Each entrepreneur, when starting his own business, must decide which tax regime he will use during his work. Attractive for many business lines is considered the simplified tax system. It can be used by both IP and companies. The simplified tax system is regulated by Art. 346 of the Tax Code, therefore, any businessman must figure out under what conditions this regime can be used, how to switch to it, how the tax is calculated, when to file a declaration, and what other nuances should be taken into account so that the law is not violated.
The concept of the simplified tax system
This system is represented by a simplified mode for calculating tax. This suggests that entrepreneurs and companies are exempted from the need to calculate and pay numerous taxes, as they are replaced by a single fee.
The basic rules for applying and calculating tax under this regime are contained in Art. 346 of the Tax Code of the Russian Federation. A simplified taxation system is considered easy to apply, so entrepreneurs usually do not need to use the services of professional accountants.
By using this mode, the time and effort spent on calculating taxes and preparing reports is minimized. Other features of the USN include the following:
- basic taxes are replaced by a single fee;
- no need to pay personal income tax to entrepreneurs, and companies - income tax ;
- no need to pay VAT if the company does not export goods;
- property tax is not calculated if the cadastral value is not defined for objects.
A simplified taxation system under the Tax Code of the Russian Federation is considered beneficial for every entrepreneur. But companies and entrepreneurs can use it only if certain conditions are met. Compliance must be checked before submitting a transition notice. If during operation the operating conditions of the company change, this will become the basis for the transition to OSNO in automatic mode.
Who can use the system?
The use of USN is allowed only when certain conditions are taken into account. If during the work they are violated, then the transition to OSNO automatically occurs. The use of a simplified taxation system is permitted under the conditions of:
- income during the year is less than 150 million rubles;
- the company should employ no more than 100 people;
- the price of fixed assets is less than 150 million rubles;
- if other companies participate in the company, then their share should not exceed 25%.
Until 2017, it was allowed to work under this regime with annual income of up to 60 million rubles, but now this figure has been significantly increased.
Who can’t apply the regime?
There are certain organizations that, even when meeting the above requirements, cannot use this system. The use of a simplified tax system is prohibited for such enterprises:
- companies with open branches;
- banks and insurance companies;
- PFs that are non-state;
- investment funds;
- firms participating in the securities market;
- budgetary institutions;
- pawnshops;
- firms and entrepreneurs specializing in the manufacture of excisable goods or the extraction and sale of minerals (common minerals are an exception);
- enterprises organizing gambling;
- companies and entrepreneurs working at the Unified Social-Industrial Taxes;
- private practitioners, including notaries or lawyers;
- firms participating in a production sharing agreement;
- companies in which other enterprises participate, whose share exceeds 25%;
- firms with more than 100 employees;
- enterprises with an OS value of over 100 million rubles;
- foreign firms;
- firms earning income per year that exceeds 150 million rubles.
- enterprises that meet all the requirements of the simplified tax system, but at the same time they did not file a transition application in a timely manner.
Until 2016, this list included representative offices, but now they can use the simplified tax system.
Types of USN
When choosing a simplified system, entrepreneurs decide on their own which variety will be applied. The simplified tax system is presented in two forms:
- "Income" at which the rate of 6% applies.
- “Income minus expenses”, according to which 15% is calculated from profit.
Regional authorities are vested with the right to reduce these indicators to 1%, if the “Income” option is used, and if the “Income minus expenses” system is used, then the rate can be reduced to 5%.
During the transition to this regime, entrepreneurs indicate in a statement which option they will use.
Benefits of using the mode
The use of STS has many indisputable advantages. In connection with the application of the simplified taxation system, entrepreneurs and organizations take advantage of:
- other significant taxes are replaced by a single tax, which include VAT, personal income tax and property tax, but the exception will be the situation if a cadastral value has been established for a particular property, so it will have to pay property tax;
- accounting is greatly simplified, since it is only necessary to maintain KUDiR and annually submit a declaration, so often there is simply no need for the services of a professional accountant, since the entrepreneur himself easily copes with this task;
- Individual entrepreneurs can reduce the tax on insurance premiums in the amount of 100% if there are no officially employed workers, and if there are hired specialists, then the fee will be reduced by 50% from insurance transfers;
- reduced payment to the Federal Tax Service for the trade fee;
- if an entrepreneur immediately switches to the simplified tax system upon initial registration, he can take advantage of special tax holidays, so he can work at a rate of 0% for two years.
Especially attractive for every entrepreneur is a plus, which allows not to pay a fee for two years of work. This allows you to effectively develop a new company.
Mode disadvantages
The transition to the simplified tax system has not only positive aspects, but also some significant disadvantages. The simplified tax system in 2018 is characterized by disadvantages:
- it is impossible to employ more than 100 hired specialists;
- it is impossible to switch to a regime for an enterprise engaged in the production of excisable goods;
- notify of the transition to the regime must be timely, given the provisions of Art. 346.13 Tax Code;
- it is impossible to combine the simplified tax system with the unified agricultural tax;
- people who conduct private practice cannot use the regime;
- companies and individual entrepreneurs may unexpectedly lose their right to use this regime, for example, if, based on the results of one transaction, it turns out that the annual income has exceeded 150 million rubles, that is why the company will automatically be transferred to OSNO;
- the absence of VAT leads to the fact that many counterparties are forced to refuse to cooperate, as they will not be able to file a tax refund application with the Federal Tax Service;
- if there are losses according to the results of work, then when leaving this regime it will not work in the new period to count losses;
- if cash operations are performed, then it is necessary to purchase cash registers;
- it is difficult to determine expenses when determining the tax base, and there are also certain restrictions, so some costs cannot reduce income;
- it is impossible to use property or social deductions for an entrepreneur.
Therefore, before using this mode, you need to evaluate all its pros and cons. A simplified tax system is considered an excellent choice for beginners.
The nuances of LLC on the USN
It is allowed to apply this mode not only to entrepreneurs, but also to companies. The simplified taxation system under the Tax Code of the Russian Federation can be used by firms subject to the rules:
- the transition is allowed from the moment of registration of the company within 30 days after registration or from the beginning of the new year, and the FTS should be notified of the transition until December 31;
- of the intention to work under this regime, it is required to draw up and transmit to the Federal Tax Service a corresponding notice;
- if the deadlines for submitting a notice are violated, then it will not be possible to use the system;
- LLCs using USN can use the same accounting methods as with OSNO.
The remaining requirements and conditions are the same for both companies and individual entrepreneurs. A simplified tax system for LLCs is usually chosen by new companies on the market, since there is no information about what the approximate size of income and expenses will be.
Rules for switching to mode
All entrepreneurs planning to start their own business should think in advance about which system they will use to calculate taxes. It is important to notify the FTS in advance that a simplified tax system will be applied. The tax period for this system is equal to the calendar year, so the transition is allowed only from the beginning of next year.
Initially, when registering a company or individual entrepreneur, you can immediately send a notification of the transition with documents for registration.
If before the end of this year, the entrepreneur is not able to notify the Federal Tax Service that next year it is planned to work on the simplified tax system, then it will be impossible to use this mode. Before filing a notice, make sure that the company is fully compliant with the requirements of the regime.
Tax Calculation Rules
The tax period for this regime is one year, but the quarter is considered the reporting one. If a simplified taxation system is used, then the tax is calculated on an accrual basis from the beginning of the year. Therefore, during the year it is required to transfer 3 advance payments for the 1st quarter, six months and 9 months. The remaining amount is transferred next year, net of advance payments. At the same time, a declaration is submitted.
To simplify the calculations, you can use online calculators or invite qualified specialists.
Calculation of tax under the simplified tax system "Revenues"
It is advisable to use this type of regime with a high margin on goods or services. The simplified taxation system “Revenues” involves the collection of 6% of all cash receipts for a specific period of time. The resulting value may be reduced by entrepreneurs:
- if an individual entrepreneur does not have officially employed workers, then the tax on all insurance premiums is reduced;
- if there are employees in the company, then advance payments are reduced by 50% of insurance premiums for the entrepreneur and employees.
If the entrepreneur hires a specialist during the year, even on a temporary basis, then he loses the right to reduce the tax by 100% throughout the year, regardless of the period during which the employee will work in the company.
To reduce advance payments, it is required to transfer insurance premiums in the same quarter. Tax calculation involves the use of the formula:
Advance payment amount = tax base (cash receipts for the quarter) * 6% - insurance premiums - past advance payments (not used in the calculation for the first quarter).
The calculation is considered simple, since it is enough to have proof of all the company's income for a quarter or another period. Therefore, the simplified tax system "Income" is used most often by entrepreneurs.
Tax calculation for the simplified tax system “Revenues minus expenses”
This type of mode is considered quite complicated. This is due to the fact that it is important to confirm all expenses with official documents, and you also need to know which expenses can be used to determine the tax base.
The simplified tax system "Income - expenses" also implies the need to make advance payments for each quarter of work. The calculation process takes into account certain nuances:
- from all cash receipts for a particular quarter, it is necessary to subtract expenses for the same period of time;
- expenses can include insurance premiums for the entrepreneur and employees;
- when calculating the payment for the year, it is allowed to add losses for the previous year to expenses;
- the tax base received is multiplied by 15%, but in some regions the percentage of local authorities may decrease to 5%;
- Advance payments already listed are deducted from the received annual value.
Thus, calculating the tax on a simplified taxation system is quite easy for the businessman himself. For this, the standard formula is used:
Advance payment amount = (tax base (income minus official expenses) * 15%) - past advance payments for one year.
When calculating the annual fee, you can subtract the loss of the previous year.
If the margin on goods and services is low, then this simplified tax system is usually used. The costs used in the calculation process should be confirmed by official documents, and they should also relate to the core business of the company or individual entrepreneur.
Terms of payment
When using the simplified tax system, quarterly advance payments are required, so at least 3 payments are made per year. In the new year, the final fee is calculated.
Funds must be transferred before the 25th day of the month following the last month of the quarter, but for the year, the entrepreneurs pay the last payment until April 30, and enterprises - until April 1.
Is loss tax payable?
Often, entrepreneurs are faced with the fact that their activities do not bring any positive result. In this case, you still have to pay the minimum tax.
Therefore, if according to the results of the year the company has a loss, then it is required to pay 1% of all officially confirmed incomes of the enterprise. In this case, the minimum tax is paid. The loss may be included in the expenses of the next 10 years, and if it is not completely covered, then it will be canceled.
Rules for submitting a declaration
Entrepreneurs and firms at the STS must not only correctly calculate and pay the fee in a timely manner, but also generate reports. A simplified tax system declaration is prepared only once a year.
The document is submitted by entrepreneurs before April 30 of next year, and by companies until April 1.
If the last day falls on a holiday or day off, then it is postponed to the next working day. Declaration form of the simplified taxation system can be downloaded on the website of the Federal Tax Service or taken in paper form at the office of this service. You can fill out a document on a computer, and you can also print a form and enter data manually.
When filling out the declaration, all income and expenses related to the STS activity are taken into account. Difficulties may arise if this regime is combined with other tax systems, therefore, separate accounting is required.
What additional reports are needed?
In addition to the declaration, individual entrepreneurs and companies need to conduct KUDiR, presented by the book of expenses and income. When it is formed and maintained, the rules are taken into account:
- since 2013 it is not required to certify a document with the Federal Tax Service;
- Individual entrepreneurs should not form other reports, but companies must additionally keep accounting, therefore a balance sheet and numerous other reports on income and expenses, property and movement of funds are compiled.
During tax audits, information from KUDiR is especially carefully studied.
Cash discipline
Enterprises that accept, store or issue cash, thus performing various cash transactions, are required to strictly observe cash discipline.
Since 2017, it is necessary to install equipment for using the online ticket office.
Rules for combining STS with other systems
STS can be used for almost all types of activity subject to certain conditions.
Combining this mode is allowed exclusively with PSN or UTII. Under other conditions, you will have to choose either OSNO or USCH. When combining modes, it is important to distribute income and expenses for different systems. Usually there is no difficulty with this process when it comes to cash receipts. Expenses to be attributed to any system is difficult enough.
But there are always costs that cannot be attributed only to the simplified tax system or another regime. For example, salary, and in this case, such expenses are divided in proportion to income. Often, the entrepreneur himself is engaged in accounting. A simplified tax system is considered simple in terms of reporting, so there is no need to hire a professional accountant.
How are entrepreneurs deregistered?
The process can be performed based on the application of the entrepreneur or automatically. If in the process the company does not meet the requirements of the simplified tax system, for example, the revenue has exceeded 150 million rubles, then automatically the switch to OSSO occurs.
If the entrepreneur himself decides on the need to change the regime, then he must submit an application to the Federal Tax Service on the transition to another system. It is necessary to compile the document in duplicate, and it is submitted within 15 days after the transition to the new regime.
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Thus, the simplified tax system is a demanded tax system. It can be used by many entrepreneurs and companies. For this, certain conditions must be satisfied. Entrepreneurs should understand how to switch to the system, how the tax is calculated, how the declaration is formed and submitted, as well as what other nuances should be taken into account for successful work. If tax is not paid in a timely manner and reporting is handed over, this will result in very high fines.