Choosing the right tax system is one of the tasks of a manager in an enterprise. For private entrepreneurs this is especially important since it allows you to plan and save future expenses. Let us consider in more detail the special tax regime of the simplified tax system and the rate system.
Tax base for entrepreneurs on the simplified tax system
The simplified tax system, or “simplified”, as it is called in the everyday life of accountants and lawyers, suggests the choice of a tax base from two options:
- the base is the income for the period;
- the basis is the difference between income for the period and expenses.
The betting system has differences, depending on the selected calculation method. For the revenue system, the rate is 6%, and for "income reduced by expenses" - 15%. In this case, income refers to all cash receipts, both cash and non-cash. The terms "profit" and "income" are not identical.
Moreover, in certain regions, special conditions may be established at the rates of a simplified tax system. For example, for certain categories of entrepreneurs, rates can be reduced to 5%. Before choosing a tax regime and base, it should be clarified whether your region has special incentives for a certain type of activity.
In the Altai Territory, for example, since 2017, rates have been reduced to 3% for the income tax system for enterprises engaged in scientific research, and up to 7.5% for the income-expense system for enterprises engaged in food production in the region.
How to calculate the tax on the simplified tax on income?
Suppose that A. Ivanov, after registering as an entrepreneur, switched over to the simplified tax system and the “6% income” system was selected from the rate system. The reporting period for the simplified tax system is a year, but tax should be paid quarterly. To calculate the required tax amount in the 1st quarter of IE Ivanov A. A. should use the data from the income column of the Book of accounting for income and expenses of the entrepreneur (KUDiR).
If income for the I quarter amounted to 337 thousand rubles, then the tax amount is calculated by multiplying the rate of 6% by the amount of income received:
Tax = 337 thousand rubles. x 6% = 20 220 rubles.
That is, an advance payment on the simplified tax system for the I quarter for A. Ivanov IE will be 20 220 rubles. If the individual entrepreneur does not have employees, and the entrepreneur makes insurance contributions to the funds for himself, then the amount of tax can be reduced by the amount of contributions. If an individual entrepreneur has employees, then the amount of taxes for the period can also be reduced, however, by no more than 50% of the amount originally calculated.
How to calculate the tax amount of the simplified tax system with expenses?
Suppose that IP Petrov P.P. is registered as a payer of the simplified tax system. We will calculate according to the system of rates “income reduced by expenses 15%”. Please note that the amount of expenses is also taken from KUDiR, however there is one remark. Expenses for which the amount of income for the period is reduced must be confirmed by the primary documentation and payment orders. The type of confirmation depends on the type of payments - cash or non-cash.
If the income for the first quarter from P.P. Petrov P.I. amounted to 437 thousand rubles, and confirmed expenses - 126 thousand rubles, then with a rate of 15% the tax amount will be calculated as follows:
Tax = (437 - 126 thousand rubles) x 15% = 311 thousand rubles. x 15% = 46,650 rubles.
Thus, the advance payment for transfer to the tax on the simplified tax system “income reduced by expenses at the rate of 15%” is 46 650 rubles.
What to choose a base for the calculation of tax on the simplified tax system?
When writing an application for the transition to a “simplified system”, an entrepreneur will need to indicate the necessary system of rates, that is, the tax base with which the calculation will be made. For new entrepreneurs, this can be a problem.
Choosing an effective system will help preliminary preparation of a business plan and marketing plan with analytics of the movement of funds in future periods. Obviously, with small monthly expenses, which will be less than 30% of the amount of income, it will be unprofitable to choose the “income reduced by 15%” system.
After compiling the planned list of income and expenses for the year ahead, a double calculation of the rate system should be carried out. Make a table in Excel and calculate quarterly the amount of taxes on the "income system 6%" and "income reduced by expenses 15%". Compare the annual tax burden on the two systems and make a choice. Remember that the entrepreneur has the right to change the selected taxation regime before the end of December 2018, while the new regime will be applied from the beginning of 2019.
Conclusion
The tax rates of the simplified tax system vary depending on the tax base chosen. So, an individual entrepreneur can pay income tax only, or choose for the base the difference between income and confirmed expenses. In the first case, the simplified tax rate will be 6%, and in the second - 15%.
To calculate quarterly advance payments and annual obligations, data from KUDiR are used, taking into account non-cash and cash transactions. At the same time, expenses must necessarily be confirmed by the primary documentation and payment orders of the bank, otherwise expense transactions will not be accepted as tax for calculating the amount of tax for the period.