The transition from one tax regime to another is not so rare in the practice of legal entities and individual entrepreneurs. The reason for this is most often the natural desire to optimize your tax expenses. Often, the transition occurs for the reason that the businessman’s activity has ceased to meet the requirements of a particular tax regime.
There are many cases when a transition is necessary urgently, without waiting for the start of a new tax year. And now - regarding the single tax on imputed income. When can I switch to UTII? What are the features of the transition at different times of the year? Are there any cases in which such a transition is unrealistic? We will provide answers to these and consonant questions in the article.
Characteristic
Before figuring out how to switch to UTII correctly, we will provide a small description of this tax regime.
What does “single tax on imputed income” mean? Here it is assumed that tax payments are calculated not on the profits already held by the entrepreneur or organization, but on the income that the taxpayer plans to receive in the future.
It is important to note that not every businessman can choose this mode. Only those firms and entrepreneurs that are engaged in certain types of activities that are clearly defined in OKVED and OKUN can go to UTII. Specifically, it is rather difficult to name. Indeed, each of the regions of the Russian Federation selects from the list of such business activities certain categories that are open for transition to UTII. Therefore, in each of the subjects of the state they are different.
Hence, some difficulties are possible: in the native region, an entrepreneur freely engages in his activities while at UTII. But when moving to another region, he needs to change the tax regime, since in this subject such activity is no longer open for taxation on UTII.
Transition opportunity
Is it possible to switch to UTII? Let us return to the past only a little bit - until 2013, entrepreneurs and organizations involved in certain categories of activities were obligatory. Only in 2013, this rule was canceled. The transition to such a tax regime is now voluntary - it depends only on the desire of the businessman himself.
So when can I switch to UTII? Organizations and entrepreneurs can plan a transition to the beginning of the tax year, or to any other number.
There is only one condition: the type of activity you are engaged in should be open in your region for the "Single imputed income tax" regime. Now consider the features of the transition to UTII at different times of the year, with different taxation regimes
OSNO - UTII: features of the transition
When can I switch to UTII? If it comes to the basic taxation regime (DOS), this is realistic to do at any time of the year at the request of the taxpayer. The transition in this case is quite simple: you need to contact the local tax office with the appropriate application.
But here it is important not to forget to observe an important condition: the transition must be completed no later than 5 days from the date of commencement of work / provision of services open to the "imputation". As for the time of year, there are no restrictions on the tax legislation of the Russian Federation.
Please note that with UTII the reporting period is a quarter. Therefore, the first time you pay tax payments on an "impute" based on the results of the first 3 quarter months after your transition to this regime.
If you choose UTII after the basic tax assessment in the middle of the year, then the tax base must be taken into account based on the results of the actual duration of the business activity specifically in the month when your individual entrepreneur or LLC was registered as a tax payer on an "imputed" basis.
Basic rules for transition from OSNO
When can I switch to UTII with OSSO? We decided that this is possible at any date you wish. But do not forget about the important rules:
- Be sure to carry out the procedure for restoring input VAT on both your fixed assets and other operations. Such recovered VAT will subsequently be recorded in the "income tax" column - the line "other expenses".
- In the income tax return, you should definitely take into account profits and waste related to the period when your organization or individual entrepreneur was still in the main tax regime. This is done by filling out and submitting a profit tax declaration to the department of the Federal Tax Service for the reporting period that was before the transition.
USN - UTII: features of the transition
When can I switch to UTII FE, organizations, before paying payments under the simplified tax system? There is an important limitation: businessmen on the simplified tax system cannot switch to any other tax regime in the middle of the tax period. And here it is a calendar year.
When can I switch from "simplified" to UTII? Only with the beginning of the tax year. However, there is an exception to this rule. A businessman can at any time switch from the simplified tax system to a different tax regime in the event that his income as a result of the reporting period exceeds 60 million rubles.
But here it is important to note that in this situation, the "simplified" will be automatically transferred to the main mode - OSNO. And immediately after the quarter in which the excess of income was recorded.
When can I switch to UTII in this case? With the beginning of the next calendar year. This condition for former "simplists" remains the same.
Transition upon registration of individual entrepreneur or organization
How to switch to UTII in the middle of the year if you are registered as an entrepreneur / established an organization not at the beginning of the reporting period? It should be noted that at the start of a business activity all taxpayers automatically find themselves at the OSNO.
It is important to have time to file a tax application with the department about transferring to UTII within 5 days from the moment of starting your activity in the status of an individual entrepreneur or a commercial company. Of course, in doing so, you must perform work or provide services that are open to the "impute" in your area.
If you do not receive such a tax notice, then you will remain by default in the main mode of taxation.
Documentation for IP
From what date can I switch to UTII? As we have determined, this is not important when registering an IP / company, as well as when transferring from an OSNO. But in the transition from the simplified tax system - only with the beginning of the tax year.
To switch to UTII, an individual entrepreneur needs to prepare the following documentation for a visit to the tax inspectorate:
- Actually, a statement regarding the transition to the "impute".
- The identity document is a civil passport.
- Certificate of tax registration.
- Certificate confirming state registration of individual entrepreneurs.
Documents for organizations
As for the founders of the LLC, in order to transfer their organization to the UTII regime, they need to prepare the following papers and documents for the tax authorities:
- Application for transfer to taxation "imputed".
- Certificate of state registration of the organization.
- Certificate of registration of the LLC on official tax accounting.
Partial Transition Option
We will also touch upon this scenario. In some cases, it is legally allowed that entrepreneurs and organizations place their activities under two taxation regimes. For example, the OSNO is combined with the "impute".
This applies to organizations and individual entrepreneurs who carry out several types of activities under OKVED. Some types of work are taxed under the main regime. But other types of work / services are open categories for “imputed” taxation in this region.
It is important to observe an important rule: keep separate records of profits and embezzlement by type of activity on different taxation systems. We add that separate accounting will also be needed if taxpayers use UTII for various types of activities that are open in their entity for the application of “imputation”.
When is a transition impossible?
The transition to "impute" in some cases may be completely closed to firms and entrepreneurs. In particular, UTII cannot be selected under the following conditions:
- The number of employees is more than 100 people.
- Other individuals / legal entities have a share in the authorized capital of the company more than 25%.
- The type of enterprise is a simple partnership.
- An individual entrepreneur switched to the simplified tax system on the basis of a patent.
- An individual entrepreneur or an organization was previously under the tax regime of the Unified Agricultural Taxes (special taxation regime for those engaged in agricultural activities).
Restrictions within the field of activity
In addition, it will not be possible to switch to UTII according to restrictions in the field of business activity, which are also established by law. Here are an example of the most important of them:
- Those transport organizations that have more than 20 vehicles in their fleet cannot transfer to UTII.
- Holders of retail outlets will not be able to choose this mode if the area of the trading floor they occupy exceeds 150 square meters. m
- As for the advertising business and PR sphere, only those firms that are engaged in the field of advertising placement and distribution can apply UTII. But manufacturers of advertising structures, developers of promotion plans, landlords of advertising space will not be able to switch to this mode.
- The use of "imputation" is impossible even in the case when an individual entrepreneur or organization works not only with individual clients, but also with legal entities.
UTII attracts entrepreneurs and founders of a number of attractive tax conditions. Go to it with OSNO, when registering a business, as we have established, you can at any time of the year - most importantly, observe simple conditions. But the translation from the simplified tax system is more difficult - only with the beginning of the year. It is not possible at all to switch from UTII to UTII today.