What reports need to be submitted to individual entrepreneurs in the general mode?
The general taxation regime involves the payment of the following taxes:
- for added value;
- profit - for organizations,
- income of individuals - for individual entrepreneurs, lawyers, notaries and other individuals who have undergone appropriate registration with the tax authority.
Declarations regarding the calculation of these taxes must be submitted to the tax authorities. Thus, the main reporting of individual entrepreneurs on OSNO includes a VAT declaration and a declaration in form 3-NDFL. Let's look at each of them in more detail.
Reports on the main tax - personal income tax
Declaration 3-NDFL is submitted once a year. For reporting for 2020, this form has undergone minor changes (approved by order of the Federal Tax Service dated October 7, 2019 No. ММВ-7-11/ [email protected] ). Read more about changes to the form here.
The deadline set for sending the declaration to the tax office is April 30 of the year following the reporting year.
Regardless of whether the entrepreneur received any income during the reporting year or not, he will have to report on personal income tax. That is, 3-NDFL is submitted with zero indicators.
Until the end of 2020, entrepreneurs in the general regime were assigned the obligation to submit another form to the tax authorities - 4-NDFL. It was handed over to:
- entrepreneurs who have just started their activities;
- former special regime officers who were “dismissed” from the simplified tax system, UTII, PSN due to exceeding certain indicators;
- Individual entrepreneurs whose income from their core activities has changed by more than 50%.
Starting from 2020, there is no need to submit 4-NDFL, because... Entrepreneurs now calculate advances based on actual income received rather than estimated income. See here for details.
What kind of reporting should an individual entrepreneur submit for personal income tax and how to correctly pay personal income tax on income from business activities and on the income of employees, ConsultantPlus experts told. Get trial access and upgrade to the Ready Solution for free.
VAT declaration
The VAT declaration form is the same for organizations and entrepreneurs. It was approved by order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/ [email protected] However, due to changes introduced to the Tax Code in terms of increasing the basic tax rate to 20%, the form needed to be adjusted, which was done by department order dated December 28, 2018 No. SA-7-3/ [email protected]
The declaration includes a title page and 12 sections. However, you do not need to fill them all out and submit them all at once. Only those for which there is data to fill out are subject to submission to the tax authorities. The material VAT Declaration for Individual Entrepreneurs on OSNO will help you fill out the form correctly.
In the case of submitting a zero report, the entrepreneur will only have to fill out the title page and section 1. For the procedure for filling out the zero report, see here.
The declaration is submitted quarterly, since the tax period for VAT is a quarter. The report must be sent to the tax authorities by the 25th day of the month following the reporting quarter.
IMPORTANT! Sending a VAT return by general regime employees to the inspectorate is carried out exclusively in electronic form. A paper return for such taxpayers is considered unsubmitted.
Keeping records of individual entrepreneurs according to OSNO and deductions
Both enterprises and individual taxpayers on OSNO must keep records of expenditure and income transactions, which implies recording all those that took place in a special book.
For individual entrepreneurs, a slightly smaller volume of accounting is provided. For example, double entry is not required for accounts. The income and expense ledger reflects the situation regarding the property of the taxpayer-entrepreneur and the results of the latter’s activities during the tax period. The registered data is used when calculating personal income tax.
It is mandatory for entrepreneurs of this form of tax accounting to maintain a book of sales and purchases (for calculating VAT). Both received and issued invoices are subject to recording in the registration journal.
Entrepreneurs using hired labor must keep records of personnel, as well as the calculation and payment of wages. All information must be retained by the taxpayer in proper condition and within the period prescribed by law.
Submission of a report on the average number of individual entrepreneurs is mandatory for private entrepreneurs, regardless of the form of taxation used and the duration of operation.
Annual reporting of individual entrepreneurs is mandatory under any taxation system; quarterly reporting is presented selectively, in accordance with legal requirements. Find out about quarterly reporting of individual entrepreneurs from this article.
An entrepreneur may claim certain deductions when paying taxes. To deduct income taxes, documents confirming expenses are required. If it is not possible to provide them, the method of professional deductions from the amount of income of an individual entrepreneur (20%) is used.
Salary reports for individual entrepreneurs: when they are submitted and what is included in them
An individual entrepreneur can start a business and manage all the affairs independently. However, it often happens that a person ceases to cope with the work alone and he has to hire people under employment contracts or civil contracts. In this case, the individual entrepreneur begins to act as an employer, which is associated with the payment of wages, the calculation and withholding of personal income tax, and the calculation of insurance premiums on all payments made in favor of employees. In such situations, the scope of the individual entrepreneur’s reporting on the OSN is significantly expanded. We will tell you what it includes further.
Reports to the tax office
The reporting intended for submission by the individual entrepreneur to the tax authorities will consist of:
- From the calculation of 6-personal income tax, introduced into circulation by order of the Federal Tax Service dated October 14, 2015 No. ММВ-7-11/ [email protected] It contains general information about income accrued to employees and the amounts of personal income tax calculated and withheld from such income. The reporting periods are: 1st quarter, half year, 9 months and year. Payments for the first three listed periods must be completed and submitted by the last day of the month following the reporting period. Annual calculations are due by March 1 of the following year.
- 2-NDFL certificates, the form of which has been updated starting with the reporting for 2019. They must be submitted on forms approved by order of the Federal Tax Service of Russia dated October 2, 2018 No. ММВ-7-11/ [email protected] They are compiled separately for each employee, indicating all accrued income and calculated tax. Certificates are submitted once a year before March 1 of the year following the reporting year.
ATTENTION! The deadline for submitting the annual 6-NDFL and 2-NDFL has been reduced by 1 month. You must report for 2020 no later than 03/02/2020, because 03/01/2020 - Sunday. See here for details. In addition, the procedure for submitting forms has changed: tax agents whose payroll does not exceed 10 people will be able to report on paper. We talked in more detail here.
- A unified calculation of insurance premiums, approved by order of the Federal Tax Service dated October 10, 2016 No. ММВ-7-11/ [email protected] The report contains information on payments in favor of employees and calculated contributions for compulsory health insurance, compulsory medical insurance, VNiM. It is very voluminous and consists of a title page, three sections, ten appendices to section 1 and one appendix to section 2. But only those parts in which data are entered must be submitted. The calculation is submitted based on the results of the 1st quarter, half a year, 9 months and a year. The deadline for submission is the 30th day of the month following the reporting period.
IMPORTANT! The ESRV for the 1st quarter must be submitted on the updated form from the order of the Federal Tax Service of Russia dated September 18, 2019 No. ММВ-7-11/ [email protected] For details, see here.
Reporting to the Pension Fund
The main reports that the Pension Fund expects from employers, including individual entrepreneurs, are:
- Monthly SZV-M—sent to the Pension Fund at the end of each month until the 15th day of the next. The form of this report was approved by Resolution of the Pension Fund Board of February 1, 2016 No. 83p. It contains information about persons with whom the employer entered into contracts (labor and civil law). Here are the full names, SNILS, and Taxpayer Identification Numbers for each employee.
- The annual SZV-STAZH together with the EDV-1 form is due at the end of the year before March 1 of the following year. For 2020, you must report in the form approved by Resolution of the Pension Fund Board of December 6, 2018 No. 507p. The report is intended to provide information about the length of service of insured persons. It must also be handed over by the entrepreneur when his employees retire.
ATTENTION! Since January, individual entrepreneurs must submit new forms: SZV-TD and SZV-I. Read more about the forms here.
In addition to those listed, there are also reports such as SZV-KORR, SZV-ISKH, DSV-3 and SZV-K, which are submitted when errors are detected or when additional information is provided.
Report to the Social Insurance Fund
All reporting that must be submitted to the Social Insurance Fund for entrepreneurs who use hired labor consists of one single form 4-FSS for insurance premiums for industrial accidents and occupational diseases. The form of the specified report was fixed by order of the FSS of the Russian Federation dated September 26, 2016 No. 381 and edited by order dated June 7, 2017 No. 275. The form includes a title page and 6 tables, but it is necessary to submit only the title page and tables 1, 2, 5. They contain information :
- on payments that form the basis for calculating NS and PP contributions;
- payments for which contributions are not calculated;
- tariffs of contributions assigned by the Social Insurance Fund based on the types of activities included in the extract from the Unified State Register of Individual Entrepreneurs;
- the amount of calculated contributions;
- employees of the entrepreneur undergoing medical examinations and conducting a special assessment of working conditions at the individual entrepreneur.
Tables 1.1, 3 and 4 are prepared and submitted only if data is available.
A report is presented based on the results of the reporting periods: 1st quarter, half year, 9 months, year. The deadline for submitting the report depends on the form of submission. If the report is submitted on paper, then the report must be submitted by the 20th day of the month following the reporting period; if the report is transmitted electronically, then until the 25th.
Reporting of individual entrepreneurs
For entrepreneurs in any tax regime, including individual entrepreneurs on the simplified tax system, without employees, reporting in 2020 is significantly less than for individual entrepreneurs. If there are personnel, the entrepreneur reports on personal income tax and insurance premiums calculated and paid for employees.
A new SZV-TD form will be introduced for employers from 01/01/2020. It is submitted to the Pension Fund if there are personnel changes in the reporting month. The introduction of a new report is associated with the transition to electronic work books.
Updated 04/09/2020: New reporting deadlines in 2020: table
For convenience, we will summarize all the main reporting of individual entrepreneurs in 2020 into a table.
Results
The composition of individual entrepreneurs' reporting on OSNO without employees is small. It only includes a VAT return and a 3-NDFL return. Entrepreneurs who hire employees, in addition to these two declarations, must submit a fairly wide range of reporting forms to the tax office, the Pension Fund and the Social Insurance Fund on employees, remunerations paid in their favor, personal income tax withheld from these remunerations and accrued insurance premiums.
Sources:
- Tax Code of the Russian Federation
- Order of the Federal Tax Service of Russia dated September 18, 2019 No. ММВ-7-11/ [email protected]
- Order of the Federal Tax Service dated October 14, 2015 No. ММВ-7-11/ [email protected]
- Order of the Federal Tax Service of Russia dated October 2, 2018 No. ММВ-7-11/ [email protected]
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