When an individual entrepreneur uses the simplified tax system, property tax in 2020 is not paid in accordance with the norms established by law. Individual entrepreneurs and companies operating under a simplified taxation system are exempt from paying certain types of taxes. Despite this, there are a number of exceptions.
If you own a plot of land, you must pay land tax. If a businessman owns a vehicle, he is also subject to tax, regardless of the chosen taxation system. More details about this point can be found in the Tax Code of the Russian Federation - Article 358.
When do you need to pay property taxes?
At the beginning of December 2020, the book form for “Accounting for Income and Expenses” was updated, which was used voluntarily by entrepreneurs. Starting from January 1, 2020, this form became mandatory for everyone who is on the simplified tax system.
The update came as many were paying trading fees. Thanks to this, another section has appeared that taxpayers with income must fill out.
At the moment, separate accounting is mandatory. If income with deduction of expenses (income minus expenses) is selected, the amount of the trade tax is included in the tax expense.
Property tax in 2020 for individual entrepreneurs using the simplified tax system is paid mainly when it is used to carry out the activities of the entrepreneur. But it is worth considering that every rule has an exception. Property includes real estate for which a cadastral price is established in accordance with the relevant provisions of the Tax Code.
Thus, individuals who have completed the registration process and have chosen individual entrepreneurs as their organizational form pay the tax:
- For property objects not used for business activities.
- Use in work of property objects that have a cadastral value.
In the process of work, a business owner may encounter difficulties. At the time of payment of property tax under the simplified tax system, individual entrepreneurs in 2019 do not have a division into their own and those used in their work. A businessman is considered the owner of all objects that he uses or not to conduct his business. The tax authorities do not have any other information.
The Federal Tax Service has data that an individual owns a number of objects, on the basis of which notifications are sent to him about the need to make payment before the beginning of December of the calendar year.
Who may not use cash registers (CRE) in 2020
Another benefit (due to the high cost of equipment and maintenance) is the exemption from the use of cash registers.
Who may not use cash registers and cash registers in 2020:
- Individual entrepreneurs who have payment systems or issue loans according to Law No. 54-FZ are exempt from using cash register equipment in ATMs and other devices intended for carrying out operations for transmitting orders for money transfers using electronic means of payment;
- Individual entrepreneurs and organizations providing services to the public before July 1, 2018 may not have used cash registers; after that, benefits remained for some types of activities and in some regions - you need to check with your tax office;
- Religious organizations;
- Individual entrepreneurs and organizations with a patent or imputation may not have used cash register until July 1, 2020, after which benefits remained for some types of activities and in some regions - you need to check with your tax office;
- Individual entrepreneurs and organizations that are located in hard-to-reach and remote places, as well as those who are engaged in certain types of activities, for example, trading in kiosks, shoe repair, splitting firewood, and others, until July 1, 2020, could not use KKM, after that There are still benefits for some types of activities and in some regions - you need to check with your tax office;
- Rural pharmacies.
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Also, for all these categories, from July 1, 2020, Law No. 54-FZ introduced the obligation to use online cash registers. But for a number of preferential categories of entrepreneurs, there remains an exemption from the cash limit and a simplified procedure for conducting cash transactions.
Submitting an application to use a property
If property tax is paid, then individual entrepreneurs using the simplified tax system in 2020 have the opportunity to use preferential conditions, as contained in the Tax Code of the Russian Federation - Article 407. The following
are exempt from the obligation to pay property tax:
- Minor children who are orphans and left without parental care.
- Large families recognized at the legislative level.
- Persons who have dependent disabled children, except those who are fully supported by the state.
If an entrepreneur has the right to use benefits, then he must write a free-form application, attach documents confirming this and personally take all this to the tax inspector.
To use benefits, a package of documents must be provided to the Federal Tax Service, which serves as confirmation.
Based on the Federal Law, individual entrepreneurs who have just completed the registration process and started working have the right to take advantage of a zero tax rate for up to two tax periods. These “vacations” exempt the business owner from certain mandatory deductions. The zero rate includes income and property tax and VAT. The entrepreneur must pay everything else.
It is worth considering that such benefits are not provided for everyone; to receive them you must meet certain criteria:
- IP registered for the first time. Only beginners can use tax “vacations” in their work. It is prohibited to liquidate an old business, open a new one and then claim preferential conditions.
- For the taxation system, a patent or simplified tax system is used. Other systems are not included in this case.
- A business must be opened in one of three areas: production, scientific, social.
Benefits are not used equally throughout Russia. You can only count on receiving them when they are accepted by local authorities at the regional level.
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Property tax for individual entrepreneurs in 2019
Subsidy for starting a business for the unemployed
Among the above methods of state support for individual entrepreneurs, it is worth highlighting separately the subsidy for starting a business, which any unemployed person can receive if they decide to create an individual entrepreneur.
This subsidy is paid by the Employment Center, so to receive it you must first register as unemployed and register.
After this, you must notify your supervisor that you want to apply for a subsidy and they will tell you in detail what is required for this.
First of all, you need a clear business plan, where you describe in detail all stages of your business from opening to profit. Besides you, other unemployed people may also participate in the competition, so you need to try to ensure that you are chosen and that the money goes to you and not your neighbor.
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What can you spend a subsidy from the Employment Center on:
- Payment of state duty;
- Purchase of raw materials;
- Payment for notary services;
- Repair of retail or office premises;
- Purchase of equipment, machines, materials;
- Payment for legal and consulting services.
Tax regulations
The obligation to pay property taxes for individual entrepreneurs on the simplified tax system did not appear in 2020, but at the moment property rights arose. Payments are made based on notifications received from the tax office. The tax is calculated for a certain period: 3, 6 and 9 months. A reporting declaration for the past year is also filled out, which is provided to the Federal Tax Service.
The list of objects that are included in the cadastral list includes:
- Premises intended for offices.
- Shopping centers.
- Premises classified as catering establishments.
- Objects intended for consumer services.
The cadastral value is as close as possible to market prices, which increases the cost of the tax paid. Real estate valuation is carried out once every five years.
Estimated calculations are published by Rosreestr on the official website. If some property of a business owner is not included in the cadastral list, then the tax is calculated based on the average residual annual price.
When an individual entrepreneur uses the simplified tax system, he is exempt from income tax and personal income tax.
At the legislative level, two rates are provided:
- 6% of the amount of income received through the sale of finished products and services provided;
- 15% of net profit, after deducting all taxes and expenses.
All funds that are reflected in accounting reports are considered income.
The list of expenses is specified in the Tax Code - Article 346.16. This list cannot be changed by authorities in a particular region.
Don't miss the tax deadline
The tax in question must be paid by October 1 of the following year. In other words, it will have to be paid only 9 months after the end of the tax period. Many entrepreneurs, in order to evenly distribute tax payments or for the simple reason of reluctance to part with money, postpone payment until the last day.
This should not be done for a number of reasons, for example, because the payment may simply not have time to reach the recipient. Despite the high speed of electronic payments, technical failures in banks are still common. Therefore, practicing accountants consider the optimal option to pay property taxes 2 business days before the deadline.
Do not forget that the date of payment is not considered the day the payment document is received by the bank, but the date of debiting funds from the individual entrepreneur’s account or the date of depositing money into the cash desk of a credit institution.
You can pay tax from your current account or any plastic card. New online services will help simplify this procedure, for example, a personal account on the website nalog.ru or gosuslugi.ru.
How to calculate the tax amount?
Tax payments are made by the entrepreneur to a special current account. Payments must be made by the end of the calendar year. In some cases, an advance system is provided on a quarterly basis.
When business registration is carried out not at the beginning of the year, but at any other reporting moment, then accruals occur from the moment the activity begins.
Accruals to social funds begin after information about individual entrepreneurs is entered into the state register, and they stop only after the liquidation of the business.
Every businessman can independently calculate the cost of tax; for this you need to know:
- Tax base depending on the amount of profit received.
- Tax rate.
- Accrual and payment period.
At the time of legalization of the business, the owner must indicate the taxation system. If this is not done, then payment of contributions occurs on general terms. Accruals under OSNO occur until the entrepreneur writes an application to the tax office about the transition: to a simplified system
(USN), single tax (UTII), patent (PSN).
You can apply for the simplified tax system if you take a responsible approach to choosing the OKVED code for your future organization. This is due to the fact that not all areas of activity can be translated into simplified language.
A patent is specific only to individual entrepreneurs. It is not possible to obtain permission for all types of activities, according to the Tax Code of the Russian Federation - Article 346.43. The generated list may vary depending on the legislative bodies of local government and the regional structure.
To calculate the property tax rate, the formula is used: DB x FP x K1x K2 x 15%.
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Should an individual entrepreneur using the simplified tax system pay personal income tax for himself and for his employees?
Where:
- BD - monthly income, the calculation of which is carried out on the basis of the Tax Code - Article 346.26.
- FP are physical indicators that can be found in the same article as the DB.
- K1 is a coefficient that is approved by the Russian government once a year.
- K2 - the correction indicator is determined based on regional standards.
A patent can be used only if the number of employees is no more than 15 people and the annual income does not exceed 60 million rubles.
What property is subject to tax?
Taxable objects usually include real estate, in particular:
- residential - cottages, apartments, dachas, houses;
- non-residential - shopping centers, administrative buildings, production areas, garages, outbuildings, other buildings and structures;
- shares in the common ownership of the above property.
Those whose real estate meets the requirements listed in clause 1 of Article 378 of the Tax Code of the Russian Federation will have to pay off the budget. The main innovation is that now real estate is taxed depending on its cadastral value.
In this case, the obligation to pay NI will arise for the entrepreneur only if in the region of his residence:
- the relevant regulatory document has been adopted;
- a closed list of objects subject to tax was approved;
- a reliable cadastral assessment of their value has been made;
- at the beginning of the tax period, the cadastral value of the object is fixed.
How can I find out the cadastral value of real estate?
For any organization, real estate is reflected using accounts No.01 or No.03. To clarify whether the list of property of the business owner belongs to the cadastral list, you must make an official request through the tax office. You can also clarify the information of interest through the regional Rosreestr. To do this, you will need to request an extract from the cadastre for the estimated value of the objects.
For some regions, there are times when the price of real estate was approved back in 2013, and it is valid until 2019, until today with some adjustments. When an object is included in the list, it remains in it for the entire time.
When 30% of the total area of the entire building is allocated and used for office space, then it is considered to be an administrative and business center. The building is taxed in accordance with Article 378.2, paragraph 3 of the Tax Code of the Russian Federation.
When the owner of a property believes that his property is included in the cadastral list by mistake, he can challenge this fact in court and have it excluded.
