes under consideration apply only to business activities. But the individual entrepreneur, as an individual, also has the obligation to pay taxes, which are not canceled even by special tax regimes. For example, if an entrepreneur is still working under an employment contract, then his employer withholds personal income tax from such an individual entrepreneur, and also pays contributions to pension and social security. The situation is similar with transport and land taxes, which individual entrepreneurs pay as an ordinary citizen.
General taxation system
This system pays: value added tax, personal income tax and property tax. This system provides for quarterly VAT reporting with monthly payment of this tax, as well as advance payments for personal income tax. Property tax is paid once a year based on the requirements of the Federal Tax Service of the Russian Federation; in 2016, it will be necessary to pay this tax for the previous year before October 1.
The general tax system carries the maximum tax burden, so it is suitable for a small number of entrepreneurs whose activities are related to servicing large companies or if the volume of revenue is quite large. By the way, it is the absence of restrictions on the amount of profit that is the main advantage of OSN.
All entrepreneurs who have not submitted applications for choosing a special tax regime are transferred to the general system upon registration. You can return to the OSN from the special regime either voluntarily - from the new tax year, or without fail - if you exceed the maximum amount for the special regime, in 2016 it is 79,740,000 rubles.
Simplified taxation system
It is a special tax regime in which individual entrepreneurs are exempt from a number of taxes. This regime allows an entrepreneur to independently determine the object of taxation, thereby giving the opportunity to choose the most profitable option.
The legislation provides for two options for taxation of the simplified tax system:
- Income – the tax base is the entire gross revenue and is taxed at 6%.
- Income reduced by expenses - the tax base in this case is formed by the net profit of an individual entrepreneur, which is taxed at a rate of 15%.
When choosing the second option, you should remember that not all expenses reduce the tax base; a specific list of expenses taken into account is determined by the Tax Code of the Russian Federation.
Advice: practice shows that the most optimal choice would be simplified tax system income for entrepreneurs providing services, and simplified tax system income minus expenses– for the trade sector, including public catering.
This tax regime is most in demand by entrepreneurs, not only for the opportunity to choose the subject of taxation, but also for the simplicity of tax calculations, as well as convenient terms for its payment.
Simplified individual entrepreneur tax in 2016 - how much to pay
The entrepreneur calculates the amount of tax according to the simplified tax system independently; the calculation is quite simple, so there is no need to involve accountants to prepare reports and determine the amount of tax.
The calculation is done as follows:
- on a simplified subject, income is 6% of the total revenue;
- on income reduced by expenses - 15% of the difference between income and expenses.
When to pay taxes for individual entrepreneurs in 2016 using the simplified tax system
The legislation determines the tax period according to the simplified tax system – a calendar year. Payment of the simplified tax must be made no later than April 30 of the year following the reporting year, i.e. for 2016 it will be necessary to pay by 04/30/2017. But during the year it is necessary to make advance payments; this must be done at the end of the first quarter, half a year and nine months. The listed advance payments reduce the total tax amount at the end of the year.
The transition to a simplified tax system is voluntary and is carried out at the request of the entrepreneur. It may be filed concurrently within thirty days of registration. In this case, the simplification will be applied from the moment of registration of the individual entrepreneur. You can also submit an application to switch to the simplified tax system at any other time, but then the possibility of using it will only appear in the new year.
A single tax on imputed income
This tax regime was preserved in 2016 despite numerous conversations about its abolition. The single tax on imputed income eliminates all taxes, with the exception of property tax. The tax amount is determined as 15% of the possible profit, which is the tax base. It is calculated based on special coefficients and physical indicators that take into account the type of activity and the procedure for its implementation.
Only entrepreneurs providing services or selling goods to consumers - individuals, subject to certain restrictions on the type of activity, can apply UTII. This mode allows you to do this without reporting. It is possible to combine UTII with other modes, for example, simplified.
Patent tax system
It is the newest special tax regime, but a significant number of entrepreneurs have already appreciated its advantages and began to actively use it in 2016. Under the patent taxation system, an individual entrepreneur does not actually pay tax, but acquires a patent to carry out a certain type of activity. The amount payable for a patent is calculated based on the basic return and a rate of 6%.
A special feature of a patent is the ability to purchase it for a period of one month to a year, which allows you to optimize tax expenses with the actual period of business activity. For example, when renting out houses only in the summer, it is much more convenient to purchase a patent for the season than to be on UTII and pay tax every quarter, or to the simplified tax system to report for the year and transfer advance payments.
A feature of the patent system is the possibility of application only in relation to types of activities named in a special regulatory act of the subject of the federation. It is the fact that regional authorities regulate the list of activities that fall under the PSN that determines the territorial restrictions on the use of a patent - application is possible only within the borders of the subject of the Russian Federation where the patent was issued. At the same time, there is no connection to the region of registration of the individual entrepreneur himself, so an entrepreneur from Kemerovo can obtain a patent in Moscow if he plans to engage in the type of activity that is covered by the PSN in the capital.
A patent is issued only for one type of activity, so when working in several areas, you will need to purchase patents for each of them, or combine them with other types of taxation.
Some experts define the patent taxation system as when opening an individual entrepreneur in 2016, and to some extent this is true. This regime allowed many people to come out of the shadows and have their own businesses that bring in a small income. For example, patents are in demand among tutors and people renting out real estate. Compared to other taxation systems, in these areas the costs of payments to the budget for individual entrepreneurs are minimal.
Unified agricultural tax
A special tax regime for entrepreneurs working in the production of agricultural products, which provides for the payment of a single tax. To apply the unified agricultural tax, 70% of revenue must come from agricultural production.
The tax amount is calculated as 6% of the tax base, which is formed by income minus expenses. The individual entrepreneur pays an advance payment for this tax for six months, and the remaining amount by March 31 of the following reporting year.
As experts note, this tax regime is very convenient, as it can significantly reduce the burden on entrepreneurial initiatives in the field of agriculture. For example, in this case it becomes very profitable due to the low tax rate.
Taxes for individual entrepreneurs in 2016 with employees
The amount of taxes paid by an individual entrepreneur also depends on the availability of employees, since hiring labor entails the need to pay additional tax payments and contributions to extra-budgetary funds.
For each hired employee, the entrepreneur must pay personal income tax in the amount of 13% of income, as well as timely report on it. In addition, payments to individuals, including those under civil contracts, must pay contributions to the Pension Fund in the amount of 22%. And payments under employment contracts also provide for the payment of insurance contributions to the Compulsory Medical Insurance Fund and the Social Insurance Fund, the amount of which is 5.1% and 2.9%, respectively.
Payments by individual entrepreneurs to extra-budgetary funds
In addition to tax contributions to the budget, the legislation provides for the obligation of individual entrepreneurs to pay certain contributions to extra-budgetary funds: pension, compulsory health insurance, social insurance.
Tax for individual entrepreneurs in the pension fund in 2016
From the moment of registration of an individual entrepreneur, the entrepreneur has the obligation to pay contributions to the pension fund for himself. In 2016, the amount of these contributions is:
- 18610, 80 rub. - to the Pension Fund of Russia.
- 3650, 58 rub. - to the MHIF.
The indicated amounts are payable per year of being an individual entrepreneur; if this period is shorter, the amount is proportionally reduced. These fixed contributions are mandatory and the entrepreneur is obliged to pay them, regardless of whether he carries out entrepreneurial activities, as soon as he terminates this obligation.
In addition, the legislation provides for additional payments to the Pension Fund for those entrepreneurs whose income exceeded 300 thousand per year. In this case, the individual entrepreneur must transfer 1% of the amount in excess of the specified limit to the extra-budgetary fund. But the legislation limits the maximum amount of contributions for individual entrepreneurs to the Pension Fund and in 2016 it is 148,886.40 rubles.
Social security contributions
The legislation also provides for the payment of insurance contributions to the Social Insurance Fund by individual entrepreneurs, but these contributions for the entrepreneur himself are voluntary.
After registration, an individual entrepreneur can register with the Social Insurance Fund and pay contributions in case of temporary disability. In 2016, the amount of such contributions is 2075.82 rubles per year. Payment of these contributions gives the individual entrepreneur the right to receive benefits upon the occurrence of an insured event, for example, temporary disability, the so-called “sick leave”.
Including in the form of an individual entrepreneur, this is an opportunity to gain financial independence and find an application for your own knowledge and skills. But in addition to the right to make a profit, the business owner also has a number of obligations, the main of which is paying taxes. As a rule, this necessity does not make entrepreneurs very happy, who feel that their earnings are being taken away from them, while forgetting about the social responsibility of business, and taxes are part of such responsibility.
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The existing tax system allows you to optimize tax expenses in such a way that the burden on business is minimal. A correctly chosen tax regime allows you to pay taxes honestly, without resorting to shady schemes and risking getting into an unpleasant situation.
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