To select a specific tax regime, you need to familiarize yourself with each one in detail and understand which tax system is most beneficial for an individual entrepreneur.
Simplified system
This system is known as the simplified tax system, it represents a
special taxation regime that is the most profitable for doing business. When in this mode, business entities do not need to provide the tax authorities with a balance sheet and a statement of losses and profits. Moreover, such a taxation system for entrepreneurs assumes the absence of payment of income
tax, property tax and VAT.
Modern legislation involves the use of two types of "simplified":
- payment of 5-15% of the amount of income received, reduced by the amount of expenses (the percentage varies depending on the region);
- Payment of 6% of the amount of income.
Another kind of simplified system is the agricultural tax. This
system of taxation for entrepreneurs is similar to the simplified tax system, but only for agricultural enterprises and with the application of appropriate benefits. In this case, the tax base is the income to be reduced by the amount of expenses. The rate in this mode is 6%. And the transfer of insurance premiums for employees is less.
The choice of taxation system for individual entrepreneurs is largely dependent on current tax laws. So, there is another simplified mode - patenting, used only by IP. It is applied only on the basis of a decision of local legislation on specific activities. A patent is valid only on the territory of the subjects where it was acquired.
General system
This system can be attributed to the most difficult tax regime. It is used by those IEs who, upon registration, did not submit an application to switch to “simplified”. The general taxation system for individual entrepreneurs of certain types of activity should be used without fail.
The specified regime provides for registration as a payer of property tax, VAT and personal income tax. Also, all necessary reporting should be submitted to the controlling tax authorities.
What is the tax system for IP
A common system can only be justified for those IPs that import goods into Russia. The same can be said if the business entity has a sufficient number of counterparties - VAT payers.
Applying the general taxation system, an entrepreneur pays personal income tax on total income (from the results of all its activities), as well as on those income from which this tax was not paid. For the tax base are income reduced by various deductions of a professional, property and social nature.
The so-called UTII can be used depending on the region. If it is allowed in a particular area, you can work, otherwise it is forbidden.
Entrepreneurs need to remember that it is impossible to combine a common and simplified tax system. It is possible to combine only STS and UTII, as well as UTII and the common system.