Russian law provides a real opportunity to refund part of the tax paid to an individual entrepreneur. But often businessmen either do not know about this possibility at all, or do not have enough information on how it can be implemented.
Can an individual entrepreneur receive a tax deduction, what kind of privileges are provided for by Russian legislation, and what are the conditions for applying for them? These and other issues will be discussed in this article.
The concept of tax deduction
This is a certain amount of money that reduces the tax base. Simply put, this is the legal right of all individuals. individuals and individual entrepreneurs of Russia to reduce the amount of accrued income tax. But in order to be able to draw them up, certain conditions must be complied with, provided for by current legal norms. Of great importance is the tax system that the businessman uses.
Lack of right to use deduction
It is worth noting that not all entrepreneurs can take advantage of this benefit. Only those who pay tax at a rate of 13% have the right to apply. That is, individuals using the simplified taxation system (STS) and the single imputed income tax (UTII) do not fall into this group. Entrepreneurs using the single agricultural tax (ENH) cannot apply for a personal income tax deduction. The use of a patent also excludes the application of this tax preference.
Thus, the legislation does not allow the use of deductions for entrepreneurs working on various simplified taxation systems. However, if an individual entrepreneur combines his activities with activities as an employee, then in the second case, he has the right to reduce the tax base of personal income tax.
The tax deduction for an IP employee is made in accordance with applicable law as for an individual. This rule applies if a person is officially registered and personal income tax is paid on his income.
Types of tax deductions
The main codified legal act of the tax legislation of the Tax Code of the Russian Federation provides for the following types:
1. Standard (preferential categories of citizens can use them), as well as deductions for children. The following size differentiation is provided:
- 500 rub - the status of the Hero of the USSR;
- 1400 rub. - for the first and second child, adopted or born;
- 3000 rub - for a third child, for disabled WWII and liquidators of the Chernobyl accident;
- 6000-12000 rub. - for parents and guardians whose children study in schools and other educational institutions.
2. Social. This is an opportunity to return the money spent on education (children or your own), donations, insurance and pension contributions. In addition, the social deduction allows you to reduce the personal income tax base by the amount of funds spent on medical services.
So, if a taxpayer is studying at a university (regardless of the form of study), then he can take advantage of the privilege in question. The following points are important:
- the presence of a contract with an educational institution in the name of a taxpayer;
- availability of a document confirming the fact of payment for training.
The maximum return amount is 120,000 rubles.
A taxpayer can also receive refunds for full-time tuition for children. In this case, compliance with the same conditions is required. But it is important that the child should only study full-time. The maximum amount to be returned is 50,000 rubles. per student.
There is also the possibility of reducing the tax base on personal income tax and for treatment, both your own and for the treatment of children, parents or spouses. Documents are needed - facts of payment for services in medical institutions, medicines, as well as health insurance contributions.
The deduction amount cannot be more than 120,000 rubles.
3. Property. Provided for transactions with property, including the purchase and construction of real estate. An IP can apply for a tax deduction when buying an apartment as an individual. The main thing is that he has an income from which 13% is deducted in the form of tax. The maximum amount of return does not exceed 260 thousand rubles. The maximum value of real estate with which you can get a tax refund is 2 million rubles. When registering an apartment for a mortgage, this size increases to 3 million rubles.
A businessman can also receive a tax refund for an apartment if it was purchased for the purpose of further use in his professional activities. This is evidenced by the clarification of the Ministry of Finance No. 03-11-11 / 21776.
4. Professional. That is, the tax deduction for individual entrepreneurs for expenses incurred in the relevant activities. To use this type of benefit, documents confirming expenses are necessary: invoices, checks, contracts, etc. If it is not possible to provide such financial evidence, an individual entrepreneur can use a professional deduction in the amount of 20% of the total amount of income received from activities .
5. Investment. Tax deductions for entrepreneurs investing in long-term projects. To receive, the following conditions must be met:
- profit from securities;
- opening and depositing funds to an individual investment account, as well as receiving income from funds placed on this account.
Refund on the purchase of an online cash register
A separate point is to highlight a relatively new type of privilege, which Russian entrepreneurs can use from 01.01.2018. Unlike the types presented above, such a tax deduction is available for entrepreneurs using UTII, USN, including patents.
The maximum limit amount that reduces the tax base is equal to 18,000 rubles. (on one cash desk). In this case, the following requirements are mandatory. Cashbox:
- should be included in the official register of the Federal Tax Service;
- must be registered.
Required documents
The set of documents for obtaining a standard tax deduction for an individual entrepreneur may vary depending on which category of citizens a businessman belongs to, as well as what type of benefits he plans to receive.
So, to return for the education of children to the competent authorities, you will need to provide:
- birth certificate, adoption of a child;
- document on state registration of marriage;
- a certificate from an educational institution stating that the person is studying full-time;
- an agreement with a state educational institution;
- financial documents confirming payment;
- 3-income tax return.
In order to use the property deduction, an individual entrepreneur must provide the following package of documents:
- TIN;
- passport;
- 3-personal income tax return;
- extract from the Unified state. register of individual entrepreneurs;
- certificate 2-personal income tax;
- certificate of registration of the taxpayer;
- an agreement confirming the transfer of ownership of the property;
- document confirming the costs incurred.
To receive a professional tax deduction for an individual entrepreneur, a completed 3-NDFL form is required, as well as a report confirming the expenses incurred.
Making an investment return:
- declaration in the form of 3-personal income tax;
- 2-personal income tax;
- document confirming the opening of the investment account and the amount of funds deposited into it.
How to get a tax deduction?
In accordance with the Tax Code of the Russian Federation, the return period is one month from the date of receipt of the application by the competent authority. But with regard to the timing of income tax refunds, they are not provided for in the code. In practice, the period for a refund is beyond one month.
After the tax authority has received a full package of documents from the applicant, the audit begins. On it, in accordance with the law, three months are allotted. During this period, the inspection decides on the possibility or impossibility of a tax deduction for individual entrepreneurs.
After a positive decision is made, the funds are credited to the account, the details of which are indicated in the application.
Where to go?
To apply for a personal income tax deduction, an entrepreneur must contact the tax office at the place of registration. There, an application for deduction is filled out and the entire necessary package of documents is provided.
In addition, at the moment, it is possible to apply through State services and multifunctional centers.
The deadline for applying for the return of personal income tax
To submit documents, there is no need to wait for the deadline for submitting a tax return, since this can be done at any time. But the main thing is no later than three years from the date of payment of the tax, which the taxpayer intends to return.
Conclusion
Thus, if an individual entrepreneur does not use USN, UTII, or a patent, then he has a real opportunity to receive a rather large number of tax preferences. This is a kind of state compensation to business for the fact that the taxpayer pays several types of taxes at once. The Tax Code of the Russian Federation provides real opportunities to reduce the tax burden, but not everyone takes this chance because of the low level of financial literacy.
A tax deduction for an individual entrepreneur on USN, UTII or when using a patent is also possible only in limited cases, or if a person has other income from which he pays 13%.