The question of what taxes are paid by an individual entrepreneur certainly worries all people who want to do business. Indeed, information should be collected in advance, before the start of a direct business, because the size of payments will significantly affect financial activities. The article describes in detail what taxes are levied on individual entrepreneurs, how to calculate them and with what frequency to pay.
Is there any need to pay?
It's no secret that many entrepreneurial businessmen are trying in every possible way to evade taxes or reduce their tax base. It is worthwhile to clarify: the payment of IP taxes is an obligation, and liability is foreseen for its failure to comply. Moreover, the amount of fines today is set quite high, and often they are many times higher than the amount of non-payment. Therefore, taxes must be paid on time and in full.
Who performs the calculation of IP taxes?
The fact is that the entrepreneur himself must calculate the amount payable. Because of this, difficulties arise. Not all business owners know what taxes an individual entrepreneur should pay and how to calculate them. As a result, in practice it often turns out that the calculation is wrong, and the wrong amount is paid to the budget. Moreover, if you overpay, then there is nothing to worry about - you will be returned excessively paid money or sent to offset future taxes. But the underpayment threatens with penalties, and in this case no one cares, especially you underpaid the tax or ignorance. Incorrect calculation facts, as a rule, are revealed during inspections carried out by the tax inspectorate regarding reports submitted by entrepreneurs.
Tax regimes
To answer the question of what taxes an individual entrepreneur must pay, you need to know which system he uses. Now for small businesses, the tax regimes are: DOS (general regime), UTII (single tax), STS (simplified regime), PSN (patent system). Each mode provides its own rules for calculating and tax rates for individual entrepreneurs.
General taxation system
If the entrepreneur did not choose a special tax regime during registration , it is considered that he is applying DOS. In practice, businessmen choose such a tax system very rarely, almost never, because there is a need to pay VAT (rates are 18, 10, 0 percent). You should also pay personal income tax (rate - 13 percent). In the absence of activity , value added taxes and income of individuals do not need to be paid.
A single tax on imputed income
Previously, the application of this tax to entrepreneurs engaged in certain activities was mandatory. Starting January 1, 2013, the transition to UTII is voluntary, that is, the businessman decides whether to use this system or another. It is not possible to say unequivocally which tax is more profitable for entrepreneurs. It is necessary to consider each specific case separately.
So, UTII pay not from the profit actually earned, but from the imputed (possible) income, calculated taking into account the conditions affecting its receipt. That is, the payment amount is not affected, the entrepreneur’s activity is profitable or unprofitable. The tax base is the value of imputed income, depending on the type of activity. Businessmen using UTII do not pay taxes on profits, property, income of individuals and value added. If the activity is not carried out, the entrepreneur must still pay UTII, because this taxation system uses a possible rather than actual income to calculate the payment amount.
How to calculate UTII
To determine the amount of tax the formula is used:
UTII = Physical indicator x DB x K1 x K2 x 15%
Physical indicators are established by the Tax Code separately for each type of activity and may include the number of employees, transport units, and floor space.
DB is the basic profitability. It varies by type of activity; specific monthly amounts are also specified in the Tax Code. It should be borne in mind that for UTII the quarter is the tax period , so the resulting value must still be multiplied by three months.
K1 - deflator, annually established by the Ministry of Economic Development of Russia. In 2014, it is 1,672.
K2 - corrector (regional), annually established by representative local authorities. It is different in each region, but varies between 0.005-1.
UTII calculation example
Suppose you live in Rostov-on-Don and are the owner of a small store where food is sold at retail. The area of the trade hall is twelve square meters. According to the Tax Code of the Russian Federation, the basic profitability for activities such as retailing through the objects of the trading network amounts to 1800 rubles a month, and the physical indicator is the area (in sq. M.) Of the trading floor. The regional corrector for Rostov-on-Don was established by the City Duma and is 1. We calculate the tax amount for the 1st quarter of 2014:
12 sq. m. x 1800 rubles x 1.672 x 1 x 3 months x 15% = 16251.84 rubles - you need to pay this amount.
Simplified tax system
This mode is perhaps the most popular. The fact is that VAT does not pay individual entrepreneurs on the "simplified tax system". What taxes do not yet have to be paid with such a system? You will be spared from paying property tax and personal income, and if no activity is carried out, then simplified taxes should not be transferred. An important feature: only those entrepreneurs whose revenue per year is not more than 64.02 million rubles can use the simplified tax system. Businessmen who decide to switch to a simplified regime from 2015 should have income for the first nine months of 2014 in the amount of not more than 48.015 million rubles
The taxpayer must independently select the object of taxation. There are two options:
- The tax base is income. In this case, the rate is 6 percent.
- The tax base is income minus expenses. The rate is 15 percent.
Taxation procedure under the simplified tax system
The entrepreneur must pay monthly salary taxes (taxes on employee earnings, which will be discussed below), advance payments on a quarterly basis (until the 25th day of the reporting month), and annual tax at the end of the year (until April 30). The deflator for 2014 under the simplified regime is 1.067.
If in 2013 you had no income, then a loss has formed, the amount of which can be reduced at the end of 2014, the tax base. This applies to annual tax, not quarterly payments. If the loss is greater than the tax base, it can be carried forward to the next periods for ten years.
The minimum tax for the simplified tax system
You should know what taxes an individual entrepreneur should pay if expenses exceed incomes equal to or equal to them, as well as if the tax amount calculated in the usual way is less than the minimum (the minimum tax is calculated by the formula: annual income x 1%). We will analyze this situation with a specific example.
Suppose you earned 100 thousand rubles in 2013 and expenses 95 thousand rubles. You apply the object of taxation: income minus expenses. That is, the tax base will be 5 thousand rubles. Multiplying it by a rate of 15 percent, we get the amount of tax - 750 rubles. We calculate the minimum tax: 100 thousand rubles, multiply by 1 percent. We get 1 thousand rubles. Compare the results. It turned out that the minimum tax is more than that calculated in the usual manner. What taxes do individuals pay to the budget in this case? You will have to pay a minimum tax, i.e. 1000 rubles. And you can include the difference between 1000 rubles and 750 rubles in 2014 expenses.
Calculation of advance payments in the simplified tax system
At the end of the quarter, the amount of income actually received from the beginning of the year should be determined. If the object of income is used minus expenses, it is also necessary to determine the amount of expenses and subtract it from the value of income. The resulting figure must be multiplied by the applicable rate: 6 or 15 percent, respectively. From the total amount, the amount of paid insurance premiums (we will talk about them later) and paid sick leave employees should be taken away. Similar payments already paid from the beginning of the year are also deducted from the amount of the quarterly advance.
Patent system
Now we will tell you about the taxes paid by entrepreneurs who bought a patent for entrepreneurship. First, a businessman must pay one third of its value within 25 days after the patent has begun to operate, and the remaining two thirds - no later than 30 days before the tax period ends. Such terms are valid if the patent is issued for a period of six months, otherwise, the whole amount must be paid in full within 25 days from the start of the action. As with the simplified regime, it is possible to use the patent system until the income for the year exceeds 64.02 million rubles.
The cost of a patent should be determined by the formula: base yield multiplied by 6 percent. The size of the database, as with UTII, depends on the type of activity. The owner of the patent is exempt from paying taxes on property, profit, value added, and income of individuals. If the activity is not conducted, the cost of the patent must still be paid.
Insurance premiums and payroll taxes
You have already learned what taxes are paid by the individual entrepreneur. All of the above payments, the entrepreneur must make, regardless of the presence or absence of employees. But insurance premiums and payroll taxes are paid based on the number of employees. These include contributions to the Pension Fund - 22 percent of accrued salaries; to the medical fund - 5.1 percent; in the Social Insurance Fund - 2.9 percent (for temporary disability insurance, including in connection with motherhood) and 0.2 percent for insurance against occupational diseases and accidents). The size of the last installment may be larger (depending on the type of activity of the entrepreneur).
Also, a businessman must pay contributions to himself to the Pension Fund (in 2014, the amount is 17328, 48 rubles) and to medical insurance (in 2014 - 3399.05 rubles). The total amount of payments, therefore, will be equal to 20727.53 rubles. It can be paid at one time or in installments until 12/31/2014.
2014 innovation
The innovation was an additional contribution to the pension fund, paid in the amount of 1 percent of revenue, if it is more than three hundred thousand rubles. This amount should be transferred to the budget no later than April 1 of the year following the reporting year.
Entrepreneurs who do not have employees using the single tax or simplified regime at a rate of 6 percent can reduce the tax for the entire amount of contributions following the results of the year. Those businessmen who have employees and apply the same tax regimes can reduce the tax on the amount of contributions, but only by no more than fifty percent of the tax for the year. When using the simplified regime at a rate of 15 percent, pension contributions are considered ordinary expenses, as in the general regime.