STS is a popular tax regime related to simplified systems. It can be used by entrepreneurs or companies. But at the same time, there are some limitations of the STS, which businessmen should be aware of. Therefore, not always different enterprises or individual entrepreneurs can use this mode. It is important to take into account the chosen direction of work, income received, cash limit and other nuances.
The concept of limits on the simplified tax system
The limitations of the STS are represented by different indicators, on the basis of which entrepreneurs can use this mode to conduct activities. Based on these restrictions, businessmen and companies are selected that can use the simplified mode for calculating and paying taxes.
Limits are regularly changed and adjusted, not only by federal authorities, but also by regional ones. Therefore, before applying for the transition to this mode, it is important to make sure that the selected area of work is suitable for this system.
Legislative regulation
All restrictions on the use of STS are fixed at the legislative level. Many information is contained in numerous articles of the Tax Code. Entrepreneurs should focus on the following regulations:
- ch. 26.2 of the Tax Code contains the rules on the basis of which the transition to the simplified tax system is carried out, and also describes how income and expenses for this regime are calculated correctly;
- Federal Law No. 401 indicates the limits on the income and value of the company's assets at which it is allowed to use STS during operation;
- Order of the Ministry of Economic Development No. 698 contains data on which coefficient should be used for tax calculation;
- Federal Law No. 248 includes codes on the basis of which the applicable types of activities within the simplified tax system are classified.
Additionally, the content of numerous letters of the Ministry of Finance is taken into account.
What taxes are paid?
Many entrepreneurs and companies want to use the simplified mode during work, as it has many advantages. The main advantage is the ability to not pay numerous taxes. Therefore, a single tax on the STS replaces the following types of fees:
- income tax;
- collection from the property of a company or individual entrepreneur;
- UST;
- VAT.
But at the same time, business executives still have to pay insurance premiums and tax for the use of water bodies. Additionally, an ad fee is listed.
Who can't use it?
The limitations of the STS should be studied by each entrepreneur planning to use this regime for doing business. When choosing this system, it is taken into account how much the company receives for the year of work, how many hired specialists work in the organization, and also what is the cost of the fixed assets used. The following companies cannot use USN:
- not meeting the requirements for the number of employees, revenue or the price of assets;
- with branches;
- contained in Art. 346.12 Tax Code.
It will not be possible to use simplified regimes for banking organizations or pawnshops, as well as companies involved in the sale or purchase of securities, selling excisable goods or specializing in mining. The use of the simplified tax system for lawyers or notaries is not allowed.
System benefits
Using STS has many advantages for entrepreneurs and firms. The main advantages include:
- taxpayers choose whether they will be charged 6% of revenue or 15% of net profit;
- a single tax replaces numerous types of fees;
- many regions independently lower rates by 1% as a measure of support for small business;
- it is not required to deal with complex accounting, therefore it is enough to just file a declaration on a simplified tax system annually;
- the amount of tax is reduced due to the paid insurance premiums.
Thanks to the above positive parameters, many entrepreneurs wish to use the simplified tax system during operation. But for this, restrictions on the transition of the simplified tax system are taken into account, since if they are used, if you still use this simplified regime, then this will certainly lead to certain problems with the tax office.
What are the limits?
The restrictions for IP on STS are the same as the requirements for companies. The main such limits include:
- the number of employees for one year of work should not exceed 100 people;
- the residual value of assets used during the implementation of entrepreneurial activity should not be more than 150 million rubles;
- the amount of revenue for the year of work should not exceed 150 million rubles.
The above restrictions are the same throughout Russia. Regions may even slightly tighten these requirements. Since 2017, the deflator coefficient used in the calculation of the collection has been 1.481. In 2017, a moratorium was introduced on its increase until 2020.
Profit Limits
The limitation of the simplified tax system for revenue is considered a significant moment for each large company that wants to use the simplified mode for calculating tax. This limit is 150 million rubles. in year. This requirement applies to each company or entrepreneur.
The STS revenue limit is constantly monitored by tax officials. If there is an excess of the set value by at least 1 ruble, then this leads to an automatic transition of the company to OSNO. If the company continues to calculate taxes on the simplified tax system, then this will be the basis for bringing the company to administrative responsibility and recalculation of taxes.
Even the indiscretion of a businessman cannot become a reason for avoiding responsibility. Therefore, with the simplified tax system, turnover restrictions should be carefully monitored by entrepreneurs. Violation of this requirement will result in the following penalties:
- for the lack of notification that the company has ceased to use the simplified tax system, 200 rubles is paid;
- on the basis of a declaration under the DOSA 5% of the accrued amount of the fee is paid;
- for the absence of a declaration within the prescribed time period, 1 thousand rubles is paid.
The above fines are minimal, therefore, it is necessary to notify the Federal Tax Service in a timely manner that there have been excesses to the limit on income of the STS.
What profit is taken into account?
There are no requirements or restrictions on expenses in the law. If the company plans to switch to the simplified tax system, then over the past 9 months of operation, its income should not exceed 121 million rubles.
In order to take into account revenue restrictions at the USN IP, it is important to understand what profit is set off. Not all cash receipts of a company or entrepreneur are used to calculate the fee, therefore only the following incomes are taken into account:
- from the sale of products or assets;
- non-operating income represented by revenue not listed in previous periods, as well as rents, income from foreign exchange transactions, interest on deposits or receipt of money from equity participation in other companies.
All of the above cash receipts should be registered in KUDiR. The following types of income are not required to be considered:
- contributions to the authorized capital;
- transfer of real estate as collateral from counterparties;
- contributions intended to increase the compensation fund;
- receiving grants from the state;
- transfer of funds by foreign sponsors;
- fines;
- the difference that appeared after the revaluation of available securities;
- indemnities transferred by insurance companies or other firms based on a court decision;
- winnings.
Therefore, the company's accountant must be well versed in the limitation of the amount under the simplified tax system in order to know which incomes are taken into account for these purposes.
Asset value
STS restrictions apply in addition to the cost of fixed assets available in the company. In 2017, this limit was increased to 150 million rubles.
To identify the possibility of using the simplified mode, the residual value is taken into account. To determine it, it is advisable to contact independent appraisers, who form a special report as a result of their work. A copy of this document is transmitted to the Federal Tax Service.
Limits on the number of employees
Another limitation that entrepreneurs who wish to take advantage of the simplified regime have to deal with is the limited number of hired specialists. It is not allowed that the company employed more than 100 people in one year.
According to the simplified tax system, the limitation on the number of employees is a significant point. It is not the number of workers engaged in labor activities in the company in a particular period of time that is taken into account, but the number of specialists arranged for the calendar year of work. Therefore, at the end of the year, each company must submit to the Federal Tax Service a special certificate on the average number of employees. Based on this document, it is determined whether the company can continue to use the simplified tax system.
Cash Limits
Many enterprises use cash registers during their work. To use the simplified tax system, 6% of the restrictions apply even to the cash register limit. It is installed at the end of any working day.
It is not allowed to use cash if a transaction is concluded for 100 thousand rubles.
Cash limit is calculated easily. To do this, it is enough to add revenue for any period of time, which should not exceed 92 days. The amount received is divided by the number of days in the billing period. This value is multiplied by the number of days when the money is given to the bank, and usually this process is performed once a week. The amount received acts as a cash limit.
How to switch to the simplified tax system?
If the entrepreneur is sure that he is suitable for this regime on the basis of all the requirements, then he can switch to the simplified tax system. The procedure consists in the need to prepare a special application in the form of No. 26.2-1. The following information must be entered into the document:
- name of company or individual entrepreneur;
- BIN or BIN;
- TIN of the entrepreneur;
- activity indicators are displayed confirming that the applicant can really use the simplified tax system;
- The object of taxation is indicated.
If employees of the Federal Tax Service receive information that a certain taxpayer for some parameters does not fit the simplified tax system, then a transition to the basic tax payment system automatically occurs.
Loss of the right to use the simplified tax system
STS is a simplified mode, which can be used only by small companies that meet numerous requirements. Therefore, often large organizations are faced with the fact that for various reasons they lose the right to use this system. For example, their revenue per year may exceed 150 million rubles. Additionally, the number of fixed assets often increases, so their value exceeds 150 million rubles.
Taxpayers themselves must monitor these excesses. Based on this, they submit a notification to the Federal Tax Service that the work on the simplified tax system has been discontinued, so the company switches to OSNO. If the company itself does not perform this process, then the employees of the Federal Tax Service in any case will learn about the excess. This will still lead to the transition to OSNO, but in addition, entrepreneurs are brought to administrative responsibility.
Is it possible to switch to the simplified tax system again?
If a company at a certain point in time has lost the right to use STS due to exceeding the established limits, then it has the opportunity to apply this regime again if the revenue for the year of work is reduced or part of the assets is sold.
You can only re-jump from the new calendar year. For this, a special statement is drawn up, which indicates the results of the enterprise.
Combination with other modes
When using the simplified tax system, entrepreneurs can combine this mode with other systems, which include UTII, OSSO or the patent system. But it is important to consider what incomes and expenses relate to a particular regime.
Often, businessmen deliberately reduce income on the simplified tax system, transferring them to other modes in order to maintain the ability to use this system. Such actions act as tax evasion, therefore, during the inspection, employees of the Federal Tax Service in any case will reveal such violations, so the entrepreneur will be held accountable.
If at all companies hide their assets or income using various fraudulent schemes, then citizens who are in senior positions in such an organization will be prosecuted.
Conclusion
STS is a popular taxation regime that companies or entrepreneurs can use. It has numerous advantages over other systems. But before using it, it’s important to understand the many limitations.
If entrepreneurs during work exceed the established limits, then they are automatically transferred to OSNO. Attempts to conceal income or reduce assets are the basis for bringing the entrepreneur and other company leaders to administrative or criminal liability.