Which individual entrepreneurs are exempt from taxes. The procedure for exempting individual entrepreneurs from paying property tax. Tax holiday regions
In the Unified Register of Small and Medium-Sized Enterprises, as of December 10, 2018, the number of individual entrepreneurs is 3.2 million. At the same time, according to the results of the first quarter of 2018, the number of individual entrepreneurs and individuals declared bankrupt increased by 50% compared to the same period in 2017 of the year. The number of bankruptcies has reached 9,000, according to Fedresurs data.
Perhaps 2013 was the most difficult year for entrepreneurs in recent years. Then fixed insurance premiums, which had to be paid regardless of income, increased sharply. Professional associations announced a massive departure of entrepreneurs into the “shadow”. But already at the beginning of 2014, the situation with contributions changed, and people began to open individual entrepreneurs again. Although in 2015, the increase in the number of individual entrepreneurs did not compensate for the decrease in 2013.
Small businesses entered 2016 under difficult economic conditions. Before this, the authorities talked a lot about the need to reduce the tax burden and measures to support small entrepreneurs. Among the innovations that are expected to make the lives of entrepreneurs easier are tax holidays.
Who and under what conditions can “go” on a tax holiday?
Tax holidays are a period established by law during which first-time registered individual entrepreneurs on the simplified tax system or special tax system can apply zero tax rates established in connection with the adoption of amendments to.
Tax holidays in 2019 will be available to individual entrepreneurs who comply with a number of requirements:
- The individual entrepreneur must be registered for the first time.
- An individual entrepreneur must use one of two taxation systems - simplified taxation system and PSN. If a general taxation system or special regimes are applied, a newly registered entrepreneur can switch to the simplified tax system or special tax system within two years in order to take advantage of the benefit.
- The activities of individual entrepreneurs must be related to the production, social or scientific spheres (subjects can establish types of activities within each sphere at their own discretion, it needs to be clarified).
- The share of services, works or goods subject to a 0% tax rate must be at least 70% of total income.
Tax holidays are valid for no more than two tax periods from the date of registration of an individual entrepreneur. Regions received the right to independently determine specific types of activities that are subject to tax benefits and set restrictions on their use depending on the number of employees and income limits.
It is important to remember that tax holidays apply exclusively to taxes paid under the simplified tax system and special tax system, while they do not exempt entrepreneurs from other taxes (excise taxes, land, transport taxes, etc.). Also, individual entrepreneurs, despite tax holidays, must pay insurance premiums for compulsory pension insurance for themselves and their employees. Please note that at the end of the year you need to submit a report according to the simplified tax system indicating the rate of 0%.
The tax holiday will end on January 1, 2021. So entrepreneurs still have time to take advantage of them and save money.
The individual entrepreneur registered again. Can he take advantage of tax holidays in 2019?
It happens that an entrepreneur ceased operations and deregistered, and then registered again as an individual entrepreneur, after the regional law introducing a zero tax rate came into force. Can he take advantage of the benefit?
Until recently, this issue was controversial. In particular, the Ministry of Finance clearly outlined its position: “A tax rate of 0 percent can be established by the laws of the constituent entities of the Russian Federation only for taxpayers - individual entrepreneurs registered for the first time after the entry into force of the relevant laws of the constituent entities of the Russian Federation, and cannot be applied by individual entrepreneurs who have withdrawn from registration in connection with the termination of activities and newly registered (repeatedly or once again) after the entry into force of the specified laws of the constituent entities of the Russian Federation.”
Judicial practice shows the lack of a uniform approach to resolving disputes related to the use of reduced tax rates by newly registered business entities using the simplified tax system or special tax system. But the Supreme Court put an end to this dispute.
Tax holidays: list of subjects of the Russian Federation
The decision to grant tax holidays, including their duration, is made by regional authorities. In some regions, individual entrepreneurs receive two full preferential years, in others - only one year. Additional restrictions may also be established on the application of a tax rate of 0%, in particular, in the form of a limitation on the average number of employees or the maximum amount of sales income received by an entrepreneur when carrying out a preferential type of activity.
Good afternoon, dear individual entrepreneurs!
Many people open individual entrepreneurs in the hope of receiving the so-called “tax holidays,” which were introduced back in 2015. Someone somewhere heard something =), and then they are terribly surprised when they are denied this benefit.
Let me note right away that the idea of tax holidays is really very good. But, as always, there are many nuances that you need to keep in mind in order to get this tax break.
So, let’s take a brief look at this topic of concern to many in the “Question-Answer” format for 2018-2020. By the way, you can watch my video on this topic, or read the text version below:
1. Who can receive tax holidays in 2018-2020?
It is necessary that the following conditions for individual entrepreneurs be simultaneously met:
- IP in your name must open for the first time. That is, if you close your current individual entrepreneur, and in good faith come for the right benefit, like a newly opened individual entrepreneur, then you will be refused. That is, This benefit applies only to those who register as individual entrepreneurs for the first time. Moreover, no more than two years have passed since the registration of the individual entrepreneur, and the registration itself took place AFTER the entry into force of the REGIONAL law on tax holidays.
- You must work in one of these three areas: industrial, social, scientific.
- Moreover, the share of such activities should be NOT LESS THAN 70% of the total income of the individual entrepreneur.
- In your region a local law must be passed, which allows tax holidays.
Moreover, regional authorities may introduce the following restrictions:
- By number of employees;
- According to the maximum income per year;
- They will prescribe specific activity codes according to OKVED, which are subject to tax holidays.
Thus, an individual entrepreneur who wants to receive a tax holiday must carefully study local laws to understand whether his activities qualify for this benefit or not.
You should also find out from local laws which specific OKVED codes fall under this benefit. They must be clearly defined, since the concepts of scientific, industrial or social sphere can be taken to mean almost any type of entrepreneurial activity =)
All this can be found out at your tax office, where you registered as an individual entrepreneur.
2. Have tax holidays been introduced in all regions of Russia?
No, not in all of them. The fact is that this benefit is left to the discretion of local authorities. And these holidays are not yet in effect in all regions of the Russian Federation. But in Moscow they have already been introduced:
In order for them to be introduced in your region, local authorities must first pass a law (clause 4 of Article 346.20 and clause 3 of Article 346.50 of the Tax Code of the Russian Federation, Federal Law No. 477-FZ of December 29, 2014).
Important: You can count on tax holidays only if you have opened AFTER the entry into force of the relevant REGIONAL law.
Naturally, if an entrepreneur is “tied” to the tax office by registration, then benefits must be expected and claimed in the region where the future individual entrepreneur is registered. And not where he will operate.
How can I find out if there are holidays in my area?
The easiest way is to call the Federal Tax Service hotline.
There is now a toll-free line from the Federal Tax Service, where your questions will be answered:
Which individual entrepreneur taxation systems will be covered by the holiday?
- Individual entrepreneur on the simplified taxation system (Simplified or simplified taxation system)
- Individual entrepreneur on PSN (Patent taxation system)
Other taxation systems are not specified in the law, which means they cannot count on this benefit.
What happens if I go beyond the tax holiday limits?
A reasonable question. Indeed, you will immediately lose this benefit as soon as you violate one of the conditions given above. If an individual entrepreneur loses the right to apply a zero rate, then according to:
In case of violation of restrictions on the application of a tax rate of 0 percent established by this chapter and the law of a constituent entity of the Russian Federation, an individual entrepreneur is considered to have lost the right to apply it and is obliged to pay tax at the tax rates provided for in paragraph 1, 2 or 3 of this article for the tax period in which these restrictions are violated. (Clause 4 introduced by Federal Law dated December 29, 2014 N 477-FZ)
That is, if your benefit is considered invalid, then pay taxes for the entire period when it was declared invalid for you as an individual entrepreneur.
And paragraphs 1,2,3 read verbatim as follows:
1. If the object of taxation is income, the tax rate is set at 6 percent. 2. If the object of taxation is income reduced by the amount of expenses, the tax rate is set at 15 percent. The laws of the constituent entities of the Russian Federation may establish differentiated tax rates ranging from 5 to 15 percent, depending on the categories of taxpayers. (as amended by Federal Law No. 224-FZ of November 26, 2008) 3. By the laws of the Republic of Crimea and the federal city of Sevastopol, the tax rate can be reduced in the territories of the relevant constituent entities of the Russian Federation for all or certain categories of taxpayers. For the periods 2015-2016, the tax rate can be reduced to 0 percent. For the periods 2017 - 2021, the tax rate can be reduced: - to 4 percent if the object of taxation is income; - up to 10 percent if the object of taxation is income reduced by the amount of expenses. At the same time, tax rates cannot be lower than 3 percent and can be differentiated depending on the categories of taxpayers. Tax rates established in accordance with this paragraph by the laws of the Republic of Crimea and the federal city of Sevastopol cannot be increased during the periods specified in this paragraph, starting from the tax period from which the reduced tax rate is applied. (Clause 3 introduced by Federal Law dated November 29, 2014 N 379-FZ)
How long will the holidays last?
From January 1, 2015 to December 31, 2020. That is, you can count on another three years of this benefit. To be precise, they will be in effect in 2018, 2019 and 2020. But for a particular individual entrepreneur, tax holidays can last no more than two tax periods from the date of registration as an individual entrepreneur.
Maybe they will be extended after 2020, but at the moment there are no such prerequisites. Stay tuned for blog updates, if anything changes, I will write about it.
What about contributions to the Pension Fund? Do they need to be paid?
Yes need.
It is a big mistake to think that if an individual entrepreneur is on vacation, then there is no need to pay mandatory contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and for your employees). Need to.
Let me emphasize once again that this is a tax benefit under the simplified tax system (or PSN). And contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund do not apply to taxes.
Do you need to submit reports?
Necessarily. Even if you have zero reporting, you need to submit it. And I repeat once again that tax holidays for individual entrepreneurs do not mean that reporting can be completely ignored.
Pay all contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and your employees), submit reports. Everything is as usual.
How do you even get this benefit? Do I need to write some kind of statement?
Good question. Since tax holidays are introduced at the regional level, you need to contact your tax office for information on such issues. Let me remind you once again that this is an inspection that is “linked” to the registration address in your passport.
To summarize:
- You should clarify the question of whether tax holidays apply in your region;
- Find out the specific OKVED codes that fall under this benefit;
- Your individual entrepreneur must be on the simplified tax system or PSN;
- You must comply with all restrictions prescribed by law;
- Submit all tax returns, despite the fact that they will be zero.
Well, there may be other nuances that may arise during your work.
P.S. If you have additions to this information, you can write them below.
Other important changes for 2017 for individual entrepreneurs:
Don't forget to subscribe to new articles for individual entrepreneurs!
And you will be the first to know about new laws and important changes:
Dear readers!
A detailed step-by-step guide to opening an individual entrepreneur in 2019 is ready. This e-book is intended primarily for beginners who want to open an individual entrepreneur and work for themselves.
This is what it's called:
"How to open an individual entrepreneur in 2019? Step-by-step instructions for beginners"
From this manual you will learn:
- How to properly prepare documents for opening an individual entrepreneur?
- Selecting OKVED codes for individual entrepreneurs
- Choosing a tax system for individual entrepreneurs (brief overview)
- I will answer many related questions
- Which supervisory authorities need to be notified after opening an individual entrepreneur?
- All examples are for 2019
- And much more!
Dear entrepreneurs!
A new e-book on taxes and insurance contributions for individual entrepreneurs on the simplified tax system of 6% without employees is ready for 2019:
"What taxes and insurance premiums does an individual entrepreneur pay under the simplified tax system of 6% without employees in 2019?"
The book covers:
- Questions about how, how much and when to pay taxes and insurance premiums in 2019?
- Examples for calculating taxes and insurance premiums “for yourself”
- A calendar of payments for taxes and insurance premiums is provided
- Frequent mistakes and answers to many other questions!
Dear readers, a new e-book for individual entrepreneurs is ready for 2019:
"IP on the simplified tax system 6% WITHOUT Income and Employees: What Taxes and Insurance Contributions must be paid in 2019?"
This is an e-book for individual entrepreneurs on the simplified tax system of 6% without employees who have NO income in 2019. Written based on numerous questions from individual entrepreneurs who have zero income and do not know how, where and how much to pay taxes and insurance premiums.
The slowdown in economic growth and falling incomes in the primary industries are forcing people to think about opening their own business. With high loan rates, it is not always easy to start your own business, develop it, and pay tax authorities and contributions to funds.
In these conditions, the government and legislative bodies have launched a mechanism that can provide significant support to young companies.
One of the most effective methods of stimulating business activity is the provision of tax holidays.
The practice of using a popular economic measure has found its application in our country.
What are tax holidays
Tax holidays have certain advantages compared to other instruments used. Taking into account possible reductions in budget revenues, the authorities are actively using this opportunity.
Among the measures to reduce the tax burden are:
- Exemption from certain types of taxes. More often than others they don’t charge.
- Reducing the rate of individual payments for a certain period.
- Using various combinations of these two measures.
For example, the cancellation of an individual payment for 2 years is replaced by a 50% reduction in payment for the subsequent 3-year period.
Providing a grace period allows you to quickly receive an influx of investment into the country and create additional jobs. The selectivity of the incentive measure can be aimed at creating innovative products, or increasing production in a particular area of business, such as agriculture.
Among the possible negative indicators, economists cite possible distortions in pricing, or the use of the grace period as a tool for evading payment of other types of taxes.
Tax Holiday Law 2019
Taxation is regulated on the basis of Federal Law No. 477 - FZ. Changes in the regulatory document concern the establishment of a special regime for certain categories of individual entrepreneurs and small businesses.
Amendments to the Federal Law at the end of 2014 made it possible to introduce tax holidays in certain regions of Russia already in 2015. For the remaining territories, the grace period will begin during 2019.
Administrations of constituent entities inform on their own information resources about the start dates for use and the conditions for applying the provisions of the regulatory document.
For example, if in the Pskov region tax benefits have been applied since 2015, then in the Perm region the decision to apply the Federal Law was made at a meeting of the legislative assembly only on March 19, 2016.
Individual regions are given the right to independently determine incentive measures. This is due to the specifics of the region, the structure of the market, where market revitalization is required in certain areas of business.
General conditions of tax holidays
The selective application that independent regions may make must be consistent with the main provisions of the document.
The application of the legal act from the position of reducing the tax burden provides for the following categories of legal entities:
- individual entrepreneurs (IP) who use a simplified system for paying mandatory contributions in their activities;
- legal entities using .
The business must be registered for the first time after the law comes into force.
When planning to use the provisions of a regulatory document, you should not resort to re-registration or changing the form of organization of the enterprise. It will not be possible to achieve inclusion in the category of preferential business entities.
In the case of applying a preferential system for paying mandatory contributions, the entrepreneur is not exempt from maintaining reporting documentation and submitting it to the tax authority. This applies to both the rate and the rate at 0%.
Find out who may be exempt from taxes in the next three years from the video.
Tax holidays for individual entrepreneurs using the simplified tax system in 2019
Registration of an individual entrepreneur in accordance with the noted conditions does not allow every private business to count on a reduction in established rates. Additional conditions must be met.
The company's field of activity must be in one of the following niches:
- scientific direction;
- social sphere;
- production activity.
The main provisions for determining the direction of the company’s activities are defined as:
- The main field of activity falls into one of the three specified in the Law.
This provision is determined by the profit margin for the priority segment of activity in the amount of at least 70%. - An open branch of business, along with highly efficient production, cannot be considered an object for the application of preferential rates.
To apply a tax rate of 0%, only three types of mandatory deductions are used - on profit, on value added and on property.
It is logical that basic “social” obligations, such as payments to the Pension Fund, Social Insurance Fund, and others, must be paid in full and on time.
Tax holidays for persons on a patent (PSN)
The patent system for paying mandatory payments works successfully in different regions. This is due to the convenience of payment and reducing the likelihood of making mistakes.
The grace period provides similar benefits as in the case of the simplified tax payment system. Payment of transport fees, patents, excise taxes and traditional deductions will be mandatory.
An entrepreneur, before choosing a patent taxation system, should analyze the mechanism of the Federal Law in a particular region. Thus, in the Altai Territory, the possibility of tax holidays concerns specifically the patent system.
And in some regions, only individual entrepreneurs with a simplified system receive benefits:
- Saint Petersburg;
- Primorsky Krai;
- Volgograd region;
- Krasnodar region.
The indicator for small business organizations that took advantage of the grace period does not exceed 10% in certain regions. This is due to the limited scope of business and the start of the current law.
Tax holidays for LLCs 2019
One of the types of ownership of small or medium-sized businesses is Limited Liability Companies. When considering these organizations for the right to receive tax benefits, the right to participate in the Federal program was potentially recognized.
Recent changes to the regulatory document do not allow the use of a “zero” rate on some mandatory payments for. Legislative bodies refer to the lack of an effective mechanism that will allow tracking the re-registration of organizations with this form of ownership.
Benefits for small businesses
To receive a simplified system for making mandatory payments, small businesses must meet a number of mandatory conditions:
- This year, register the company as an individual entrepreneur.
For a specific region, the launch of the mechanism based on the Federal Law should be clarified. - Establish the possibility of paying taxes under a simplified system or through a patent system.
- Fix a minimum share of 70% in case of receiving income from several areas of activity with a predominance of the selected areas - scientific, social or production.
What restrictions can be set?
When using tax holidays, it is not enough to just take advantage of the right to receive a grace period. The owner of the enterprise must also take into account some of the restrictions that are established for program participants.
During the provided period, possible changes in the type of activity must be agreed with local authorities. The grace period is usually set for two years (two tax periods), but the time frame for possible use of the current opportunity is somewhat wider - until 2020.
In some cases, the opportunity to use the benefits provided may be divided into two annual periods, where, if there are no violations in the first year, the program is extended for the next period.
Violations of established rules identified by regulatory authorities lead to deprivation of the right to use established benefits. In this case, the standard rate of mandatory payments will be charged for the entire calendar year in which violations were detected.
The right to establish additional restrictions is granted to local authorities. Taking into account the characteristics of the region, these rules will be specified in a separate regulatory document within the region.
It is known that in a number of subjects of the federation such a limitation is the number of hired workers, the number of similar enterprises in certain areas of activity. You should definitely contact your local authorities in advance and clarify the conditions for including an entrepreneur in the block of tax benefits.
The development of the Federal Law has made it possible to revive small and medium-sized businesses in all regions of Russia.
The number of registered private enterprises meeting the established requirements has increased.
It is possible that the practice of applying current legislation will be adjusted if the first stage is successfully implemented.
Find out about taxes in 2019 from the video.
In contact with
Tax holidays have appeared in our country since 2015.
Their goal was to encourage entrepreneurs to open their own businesses in difficult times of crisis and to bring illegal businessmen out of the shadows.
But this benefit has its own criteria. Who can count on tax holidays, and do they apply to all areas of business?
Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:
(Moscow)
(Saint Petersburg)
It's fast and for free!
Definition of concepts. Legislative regulation of the issue
Tax holidays appeared on January 1, 2015. At the legislative level, this concept was enshrined in Federal Law N 477-FZ. Tax holidays are a period of benefit for entrepreneurs, during which they are exempt from paying taxes.
This system has its advantages and disadvantages.
On the positive side Tax benefits include the following:
Among shortcomings The following programs can be distinguished:
- Restrictions on the categories of entrepreneurs and activities that are eligible to receive tax benefits. For example, businessmen engaged in trade cannot count on benefits.
- Local authorities regulate the provisions for the provision of benefits and prescribe the conditions for compliance.
- The validity period is two calendar years, but in the end it turns out that the entrepreneur enjoys benefits for a shorter period of time.
What areas of business activity does the benefit apply to?
Activities that are eligible for zero tax are strictly regulated by law.
It can be spheres:
- scientific;
- social;
- production.
Which small business entrepreneurs can take advantage of tax deferment?
Tax holidays are granted only to those entrepreneurs who are registered for the first time.
Each registration of an individual entrepreneur is carried out in connection with the businessman’s tax identification number. It is thanks to this that the tax service can easily track whether a person previously had an individual entrepreneur or not. Therefore, an attempt to close the old case and open a new one in order to receive benefits will not succeed.
the federal law did not provide holidays mandatory for all regions. Each subject is given the right to introduce the system on time at its own discretion.
In addition, entrepreneurs who are engaged in trade. For other types of activities, each region compiles its own list.
In order to qualify for tax holidays, the entrepreneur is obliged comply with the following conditions:
- The profit percentage must be at least 70% of income.
- Limits have been established for individual entrepreneurs operating under a simplified system.
- There are restrictions on the number of hired workers.
Which tax regimes are subject to zero tax?
Tax holidays can be applied to businessmen who work as under simplified and patent taxation system.
To apply for a benefit, a businessman, when registering with the tax office, must, on the day of registration apply for a patent. If an entrepreneur decides to work under a simplified system, he is obliged to notify the control authorities about this within a month from the date of registration.
If an individual entrepreneur works under UTII or OSNO, it will not be possible to receive benefits. 
Validity
Tax holidays have been introduced until 2020.
They spread their action in the first two years of work entrepreneurs. The tax period is established in accordance with the Tax Code of the Russian Federation. This means that if an entrepreneur registered in November, then his calendar year will still end on December 31st. Therefore, it is best to start a business at the beginning of the year. This will make it possible to enjoy benefits for much longer.
For entrepreneurs who work according to patent tax system, the benefit is valid for two calendar years. The tax period in this case is the validity period of the patent. If it is less than a year, then the vacation period will end earlier than can be established. This type is unfavorable for patents with a short term.
What payments will you still have to pay?
During tax holidays, entrepreneur not exempt from all taxes. Individual entrepreneurs are not exempt from property duties and payments for each employee. Holidays do not apply to insurance premiums for employees and the entrepreneur himself.
Thus, during the tax holiday period, taxes on UTII, trade tax and property taxes on individuals and legal entities must be paid.
Regional features of provision
Tax holidays for entrepreneurs are in effect differently in different areas. One of the very first regions to adopt the law was the Penza region.
Penza region
If IP in the Penza region works simplified , then his activities should be related to:
At patent system Businessmen who provide repair services for shoes, radio equipment, and clothing will be able to take advantage of the benefit. Each subject establishes its own lists of activities. You can always obtain information about the complete list from the tax office.
Sverdlovsk region
In 2015 Sverdlovsk region joined the entities providing entrepreneurs with zero tax rates.
To this end, two laws were adopted at the local level. 31 types of activities are taxed under simplified taxation and 15 under patent taxation at a rate of 0%.
Moscow and St. Petersburg
IN Moscow The legislative act was adopted on March 25, 2015. To receive benefits, entrepreneurs must meet the following conditions:
- The number of employees should not exceed 15 people.
- Under the simplified system, tax holidays apply to entrepreneurs who work in the following areas: education, healthcare, scientific development, social services. The manufacturing sector includes all those involved in toys, clothing, food, appliances, medical supplies, machinery, and leather goods.
- For the patent taxation system, the following types of activities are distinguished: repairing, sewing and painting shoes, repairing leather, fur, repairing household appliances at home, childcare, translations, printing activities, excursions.
Tax benefits for individual entrepreneurs in the city St. Petersburg started operating in 2016. For entrepreneurs, there is a maximum revenue limit of 30 million rubles. For those who work under a simplified taxation system, benefits apply in the following areas:
For the patent system, the list of activities is the same as in Moscow, but the production of dairy products and bread baking is also added.
Stavropol region
Authorities Stavropol Territory do not establish additional requirements for entrepreneurs.
At the level of local legislation, a list of areas of activity was adopted for both the patent and simplified taxation systems. The services of cooks at home and sports training have been added to the patent IP.
Crimea
We will separately highlight tax benefits in the Republic of Crimea. To attract investors, the Republic practices two-year benefits on property, land and transport.
But this applies only to investors; tax holidays have not yet been introduced for individual entrepreneurs in Crimea.
Take advantage some tips to get the most out of the tax holiday:
- Entrepreneurs of both the patent and simplified taxation systems, engaged in activities in the domestic, social and scientific spheres, can take advantage of tax holidays. Please note the holiday period! They last for two years, according to the tax service. To get the maximum benefit, do not open a sole proprietorship at the end of the year.
- An entrepreneur can take advantage of tax holidays only once in his life. If he closes his individual entrepreneur and opens a new one in order to receive benefits, he will not succeed.
- Do not forget that an entrepreneur is not exempt from paying insurance premiums, property taxes and wages during the tax holiday.
- Despite the fact that under the simplified system you do not need to pay tax, the declaration must be submitted annually.
The rules for providing tax holidays for entrepreneurs are described in the following video:
Are there tax holidays for small businesses in 2019 or not? It is useful to know the answer to this question both for those planning to open their own business and for existing business entities. After all, there are certain ways to save taxes. Find out who can use them and under what conditions in our article.
Are there currently tax holidays for small businesses?
The law on so-called tax holidays has been in force in Russia since 2015. But it applies only to individual entrepreneurs (IP), and does not apply to companies, even those related to small businesses. The essence of the holiday is that an entrepreneur using a simplified or patent tax system (STS) can apply a rate of 0% to calculate tax.
Such benefits are not provided to all taxpayers-entrepreneurs, but only to those who conduct a certain type of activity. This:
- production;
- work in the scientific or social sphere;
- domestic services.
This condition follows from paragraph 4 of Art. 346.20 of the Tax Code of the Russian Federation, which concerns the simplified taxation system (STS), and clause 3 of Art. 346.50 on the application of a patent. For other conditions, see the diagram.
Anyone who decides to take advantage of this benefit must ensure that all conditions stipulated by law are simultaneously met. If at least one condition is not met, the benefit will not be granted. Let's consider each required feature separately.
So, the fundamental condition is the adoption of a law establishing a zero tax rate in a certain constituent entity of the Russian Federation. That is, the federal law gave the regions the right to independently decide on providing benefits to entrepreneurs. Also, constituent entities of the Russian Federation are given the right to introduce certain restrictions when providing vacations:
- they can set a limit on the number of employees an entrepreneur has;
- may limit the maximum amount of income to qualify for the 0% rate.
In many regions, zero-rate laws have been adopted. You can find out whether such a law applies in your region by calling the tax service hotline.
The phone number can be found by following the link.
Criteria for entrepreneurs eligible for tax holidays
The key criterion is that the law, again, does not apply to all entrepreneurs, but only to those who registered for the first time, and the registration date must be within the period of validity of the regional law.
Can individual entrepreneurs who were deregistered and then re-registered in this capacity count on benefits, the Ministry of Finance clarified.
The next important point is the period of validity of the benefit. Tax holidays for small businesses in 2019 will also be in effect and will last until the end of 2020. But the benefit can only be used for 2 continuous tax periods.
For example, an entrepreneur registered after the regional law came into force in September 2018. In this case, subject to all other conditions, he:
- He has the right to apply a zero rate during 2018-2019, but in this case the calendar year 2018 will be incomplete and he will exercise his right only within September - December 2018.
- Or it can take the period from January 1, 2019 to December 31, 2020, in which case it uses 2 full calendar years. The period must be continuous, that is, in this case you cannot select first 2018 and then 2020.
Another important condition: income received from a preferential type of activity must be at least 70% of the entrepreneur’s total income. In addition, a specific list of activities for which a business entity is exempt from paying taxes under the simplified tax system and special tax system is also established by the subject of the Russian Federation.
It should be remembered that if, according to all the criteria, an individual entrepreneur receives the right to apply a zero tax rate, this does not exempt him from paying other mandatory payments:
- transport tax;
- property tax when paid from the cadastral value;
- fixed insurance premiums for yourself;
- personal income tax and insurance premiums from wages of employees.
At the same time, he does not pay the minimum tax if he applies the simplified tax system with taxation of “income reduced by the amount of expenses.”
Examples of regional laws on tax holidays
Let's consider the conditions for applying holidays using the example of the Moscow law “On establishing tax rates for taxpayers registered for the first time as individual entrepreneurs and switching to a simplified taxation system and (or) a patent taxation system” dated March 18, 2015 No. 10.
The law specifies the types of activities for which an entrepreneur will be able to apply a zero rate under a simplified procedure. This production:
- food;
- clothes;
- textile and paper products;
- items made of plastic and rubber;
- machinery and equipment;
- medical instruments;
- furniture;
- sporting goods;
- children's toys, etc.
Benefits are also provided for the provision of services in the field of health care, education and sports, and when conducting scientific research. And for entrepreneurs working on a patent, the following types of services are indicated:
- repair of garments, shoes, furniture;
- tutoring;
- supervision and care;
- toy repair;
- copying works;
- carpet restoration;
- conducting excursions, etc.
Legislators limited the maximum number of employees for an entrepreneur to 15 people. The Moscow law does not provide for restrictions on the amount of income.
Let's consider a similar law in the Moscow region. The laws of the Moscow Region “On the tax rate levied in connection with the application of the simplified taxation system in the Moscow Region” dated 02/12/2009 No. 9/2009-OZ and “On the patent taxation system in the Moscow Region” give the right to receive a grace period in the Moscow Region. dated November 6, 2012 No. 164/2012-OZ. In the law, the types of activities for “simplified people” are listed according to OKVED codes. This includes:
- activities in livestock and crop production;
- different types of production and repair;
- medical and educational services;
- activities in the sports field;
- household services and much more.
For entrepreneurs using PSN this is:
- different types of production work;
- medical services;
- transportation of goods;
- activities in the field of education and sports;
- furniture manufacturing;
- provision of household services and much more.
The laws of the Moscow region do not contain any restrictions on the number of employees or the amount of income from the activities of an entrepreneur.
But not all regions do not limit their entrepreneurs in the amount of income and number of employees. For example, in the Astrakhan region, entrepreneurs with an average number of employees not exceeding 5 people apply for a zero rate under the simplified tax system, and the maximum income should not exceed 10 million rubles.
NOTE! Before deciding to enter into a tax holiday, carefully study your regional law.
Results
There are still 2 years left, during which some entrepreneurs can legally take advantage of tax holidays. Vacations are exempt from tax upon simplification and the cost of a patent.
In order to check your right to receive such a benefit, you need to find out whether the corresponding law has been adopted in the subject of the Russian Federation in which the entrepreneur is registered. Next, you should check whether your type of activity is specified in the law and whether the income from it constitutes at least 70% of your total income. These holidays are provided only to individual entrepreneurs registered for the first time during the period of validity of the regional law.
Carefully study your regional law - it may contain restrictions on the number of employees and the amount of income.
