Russian entrepreneurs can use different systems for calculating taxes. Interested tax is considered imputed income tax. What is UTII? It is represented by the tax regime, on the basis of which tax is paid by individual entrepreneurs. When calculating it, physical performance indicators are taken into account , as well as potential income from a specific job. In addition, coefficients are applied that are set separately for each region.
System concept
To understand what UTII is, you should carefully study the features of this tax regime. These include:
- use of this system is allowed only in a limited number of regions, so entrepreneurs should first clarify the possibility of imputed tax;
- the main factor affecting the size of the tax is a physical indicator of activity, which can be represented by the size of the room, the number of seats for passengers in public transport, or other elements;
- the regime applies exclusively to a limited number of areas of activity;
- it is not taken into account during the calculation exactly what amount of funds the entrepreneur receives from the activity;
- it is impossible to draw up a zero declaration under this regime, therefore, regardless of the availability of income or loss, the businessman has to pay an unchanged amount of funds;
- the correction factor is set independently by the regions, which takes into account the economic condition of the industry and the market, as well as other factors;
- payments under this regime are paid quarterly, and also every three months there is a need to submit a declaration.
Until 2013, all entrepreneurs falling under this regime should have been forced to work on it. But now IPs themselves choose the optimal system. Having understood what a single tax on imputed income is, many entrepreneurs voluntarily switch to it due to the presence of numerous advantages.
When can I use the mode?
UTII is valid only for certain areas of activity. Therefore, entrepreneurs before choosing this system should find out the answers to several questions:
- whether the system is allowed in a specific region where the IP plans its activities;
- whether the selected direction of work is suitable for the mode;
- whether it is planned to employ more than 100 people.
Experienced businessmen assure that it is advisable to use UTII for entrepreneurs whose physical indicator is low. For example, the size of the trading floor does not exceed 15 square meters. m. or there is a small number of employees. Under such conditions, the tax amount will be low. At high rates, it is advisable to use the simplified tax system.
Also, it is not always appropriate to apply imputed income when opening a new business. This is due to the fact that the entrepreneur cannot be sure of making high profits. If there are losses, you will still have to pay constant payments to the budget.
What types of activities are suitable for UTII?
Selecting this mode is allowed only when working in a limited number of directions. All areas of activity are listed in Art. 346.29 Tax Code. These include:
- household services provided to the population, and this includes hairdressing, cleaning or mending clothes;
- veterinary services;
- the establishment of catering establishments;
- rental housing;
- transportation of people or goods;
- advertising on vehicles or other objects.
A significant condition for the transition to this mode is the work in the above areas of activity. UTII - what is it? This tax system was originally created for small businesses, so it has many undeniable advantages for entrepreneurs.
What other conditions are considered?
To switch to this mode, it is important not only to choose the current direction of work, but also to meet other significant requirements. These include:
- for a year of work, an entrepreneur cannot have more than 100 officially employed employees;
- if the direction of work associated with trade is chosen, then the size of the premises cannot exceed 150 sq. m., and only the size of the showroom is taken into account, therefore, the area of the warehouse or utility room is not included;
- the value of assets owned by the entrepreneur may not exceed 150 million rubles;
- An entrepreneur cannot belong to the largest taxpayers.
In each region, different requirements for businessmen may additionally increase.
What are the fees paid?
When using UTII tax, the taxpayer is exempt from transferring numerous fees to the budget. Therefore, this system does not need to calculate and pay taxes:
- property tax;
- Personal income tax or income tax;
- VAT.
At the same time, the entrepreneur is not exempted from insurance premiums for himself and his employees. If he uses IP cars to carry out activities, then they additionally pay transport tax.
Mode Benefits
Having understood what UTII is and what features this regime has, many entrepreneurs decide to work on this system. This is due to significant advantages:
- only one tax is paid;
- the payment size does not change over time if the physical indicator of activity remains unchanged;
- the profit received by the entrepreneur from work is not taken into account, and often it is significant, therefore payments to the Federal Tax Service are low for a successful individual entrepreneur;
- the inspection is required to submit tax returns on a quarterly basis, which are easy to fill out, so often businessmen themselves are engaged in accounting, without hiring an experienced accountant.
UTII for IP has not only advantages. The disadvantages include the fact that if at the beginning of the work the entrepreneur receives low income or even faces losses, it still will not work to reduce the amount of payment, so the tax burden will be significant. Also, in many regions, authorities decide to impose a ban on the use of this regime.
How is tax calculated?
To calculate the amount that you want to transfer to the budget, the standard formula is used:
Tax amount = estimated profitability * physical indicator * deflator coefficient * regional coefficient * tax rate.
Each indicator has its own nuances:
- multiplying the estimated return by a physical indicator results in imputed income;
- the deflator coefficient is set by the Ministry of Economic Development annually on the basis of the growth rate of prices for various goods;
- regional coefficients are calculated by local authorities, which takes into account the economic condition of the region and other important criteria;
- The tax rate varies from 7.5 to 15 percent, and it is the authorities of the region who decide on its size.
Having understood what UTII is and how the tax is calculated, each entrepreneur will be able to independently carry out calculations and prepare a declaration without difficulties.
When is tax paid and a tax return submitted?
It is required to transfer the fee on a quarterly basis, and also once every three months the UTII declaration is submitted to the Federal Tax Service.
Tax is paid until the 25th day of the month following the end of the quarter. The declaration must be transmitted to tax officials before the 20th day of this month.
Calculation Example
Calculating the UTII tax is quite simple, if you know exactly the different values. For example, an entrepreneur sells non-food items. For this, a stationary store is used, the size of which is 45 square meters. m. For calculation, the following indicators are used:
- The basic profitability for this area of work is 1800 rubles. per month;
- the physical indicator is represented by the area of the trading premises, therefore equal to 45 square meters. m .;
- deflator coefficient is equal to 1,798;
- the regional coefficient should be recognized in the local branch of the Federal Tax Service, but approximately it is equal to 1;
- the rate is set at a maximum of 15%.
Using these indicators, you can get the size of the collection:
1800 * 45 * 1.798 * 1 * 0.15 = 21845.7 rubles. per month.
For the quarter, the amount of the fee is: 21845.7 * 3 = 65537.1 rubles.
Such a tax is considered quite high, so often the activities of UTII are considered not too profitable. If the physical indicator is significant, then it is advisable to use the simplified tax system.
Reporting Rules
The UTII declaration is submitted quarterly to the Federal Tax Service. This must be done before the 20th day of the month following the end of the quarter.
There are several ways to submit a correctly prepared document:
- in electronic form, for which you can use the website of the Federal Tax Service or use the capabilities of electronic document management operators;
- in paper form, for which the entrepreneur must personally bring the document to the department of the Federal Tax Service.
If the second option is used, then it is advisable to immediately make two copies of the document so that the service employee puts a mark on acceptance on the second declaration. This serves as proof that the puffiness was indeed delivered on time to the inspection.
It is allowed that a paper declaration be handed over by a proxy, but he must have a power of attorney certified by a notary public.
Conclusion
It’s enough just to figure out what it is - UTII. This mode has many advantages for an entrepreneur, although it has some disadvantages.
The legislation clearly establishes what types of activities can be carried out according to UTII. Therefore, a limited number of businessmen can use the system. In this case, it is important to understand how the tax is calculated and paid correctly. Declarations should be submitted quarterly, as the absence of payments and reports is an administrative offense.