What tax system to choose? We offer an overview of tax systems operating on the territory of the Russian Federation.
For each individual business a certain type of taxes has different financial influence and provides different opportunities. Tax systems operating on the territory of the Russian Federation:
- General taxation system (founded);
- Simplified tax system (USN);
- Single Tax on imputed income (imputed);
- patent system of taxation;
- Single Agricultural Tax (ESHN).
The list of all taxes, payers of which may be a legal entity or individual entrepreneur, is established by articles 13, 14 and 15 of the tax code of the Russian Federation. This article offers an overview of each tax system in force in the Russian Federation.
General taxation System (founded)
The general system of taxation (based) is the traditional and the most complex system of taxation, which includes payment of the full list of taxes (income tax, VAT, etc.) and accounting in full. If at registration of business in tax not to submit any applications, the organization or FE automatically become payers.
The general system of taxation assumes payment of the following type of taxes: 1) VAT – 18% (the basic rate acting in most cases). There are also discount rates: VAT – 10%, in the sale of some food and children's goods, medicines and printed editions; VAT – 0%, preferential rate is applied at export of goods; 2). Income tax – 20%; 3). Property tax-2.2%; 4). Tax (from employee's income) – 13%; 5). Insurance contributions from wages (30% – 2013): in RPF (22%), ffoms (5.1%), FSS (2.9%); 6). Local taxes: Land tax, transport tax, negative impact on the environment and others.
The main disadvantages are:
- The need to maintain accounting records;
- Full and complex taxation of business;
- The primary documentation shall be kept for at least 4 calendar years;
- The tax authorities are more careful to check the organizations based on it, because of the complexity of the bookkeeping. Easier to identify errors.
When it is advantageous to apply the following for entrepreneurs and legal entities:
- If the business is related to the export of goods, i.e. foreign economic activity, as the customs always takes into account VAT;
- If the business involves big money turnover. Since there are no restrictions on profit, staff, size of retail space, etc.;
- If the majority of clients (counterparties) are VAT payers. In this case, customers paying you for goods or services can reduce the tax payable to the budget for the amount of VAT.
P.S.: It is not expedient for an entrepreneur or a food kiosk to apply the same.
Simplified tax system (USN)
The simplified Taxation System (USN) is a voluntary tax regime. USN is one of the most "humane" tax regimes used by most small organizations and entrepreneurs. This system of taxation exempts a legal entity or FE from the payment of such taxes as VAT, property tax, income tax.
On USN There are two objects of taxation, which are IP or legal entity. Individual choose: 1). Income – 6%. Under this regime, the taxpayer pays 6% of the proceeds from the sale of goods or services.
2). Income reduced by the cost-15%. Under this regime, the taxpayer pays 15% of the profits from the sale of goods or services.
For each individual organization (IP) The object of taxation will be advantageous (6% from proceeds or 15% from profit). The choice of the object of taxation, as mentioned above is voluntary.
The basic criteria of transition to the simplified system of Taxation: 1). The amount of income of the Organization for the last 9 months did not exceed 45 mln. Rubles.; 2). The number of employees of the Organization for the tax period did not exceed 100 persons; 3). The residual value of the fixed assets and intangibles of the organization does not exceed 100 million rubles. This criterion does not apply to IP; 4). At the moment of organization's transition to USN, the share of participation of third parties is no more than 25% (item 3 of art. 346.12 NC); 5). The transition to USN is possible from the beginning of the year, after submission of the application to the tax authority during the period from October 1 to November 30 of the previous year. If the legal entity or IP is created for the first time, then they have 5 days to write an application for USN, otherwise they are waiting for the establishment.
- Reduced tax burden on business. There is no need to pay VAT, income tax, property tax;
- Simplified accounting procedures;
- Simplified reporting to the Tax inspectorate.
- There is a possibility of loss of the right to use USN. In this case it is necessary to pay tax on profit and accrued interest;
- The absence of the obligation to pay VAT is also a minus, as it significantly reduces the number of customers-VAT payers (who can not make a deduction if they work with you);
- In case of loss of the right to USN it is necessary to restore all accounting documents for the whole period of work on simplified system;
- There is no possibility to engage in certain kinds of activity, to open branches and representative offices, to engage in foreign economic activity.
Patent system of taxation
Since 2013, the patent system of taxation has replaced the simplified system of taxation on the basis of patent and has acquired the status of independent regimes. The transition to a patent is voluntary and can be combined with other tax regimes. The patent is issued by the tax authority to an individual entrepreneur at the place of its registration and operates in the territory of that subject of the Russian Federation, which is specified in the patent.
The patent is received for a period of 1 to 12 months (and no more). In this case, the entrepreneur is exempt from the payment of such taxes as tax, VAT, tax on the property of individuals. The tax rate under the patent is set at the rate of 6%. The amount of tax payable is calculated by multiplying the tax rate (6%) To the tax base (potentially possible income by type of activity) in accordance with the provisions of 346.51 tax code of the Russian Federation.
The tax code provides for 47 activities under which the patent system of taxation operates. These are activities such as hairdressing services, housing repairs, transportation services, retail trade, etc. Only individual entrepreneurs can apply the patent system, with the average number of employees, for the tax period, not exceeding 15 people, and the proceeds within the calendar year should not be more than 60 mln. Rub.
Advantages of the patent system of taxation:
- Tax declaration in the application of the patent system of taxation is not submitted to the tax authorities;
- The entrepreneur may refuse to use the register;
- The cost of a patent does not depend on the final results of the entrepreneur's business (in some cases it is a minus).
Disadvantages of the patent system of taxation:
- There is no possibility to reduce the tax on the amount of paid insurance premiums;
- The period of validity of the patent is not more than 1 year, and the time limit for obtaining a patent is limited;
- Patent systems can only be used by IP.
Single Tax on imputed income
The single tax on imputed income (imputed) is a special tax regime. The principal difference of this system from the rest is that the base of taxation is determined not by the taxpayer's reporting, but on the basis of income from different types of activities. This tax is put into effect by normative legal acts of municipal entities and in regions where such acts are not accepted, imputed cannot be applied.
This system of taxation is regulated by ch. 26.3 of the tax code of the Russian Federation. Since 2013, imputed is not a mandatory tax regime, that is, the entrepreneur can choose whether he needs imputed, or you can choose another system, such as USN or patent.
The main meaning of imputed and the principle of calculation is as follows. For a certain type of activity the state determines the size of potential possible income – the so-called imputed income. This income is a taxable base. The amount of real income of an organization or an IP in the application of imputed does not affect the amount of tax payable. The monthly tax depends on the value of the natural physical index, characterizing one or another type of activity, and is calculated according to the following formula:
HP = Basic yield x physical index x K1 x K2, where:
K1 is an adjustment factor that takes into account inflation. Established by the federal authorities (in 2013, K1 = 1.569);
K2 is an adjustment factor taking into account the peculiarities of conducting activities in the territory of the subject of the Russian Federation. Established by municipal education. In this case K2 can not be more than a unit, less-please. That is, in some cases local authorities at their discretion can reduce the amount of tax on a certain type of activity.
The tax on imputed income is calculated quarterly according to the formula: imputed = 15% x WA x 3
For a particular type of activity the tax Code establishes its physical index and basic profitability. For example, for the provision of services physical indicator is the number of employees. It is established that each employee in a month brings 7500 rubles-this is the basic profitability. For retail trade, the physical figure is 1 kv. M Square of the trading hall, and it is established that it brings monthly 1800 rubles of income.
In applying imputed taxpayer is exempt from the following taxes:
- Corporate income tax (for IP-tax);
- Property tax;
- VAT – Except for the tax payable when importing goods into the territory of the Russian Federation.
- The tax code establishes limits of physical indicators in which it is impossible to apply imputed. For example, in retail trade for the application of imputed the area of the trading hall should not be more than 150 sq. m.;
- The organization or FE is obliged to get into tax accounting in the area where the activity is directly carried out;
- Since the imputed tax is subject to a specific type of activity, in the exercise of the organization or IP of different activities, in particular, which are not subject to imputed, the company or entrepreneur arises a situation of combining different tax regimes . In fact, the company can simultaneously apply both imputed and USN (or the same), which implies the segregation of income and expenditure and the payment of all taxes in the USN and the framework. In some cases, this paragraph is a plus.
- Simplified accounting system and reduced tax burden on business;
- A fixed amount of tax payments is a big plus when getting a big profit by an organization or a PI.
- Since 2013, IP at imputed have the right to reduce the tax on the amount of paid for themselves (IP) contributions to RPF and ffoms;
- In the presence of employees, the imputed tax can be reduced by the amount of the insurance premiums on voluntary health insurance of employees.
Single Agricultural Tax
The single Agricultural tax (ESHN) is a tax system for agricultural producers. Taxpayers of ESHN include individuals who carry out entrepreneurial activities without the formation of a legal entity (individual entrepreneurs and farms), as well as organizations-producers of agricultural products, According to the provisions of chapter 26.1 of the tax code of the Russian Federation have written an application for ESHN payment in accordance with the procedure established by law.
When applying eshn, the taxpayer is exempt from the payment of income tax, VAT, property tax and tax (for IP only). The tax base at ESHN is defined as: income minus expenses multiplied on the rate of 6%. In this respect, Eshn is one of the most advantageous tax regimes.
Conditions of transition to ESHN:
- Organizations and PiS produce, process and implement agricultural;
- The share of income from sale of agricultural products (including products of primary processing of raw materials of own production) in the total volume of proceeds from sale of production makes not less than 70%;
- Organizations or entrepreneurs planning to move to Eshn in the following year, wrote an application for the transition to payment eshn until December 31 of the current year.
If an organization or an individual entrepreneur pays imputed for one or more types of activity, they are entitled to move to Eshn for other activities. At the same time, the share of income from the sale of agricultural products, which can be switched to ESHN, is determined based on the total income from the sale of goods (products, works, services) for all types of activities, including imputed.