Let's look at the differences between a patent and a simplified tax system. Various types of taxation systems designed for entrepreneurs, allow you to choose the best option. But any mistake can be fraught with additional expenses. The two most common types are simplified system and patent. What will be better to choose? It is rather difficult to answer unequivocally what is more profitable for IP. Here it is necessary to take into account the type of activity along with the total number of employees (if any) and annual profitability.
IP work on STS
Among the features of the “simplified system”, the relative simplicity of accounting along with reporting and a small tax burden are highlighted. Such a system is provided specifically for entrepreneurs and small businesses. You can go to the simplified tax system if:
- The total value of all property is less than one hundred million rubles.
- The number of employees is less than one hundred people.
- Annual yield is below a fixed amount.
The following categories of entrepreneurs may be an exception:
- Notaries with lawyers.
- Representatives of the gambling business and pawnshops.
- Manufacturers of excisable products.
- Those who, in view of their sphere of activity, pay the agricultural single tax.
- Companies that sell or extract minerals (the exception is in this case useful common resources).
Now let's talk about the types of simplified system.
Types of "simplified"
STS for entrepreneurs, as a rule, is of the following types:
- Six percent "simplified." In this case, it is supposed to pay 6% of all profitability along with mandatory contributions for employees and yourself personally to the Pension Fund and the compulsory medical insurance service. A large number of such declarations on the simplified tax system for 2018 were filed.
- Fifteen percent type. Assumes payment of 15% of profit minus expenses. As in the first case, payments to the above services are mandatory for yourself and your employees.
Choosing between the simplified tax system and the patent, one must take into account the difference in the offset and calculation of insurance premiums. In that case, if a person works alone and calculates a single tax when "simplified", then contributions can be reduced quarterly, but no more than by 50%.
IP patent work
Such a tax system is quite simple and straightforward. Its meaning is as follows: IP buys a patent for the type of activity that it actually engages in and pays for it (it is possible for several months, but not more than one year). Until 2013, this system was called USN on the basis of a patent. Now it’s just PSN.
True, not every entrepreneur can choose this type of taxation, which is regulated by Article No. 346 of the Tax Code. First of all, his type of activity must necessarily be on the list of acceptable. In addition, the entrepreneur should have no more than fifteen employees, and profit should not exceed sixty million a year.
When thinking about what will be more profitable for a businessman (patent, USN), the price of the latter should be taken into account. It turns out that by acquiring it, the entrepreneur declares that his potential profit is equal to a certain amount. This is beneficial, first of all, to one whose profitability is higher.
In the event that the income is lower, the transition from a simplified patent to a patent may not bring any benefits. You can always find out its cost for various types of activities on the website of the Federal Tax Service, where you just need to choose your region. Depending on the place of residence, the price usually varies.
Difference from "Simplified"
What is the difference between patent and USN? Typically, it is as follows:
- The STS profit tax is levied on the entire amount of income received.
- At PSN they are taxed with the potential income regardless of the fact of its receipt. In the event that the entrepreneur’s profit actually exceeds the amount of potential earnings, then there will be no need to pay taxes.
What other differences of the patent from the simplified tax system can be called?
- At the USN insurance premiums the amount of tax is reduced.
- At PSN, the premium does not reduce the value of the patent.
STS or patent for IP - which is more profitable?
Simplified "is a system that has been worked out for years, on which entrepreneurs and various institutions are allowed to work. It was created specifically for small organizations that have a small cash flow along with a limited staff.
But such a system is contraindicated for some groups of taxpayers. We are talking about notaries, agricultural tax entrepreneurs, excise tax payers and others. Unlike PSN, in this case they allow the use of an unlimited number of types of classes in one mode. Thus, answering the question of which is better, I must say that everything directly depends on the circumstances in which the business is launched or developed.
We will tell below about the use of the simplified tax system and the patent simultaneously.
Insurance premiums
With respect to entrepreneurs, the minimum contributions are established, which are established at the legislative level and depend on the minimum wage. The value of annual transfers may remain at the level of previous years, or may increase due to an increase in the minimum wage.
Entrepreneurs are paid contributions using the following rates:
- Contributions to the pension insurance system in the amount of twenty-six percent of the total amount without any distribution to the funded and insurance parts, regardless of the actual age of the person.
- Transfer to compulsory medical insurance in the amount of five percent of the total amount.
- If the basic income exceeds three hundred thousand rubles for pension insurance, an additional amount is paid in the amount of one percent of the violated limit.
Social insurance contributions are paid by entrepreneurs voluntarily. Thanks to insurance, individuals are able to receive disability benefits. Such persons must be fully paid contributions for the year that precedes the occurrence of the insured event.
Declaration
A fairly common question from an individual entrepreneur to PSN (patent system of taxation) is whether they are required to fill out a declaration for the year or not. The answer in this case will be quite simple: if a businessman carries out activities that fall under the patent, then it is definitely not necessary to hand over it. But the declarations on the simplified tax system for 2018 are necessarily transferred to the tax.
Transition
So, the transition to this type is carried out only according to the version of the activity in respect of which it was issued. When the entrepreneur continues to conduct other types of work, then they may well be taxed on the "simplification". The transition from the simplified tax system to the patent is allowed at any time throughout the year. For this, it is only necessary to submit an application to the tax authority for a patent at the place of residence, no later than ten days before the start of activity.
The tax authority considers the application for a patent within five days from the receipt of the paper from the entrepreneur. As a result of consideration of the application, a decision is made to issue an SPE or a decision to refuse.
The reasons for this may be:
- Complete non-compliance of the declared type of activity with the list of species that fall under the application of SPE.
- Indication of invalid patent validity.
- Tax arrears.
- Violation of the conditions for the transition to PSN.
It is worth noting that quite often one has to deal with the opinion of businessmen that the patent system for taxation is very profitable. And even those citizens who, due to the conditions of its use, cannot switch to it, are trying to find ways to get there. Can there be IP on the patent and the simplified tax system at the same time?
Combination Order
Suppose an entrepreneur is a taxpayer of the simplified tax system and within one calendar year he switched to an individual tax system for a separate type of entrepreneurial activity. That is, he combines two tax special regimes at once. Then, according to the explanation of the Ministry of Finance of Russia, at the end of the tax period, he undertakes to submit a declaration of “simplification” to the IFTS, in which profitability is determined without taking into account the profit from entrepreneurial activity in respect of which the SPE is applied.
The following should also be considered. Businessmen use the simplified tax system with the object of taxation in the form of income, which is reduced by the amount of expenses and SPE. In this case, the amount of minimum taxation is calculated only from profits derived from entrepreneurial activities in respect of which a simplified system was used. Profitability from entrepreneurship, in relation to which the SPE was applied, is not taken into account in this situation.
Headcount
Another important condition limiting the use of a combination of STS and PPS is the number of employees whom the employer has the right to attract:
- A Simplist has the right to hire no more than one hundred people within the tax period.
- Patent entrepreneurs are not entitled to manage more than fifteen employees.
- The businessman himself is not included in the number of registered employees, among other things, they do not consider employees who are on the decree at the time of registration.
For both special regimes, the calendar year is recognized as the tax period, but it happens that patents are issued not for annual, but for shorter periods. Therefore, the combination in such situations reduces the tax period to the point at which the patent is issued.
Hence it is worth concluding that at a certain time, a different number of employees is available to entrepreneurs. Therefore, their accounting by type of activity where a combined tax system is used, must be kept separately. For a business that is taxed on the simplified tax system, there should be no more than a hundred personnel per year, and in the field of activity for which a patent is obtained, this number should not exceed 15 people.