Any entrepreneur starting a business can choose their own tax system. For this, the requirements of local authorities, the direction of activity and the planned income from work are taken into account. The UTII system is considered an ideal choice for beginner businessmen who prefer to work in the field of providing services to the public or retail. When using this mode, numerous fees are replaced with one type of tax. It is considered simple to calculate, and also does not change over time. It is not affected by the amount of income received.
System Nuances
All novice entrepreneurs must understand the different tax regimes that are allowed to use in the selected business area. How does the UTII system work? The main features of the regime include:
- the calculation of the fee is based on a special physical indicator, estimated return and regional ratios;
- the amount of tax remains unchanged if the physical indicator does not change;
- you will have to pay the fee on a quarterly basis;
- Once a quarter, a declaration is submitted to the Federal Tax Service;
- the physical indicator may be the size of the retail space or the number of seats in passenger transport.
The tax on this regime is considered easy to calculate, so often entrepreneurs decide to independently engage in settlements and filling out a declaration. This saves a significant amount of money on hiring an accountant.
What taxes are being replaced?
The UTII system offers entrepreneurs the opportunity to pay only one fee. It replaces other types of taxes, which include:
- income tax and personal income tax;
- tax on property used in the process of doing business;
- VAT.
Using this system has both pros and cons. Most often, representatives of small and medium-sized businesses choose USN and UTII. Using these regimes, it is possible to significantly reduce the tax burden, as well as simplify the accounting of enterprises.
The pros of the regime
The main advantages of the system include:
- UTII taxation system can be applied by both individual entrepreneurs and companies;
- the accounting process is greatly simplified, since even the entrepreneur himself can fill out a declaration;
- the amount of tax paid to the budget does not in any way depend on the profit received, therefore, with significant income, the entrepreneur can pay a small amount of funds;
- It is replaced by a single collection of several taxes that are difficult to calculate, which additionally ensures a reduction in the tax burden;
- if the entrepreneur does not conduct business during one quarter, then tax can be calculated only on the basis of the actually worked period of time.
Due to such advantages, many entrepreneurs who are new or experienced businessmen prefer to draw up the UTII.
System flaws
Although UTII has many undeniable advantages, some of the disadvantages of this regime are highlighted. These include:
- if firms or individual entrepreneurs work with companies that apply VAT, it will not work to reduce costs by returning VAT;
- there are numerous requirements for individual entrepreneurs and companies that wish to switch to this mode;
- a fixed amount of tax is considered not only a plus, but also a minus, because if an entrepreneur does not have income from activities, he will still have to transfer the amount of funds to the Federal Tax Service;
- it is necessary to register directly at the place chosen for conducting activities.
Such shortcomings lead to the fact that not all entrepreneurs can take advantage of the simplified regime.
Who can go over?
Before applying for the transition to this mode, you should study the OKVED codes that fall under UTII. Only in this case it is possible to understand in which field of activity you can work in order to switch to this taxation system. The main payers of this tax are enterprises operating in the field of trade, rendering services to the public or passenger transportation.
You cannot use the mode under the following conditions:
- the company is large, therefore, receives a significant profit from the activity;
- the company employs more than 100 people for one year;
- the entrepreneur specializes in the provision of catering, education, medicine or social security services;
- in the company more than 25% of the authorized capital belongs to other enterprises;
- the transition to UTII of companies that specialize in leasing refueling is not allowed;
- trade is carried out in the premises, the area of which exceeds 150 sq. m
Therefore, before starting work, you should evaluate the possibility of using the UTII system for tax calculation.
How to go?
Since 2013, the transition to this regime can be carried out by each entrepreneur on a voluntary basis. The system can only be used if the selected field of activity meets the requirements of the regime. Transition is possible in the following situations:
- if only LLC or IE is registered, then it is necessary to submit an application for transition to this mode within 5 days after registration;
- if the entrepreneur works under the OSNO, then the transition to UTII is allowed at any time;
- if an individual entrepreneur works under other regimes, for example, according to PSN or USN, the transition is allowed only from the beginning of the year, therefore, until January 15, it is necessary to send the corresponding notification to the Federal Tax Service.
Violation of these requirements may lead to the fact that the entrepreneur will be held liable. If he does not notify the Federal Tax Service in a timely manner about the transition to a simplified regime, then he will have to calculate a lot of taxes on the basis of the basic tax liability.
When is the right to use UTII lost?
Each entrepreneur must understand the UTII system and the procedure for its application. In some situations, firms and individual entrepreneurs may lose their right to use this system. This is possible in the following cases:
- the company ceases to work on activities that comply with this regime;
- violated the basic condition for work on UTII;
- in the region, a decision is made to abandon this regime.
If firms or individual entrepreneurs for various reasons lose their right to use the UTII system, then they must submit a notification to the Federal Tax Service within 5 days, on the basis of which the taxpayer is deregistered.
Main activities
The UTII taxation system for LLC is only suitable if the company selects the appropriate activities for work. The same requirement applies to individual entrepreneurs. Most often, the mode is used in the following situations:
- the provision of domestic services;
- rental of car parking;
- car storage in a paid parking lot;
- passenger and freight transportation, but the company should not be registered more than 20 vehicles;
- retail, but the trading floor in size cannot be more than 150 square meters. m;
- repair, maintenance or car wash;
- trade without a trading floor;
- the provision of veterinary services;
- sale of goods using non-stationary outlets;
- the provision of housing for temporary use, but the area of the premises can not be more than 500 square meters. m;
- distribution of advertising using various structures or vehicles;
- renting out a plot of land where a trade organization or a food service establishment will be located.
A complete list of activities can be studied in Art. 346.26 Tax Code.
Work rules
STS and UTII are considered the most popular taxation systems. If the entrepreneur chooses the imputed tax, then they take into account the rules of activity:
- firms and individual entrepreneurs can independently create their own unique accounting policies;
- during the calculation, the basic profitability calculated for each type of activity is taken into account, and a special physical indicator is also taken into account;
- the entrepreneur must necessarily keep a cash book;
- allowed to combine UTII with other modes.
The most commonly used combination of a common system and UTII. In this case, the company for a certain area of work can calculate the VAT in cooperation with the main contractors.
When is it profitable to use the system?
The UTII tax system has many important advantages for each entrepreneur or company manager. But not always using this mode is beneficial. It is advisable to use it only in the following situations:
- the entrepreneur’s activity is profitable, therefore his profit is growing regularly, but the tax remains unchanged, which allows to obtain significant net profit;
- a small business is opened, therefore, it is not required to engage in complex accounting and the preparation of specific and numerous reports;
- for beginning entrepreneurs, the choice of such a system is considered optimal, since at first they can independently engage in tax calculation, as well as the preparation of declarations, which will reduce the cost of labor of a professional accountant.
But before applying to the Federal Tax Service for the transition to this regime, you should make sure that the planned activity will really be profitable. This is due to the fact that even if there is a loss, you will have to pay the correctly calculated tax, since it does not depend on the profit received. Therefore, at first, entrepreneurs usually work on the basis of the OSNO. The transition from the general system to UTII can be performed at any time of the year, therefore, after obtaining the optimal profit, you can use the simplified mode.
Tax Payment Rules
Before moving to UTII, every entrepreneur must understand the rules of reporting and tax calculation. Most often used in retail UTII. The rules for the payment of imputed tax include:
- the tax period is a quarter;
- funds are paid until the 20th day of the month following the end of the quarter;
- additionally every three months it is required to submit a declaration on this regime to the Federal Tax Service;
- if the day represented by the deadline for transferring the fee is a weekend or a holiday, the payment deadline is advanced one business day.
If delays are detected, even within one day, the entrepreneur will have to pay a fine and penalties. Therefore, businessmen must responsibly approach their responsibilities for the timely transfer of taxes.
The nuances of the preparation and submission of the declaration
Filling out the UTII declaration is considered a simple and quick process. Therefore, the procedure is often implemented directly by the entrepreneur. The following information is entered into this document:
- information about the entrepreneur;
- date of formation of documentation;
- size of basic profitability;
- coefficients set by local authorities in each region;
- tax calculation;
- the direct amount of the fee payable on time.
Filling in the UTII declaration can be carried out using special programs issued directly by the Federal Tax Service. In such programs, it is enough to just enter the necessary information about the physical indicator, basic profitability and regional ratios, so that an automatic calculation is made. After that, the main lines in the declaration are filled in by the program.
With the help of such a program, you can easily print a finished declaration or submit it electronically. At UTII reporting is simple and quick to complete. Ready-made documentation is submitted by the 20th day of the month following the end of the quarter. If the reporting is not submitted to the department of the Federal Tax Service within the established time, this is the basis for the calculation of a fine and a penalty.
How is it calculated?
Tax calculation is based on a special formula. It contains information on what characteristics the chosen field of activity has. For example, if UTII is used for retail trade, it is necessary to use the size of the trading floor as a physical indicator.
During the calculation, the following formula is used:
tax amount = (basic business profitability * K1 (correction factor) * K2 (local coefficient established by the regional administration) * physical indicator of the business / number of days in a month * actual number of days in a month during which the entrepreneur worked in the chosen direction * tax rate .
The tax rate is standard 15%, but local authorities in each region can reduce this indicator if necessary. Calculation of the fee can be carried out independently or using special calculators.
Is it possible to reduce the size of the fee?
Any entrepreneur wants to reduce the tax burden in different ways in order to pay a smaller amount. When using UTII, you can use some tricks to reduce the tax paid. These include the following methods:
- if the entrepreneur works without attracting employees, then the tax base for imputed tax can be reduced by 100% of the paid contributions to the Pension Fund and other funds;
- if there is at least one employed employee for whom the entrepreneur pays funds to the Pension Fund and other funds, then the tax base can be reduced only by 50% of the listed contributions.
There are many illegal ways in which unscrupulous businessmen reduce the amount of tax. All of them violate the requirements of the law, therefore, when identifying such actions, entrepreneurs are held accountable. Not only a significant fine is applied as a punishment, but also a suspension of activity. When sheltering income on an especially large scale, even imprisonment may be provided.
Activity risks
When choosing UTII, an entrepreneur must prepare for some risks. These include:
- Even if the activity does not bring any income, it will not be possible to submit a zero return, therefore, in any case, you will have to pay a fixed amount of tax to the budget.
- If the conditions change during the work process, so the IP will not be able to use UTII, then it will be necessary to switch to OSNO or STS within 5 days after violation of the terms of use of UTII.
- If you select an activity that does not correspond to this regime, it will not be possible to use the system, but if the entrepreneur submits UTII declarations and pays the imputed tax, then upon detection of such a violation, employees of the Federal Tax Service will recalculate, therefore, additional taxes must be paid to the Federal Tax Service under the basic tax assessment.
The use of this regime should be carried out by each entrepreneur with extreme caution so as not to encounter the negative consequences of using UTII.
How does UTII work stop?
Each entrepreneur can apply this tax system on a voluntary basis. If a decision is made to switch to another regime, then for this it is necessary to submit the necessary application to the department of the Federal Tax Service in a timely manner.
Organizations submit an application in the form of UTII-3 to the tax service, but the SPs make an application in the form of UTII-4. Documentation is transferred within 5 days after the termination of work on UTII. If this requirement is violated, the leadership of the Federal Tax Service may decide on the need to recalculate tax for the entire period of the entrepreneur’s work under the simplified regime.
Conclusion
An affordable and interesting tax regime is considered to be UTII. This system can be used by both entrepreneurs and various organizations. To use the regime, certain requirements and conditions must be met. A single tax replaces several types of fees, which significantly reduces the tax burden and simplifies accounting.
Entrepreneurs should understand how the size of the fee is calculated correctly and how it can be reduced. In addition to paying tax, it is required to submit a declaration on a quarterly basis to the FTS department in the prescribed form. Only with competent accounting, you can avoid the calculation of fines and penalties.