Preferential tax system - single tax on imputed income

Concept and types of tax benefits

Tax benefits are a more favorable regime for transferring obligatory payments to the budget compared to the “standard” one. Benefits can be provided in different ways:

1. Exclusion from taxation of certain objects.
2. Complete exemption from certain taxes.
3. Reducing the tax base.
4. Reduced tax rates.
5. Deferment or installment payment.

Tax benefits cannot be established individually for a specific individual or legal entity (clause 1 of article 56 of the Tax Code of the Russian Federation). Also, benefits should not depend on nationality, religion, citizenship or source of capital (clause 2 of article 3 of the Tax Code of the Russian Federation).

https://youtu.be/Wky0rGyNrSo

The concept of “donation” and “charitable donation”

The concept of "donation". The Civil Code of the Russian Federation considers a donation as a special type of gift. The concept of “donation” is disclosed in paragraph 1 of Art. 582 of the Civil Code of the Russian Federation. A donation is recognized as a donation for generally beneficial purposes of the following objects of civil rights:

• things
• rights

A thing is recognized as objects of civil rights, including cash and documentary securities, other property, including non-cash funds, uncertificated securities, property rights (Article 128 of the Civil Code of the Russian Federation).

Giving for public benefit purposes is a prerequisite for donation. However, the content of the concept of generally beneficial purposes is not disclosed in the legislation. Its meaning can be found in the law enforcement practice of arbitration courts.

LEGAL SERVICES

https://youtu.be/de6b5Z33afg

Who sets tax breaks?

The tax system in the Russian Federation consists of three levels: federal, regional and local. Each of them may be subject to certain preferences.

At the federal level, preferential treatment is determined only by the Tax Code of the Russian Federation. At the regional and local levels, benefits can be established by the Tax Code of the Russian Federation or regulations of constituent entities of the Russian Federation or municipalities.

Also at the “lower” levels a combined option is possible. In this case, the Tax Code of the Russian Federation determines the “framework” conditions for the application of benefits, and regional or local authorities specify them.

For example, for personal property tax, a basic reduced rate has been established for residential real estate - up to 0.1%. And local authorities have the right to set their own rates for this category of objects in the range from 0% to 0.3%. The tax burden in this case may vary depending on the value of the object, its category or location (Article 406 of the Tax Code of the Russian Federation).

Property tax

Property tax is paid by all citizens who own any real estate. However, there are groups of the population that do not pay the tax in full or are completely exempt from it. Thus, as a rule, pensioners, veterans of World War II and other military operations, as well as disabled people partially pay the tax.

As for large families, the state assumes that they are able to pay the issued property tax without the discounts provided.

If we talk about legal entities, they are exempt from tax in the following cases:

• if these are enterprises that create prosthetic and orthopedic devices;
• if these are scientific government centers;
• if we are talking about organizations providing legal assistance to the population;
• if we are talking about factories producing medicines to combat the epidemic;
• if these are religious organizations.

Withdrawal of individual objects from taxation

First of all, this category of benefits is applied to mandatory payments that are levied on owners of material objects: property tax, land tax or transport tax.

For example, cultural heritage sites are not subject to corporate property tax, and transport tax does not apply to low-power vehicles (up to 100 hp) equipped for use by the disabled.

But the allocation of non-taxable objects is also possible for “current” taxes. The company as a whole may be a VAT payer, but at the same time engage in the sale of certain goods or services exempt from this tax (Article 149 of the Tax Code of the Russian Federation).

Such exempt categories include, for example, medicine, passenger transport or cultural and artistic services. To apply this benefit, a businessman must keep separate records for taxable and non-taxable activities.

Who is subject to preferential taxation?

Those groups of the population that are listed below have the opportunity to receive state benefits.

For individual entrepreneurs

When creating an individual entrepreneur in 2020, preferential taxation will be provided in the following case:

• if over the last 3 months the income of entrepreneurs has not exceeded 2 million rubles;
• if the entrepreneur is engaged in the provision of specific types of services described in Article 149 (for example, medical services provided to pregnant women, sale of prosthetic and orthopedic products);
• if an enterprise carries out foreign trade transactions, then it can use a rate equal to 0%.

Pensioners

Pensioners can also count on preferential taxation. The first thing that is offered to them (but only to working people) is a tax deduction (the amount that is allowed to be deducted from the base for a specific tax). Such deduction can be made once in the following amounts:

• 2 million rubles if a house is being built or an apartment or other real estate is being purchased;
• 3 million rubles - for the interest that was paid on targeted housing loans;
• 1 million rubles – if your own property was sold (for example, land, dacha, and so on).

In the case of property tax, a pensioner may not pay it, but only for one piece of property. For example, a pensioner does not pay tax for a dacha, but at the same time pays tax for an apartment.

Help for military personnel

Military personnel, as well as those citizens who have worked in military service for 20 years or more, may not pay tax on one type of property. For example, military personnel can pay tax for a garage, but not pay for a dacha, and so on.

For organizations

The following benefits apply to organizations:

• if the amount of revenue from services or goods sold over the past three months, excluding VAT, was less than 2 million rubles.
• if an organization has switched to a simplified taxation system, the rate will be reduced by 15%.

Using this knowledge, you can completely avoid paying tax or at least partially reduce it.

Other Populations

The state has designated an entire group of the population that is exempt from taxes (in addition to military personnel and pensioners). This:

• Heroes of the Russian Federation and the USSR;
• disabled people belonging to the first and second groups;
• people who have been assigned a disability since childhood;
• participants of the Second World War and the Civil War;
• Chernobyl victims;
• people participating in nuclear weapons testing or eliminating the consequences of these tests;
• family members who have lost a military breadwinner;
• military personnel on duty in Afghanistan;
• spouses and parents of those military personnel who died in the line of duty;
• Individuals occupying utility buildings whose area does not exceed 50 sq.m.

A recording of a telephone conversation about exemption from land tax is presented below.

https://youtu.be/24-0O-lzvY8

Complete exemption from certain mandatory payments

One of the common options that allows a businessman to get rid of several mandatory payments at once is the use of special tax regimes.

"Simplified", UTII, unified agricultural tax and the patent system allow, in general, not to pay income tax, VAT and property tax. To switch to these regimes, a businessman must meet certain criteria: composition of founders, type of activity, revenue, number of staff, etc.

However, it would be more correct to talk here not about the abolition of these payments to the budget, but about their replacement with one “special” tax. Although in most cases it is more profitable than “general” ones, the fiscal burden still remains.

But for some categories of taxpayers, it is possible to cancel certain taxes without any replacement payments, for example:

1. Residents of the Skolkovo project may not pay income tax for 10 years (Article 246.1 of the Tax Code of the Russian Federation).
2. Representatives of “micro-businesses” with revenues of up to 2 million rubles can receive a VAT exemption. per quarter, as well as the already mentioned Skolkovo residents and participants in other innovation programs (Articles 145, 145.1 of the Tax Code of the Russian Federation).
3. Residents of free economic zones do not pay land tax for five years after purchasing a plot in the territory of the FEZ (clause 9, clause 1, article 395 of the Tax Code of the Russian Federation).

Package of documents

In order not to pay tax, you need to provide the following documents:

• passport of a citizen of the Russian Federation, and, if available, a pension certificate;
• if we are talking about large families, then birth certificates of all existing children are additionally provided;
• a document that confirms that the taxpayer actually owns a vehicle or land.

Additionally, in most cases, a statement is required, which is written at the place where the documents are submitted.

Reducing the tax base (tax deductions)

The application of this benefit is associated with the exclusion of certain amounts from the tax base.

For example, the income of an individual, which is subject to personal income tax, can be reduced by various “socially significant” expenses of the taxpayer: purchasing housing, training, treatment, etc. (Article 219 of the Tax Code of the Russian Federation). In addition, the law also provides for fixed deductions for personal income tax, which the employer must apply to certain categories: employees with children, veterans, disabled people, etc. (Article 218 of the Tax Code of the Russian Federation).

The use of accelerated depreciation can be considered a kind of “deduction” for income tax. In this case, a businessman has the opportunity to write off the costs of purchasing fixed assets much faster than in the standard mode - the acceleration factor can reach 3 (Article 259.3 of the Tax Code of the Russian Federation). The condition for accelerated write-off is, for example, an increased intensity of use of fixed assets, or their acquisition on lease.

Reduced tax rates

For most mandatory payments, it is possible to apply reduced tax rates. The benefit in this case may be related to the category of the payer or the type of taxable object, for example:

1. For income tax, preferential rates (from 5% to 13.5%) are applied to participants in free economic zones (Article 284 of the Tax Code of the Russian Federation).
2. For VAT, a reduced 10% rate is used for the sale of certain groups of goods and services: food, children's clothing, medicines, passenger transportation, etc. (Clause 2 of Article 164 of the Tax Code of the Russian Federation).

In addition to reduced tax rates, there is also a benefit in the form of a zero rate, for example:

1. For VAT when exporting goods or services (clause 1 of Article 164 of the Tax Code of the Russian Federation).
2. On income tax for social organizations: medical, educational, cultural (Article 284.1, 284.5 of the Tax Code of the Russian Federation).
3. According to the simplified tax system and the patent system - for two years for newly registered individual entrepreneurs (law of December 29, 2014 No. 477-FZ).

If a businessman is entitled to a zero rate, then he actually does not pay the corresponding mandatory payment. However, this benefit should be distinguished from the full tax exemption discussed above.

A businessman using a 0% rate must submit returns and also fulfill other taxpayer obligations. For example, for VAT this is the preparation of invoices and maintaining books of sales and purchases.

InfoBank.by – All banks in Belarus > All articles on finance and banking > Preferential taxation

Preferential taxation

Currently, state policy in the economic sphere is aimed at creating conditions for the priority socio-economic development of regions and small and medium-sized urban settlements.
In this regard, in addition to laws, a number of regulations are in force in 2008, providing tax preferences for certain tax payments. Decree of the President of the Republic of Belarus dated June 7, 2007 No. 265 “On the state comprehensive program for the development of regions of small and medium-sized urban settlements for 2007–2010”

In accordance with paragraph 3 of Decree of the President of the Republic of Belarus dated June 7, 2007 No. 265 “On the state comprehensive program for the development of regions of small and medium-sized urban settlements for 2007–2010” (hereinafter referred to as Decree No. 265) in 2007–2010, organizations the list of which is determined by Decree No. 265, registered and operating in small and medium-sized urban settlements, pay income tax in the amount of 50% of the rate established by law, and are exempt from paying the tax on highway users and the fee to the Republican Fund for Support of Agricultural Producers, food and agricultural science. Organizations that are granted tax benefits by Decree No. 265, the released collection amounts are directed to the implementation of the main indicators provided for by the business plans of these organizations and the programs for the socio-economic development of small and medium-sized urban settlements in which these organizations are located. For this purpose, in 2008, a fee for the Republican Fund for Support of Producers of Agricultural Products, Food and Agrarian Science is calculated, but not paid to the budget.

The released funds in the form of tax benefits provided by clause 3 of Decree No. 265 are reflected in the accounting records by the debit of account 68 “Calculations for taxes and fees” (according to the corresponding subaccount) in correspondence with the credit of account 86 “Targeted financing”, when using the amounts tax benefits for the intended purpose - by the debit of account 86 “Targeted financing” in correspondence with the credit of account 83 “Additional fund”. Income tax is calculated and paid at 50% of the rate established by law.

In addition, paragraph 4 of Decree No. 265 gave the Councils of Deputies of the regional and basic territorial levels the right to establish in 2007–2010 for organizations implementing investment projects to modernize production in order to produce competitive products, create new jobs in small and medium-sized urban settlements, benefits for real estate tax, land tax and tax for the use of natural resources (environmental tax) in terms of payments for the use (withdrawal, extraction) of natural resources.

Decree of the President of the Republic of Belarus dated December 23, 2004 No. 611 “On providing consumer service plants that provide household services to the population in rural areas with benefits for the payment of certain taxes and payments” Decree of the President of the Republic of Belarus dated December 23, 2004 No. 611 “On providing consumer service plants that provide household services to the population in rural areas with benefits for the payment of certain taxes and payments” (hereinafter referred to as Decree No. 611) was adopted in order to ensure the implementation of social standards for consumer services in rural areas.

According to paragraph 1 of Decree No. 611, it is provided to exempt, until January 1, 2011, consumer service plants (according to the list) that provide household services to the population in rural areas, including in rural settlements, urban-type settlements and cities of regional subordination, from paying value added tax and income tax on the sale of goods (works, services).

Decree No. 611 determined that funds released in connection with the abolition of the payment of the above taxes are accumulated in special accounts opened by banks serving consumer services plants, have a specific purpose and are directed to the development of their material and technical base, implementation of measures to introduce social standards for consumer services and are not subject to indisputable collection. In case of misuse of these funds, they are subject to recovery to the budget in the manner prescribed by law.

In addition, the regional Councils of Deputies, in accordance with the established procedure, must consider the issues of exempting consumer services factories from paying tax on sales of goods in retail trade until January 1, 2011, reducing their land tax and real estate tax, as well as providing free of charge to these factories for the use of land plots and other property that is in communal ownership and leased to them.

Decree of the President of the Republic of Belarus dated March 9, 2007 No. 119 “On the simplified taxation system” For organizations applying the simplified taxation system located in transformed settlements (subject to transformation in accordance with the State Program for Rural Revival and Development for 2005–2010 years, approved by Decree of the President of the Republic of Belarus dated March 25, 2005 No. 150) in agricultural towns, as well as in urban settlements and cities of regional subordination with a population of up to 50 thousand people, the list of which was approved by a resolution of the Council of Ministers of the Republic of Belarus dated May 30, 2007 No. 703 “On settlements in which reduced tax rates are applied under a simplified taxation system”, Decree of the President of the Republic of Belarus dated March 9, 2007 No. 119 “On a simplified taxation system” established reduced tax rates in the following amounts: - 5% for organizations that do not pay VAT; — 3% for organizations paying VAT.

Preferential rates apply from July 1, 2007 and continue to be used for three years, starting from January 1 of the year following the year in which the locality is excluded from the approved list.

Reduced rates do not apply to the sale of goods (work, services), the production (performance, provision) of which is carried out using fixed assets and (or) labor of employees of organizations outside the territory of the specified settlements, urban-type settlements, cities of regional subordination.

Does not apply to trade intermediary activities.

Decree of the President of the Republic of Belarus dated December 20, 2007 No. 9 “On some issues of regulation of business activities in rural settlements”

Decree of the President of the Republic of Belarus dated December 20, 2007 No. 9 “On some issues of regulation of business activities in rural settlements” (hereinafter referred to as Decree No. 9) was adopted in order to stimulate the economic development of rural settlements and came into force on January 1, 2008 .

Decree No. 9 established that organizations and individual entrepreneurs located (living) in rural settlements, when carrying out activities in these, as well as other rural settlements, for the production of goods (performance of work, provision of services) have the right to apply a special taxation procedure.

So, during 2008–2012. These organizations are exempt from paying income tax, as well as real estate tax on the value of objects located in rural settlements. Decree No. 9 stipulates that organizations pay a state fee for issuing a special permit (license) in the amount of 50% of the amount established by law.

During the period from January 1, 2008 to December 31, 2010, organizations that have the right to apply a special taxation procedure and carry out repair, construction and special installation work in rural settlements do not transfer funds to innovation funds formed in accordance with the law. In addition, other organizations that carry out repair, construction and special installation work in rural settlements for organizations and individual entrepreneurs entitled to apply a special procedure are exempt from such payments.

In addition, there is an exemption from customs duties and value added tax when importing technological equipment into the customs territory of the Republic of Belarus as a contribution to the authorized capital of organizations producing goods (performing work, providing services) in rural areas. According to sub. 1.2.1 of Decree No. 9, organizations applying a simplified taxation system or tax benefits in accordance with legislative acts, including those provided by Decree of the President of the Republic of Belarus of June 7, 2007 No. 265 “On the State Comprehensive program for the development of regions, small and medium-sized urban settlements for 2007–2010.” For example, if an organization enjoys benefits in accordance with the Law of the Republic of Belarus of December 19, 1991 No. 1319-XII “On Value Added Tax,” then it is possible to take advantage of the provisions of Decree No. 9 only if these benefits are waived.

A special procedure cannot be applied by organizations when: - simultaneously carrying out activities in another territory (for example, if an organization is registered and produces products in a rural area, but at the same time carries out work on the territory of the city of Mogilev, it does not have the right to apply a special procedure); — production of excisable goods; — production and (or) sale of jewelry made of precious metals and (or) precious stones; - carrying out lottery, trade and intermediary, tourism (with the exception of agroecotourism), real estate, insurance, banking activities, professional activities in the securities market, activities in the gambling business, as well as within a simple partnership and (or) business group.

It should be noted that trade intermediary activity is a business activity involving wholesale and (or) retail trade in goods of non-own production (Decree of the President of the Republic of Belarus dated March 7, 2000 No. 117 “On some measures to streamline intermediary activities in the sale of goods”).

It follows from this that if an organization is located in a rural locality, sells goods of its own production through a company store located in the same locality, or in another rural locality, it has the right to apply a special taxation procedure established by Decree No. 9, i.e. To. The sale of its products through a company store is not considered as trade intermediary activity.

Decree of the President of the Republic of Belarus dated January 28, 2008 No. 1 “On stimulating the production and sale of goods (work, services)”

Decree of the President of the Republic of Belarus dated January 28, 2008 No. 1 “On stimulating the production and sale of goods (work, services)” (hereinafter referred to as Decree No. 1) was issued in order to intensify business activity, stimulate the production and sale of goods (work, services).

Decree No. 1 established that commercial organizations newly created on April 1, 2008, incl. with foreign investments, with a location in populated areas with a population of up to 50 thousand people (according to the list approved by the Council of Ministers of the Republic of Belarus in agreement with the President of the Republic of Belarus), when carrying out activities in these populated areas, has the right for five years from the date of their creation do not calculate or pay individual taxes and fees.

Thus, from April 1, 2008, these organizations have the opportunity not to pay income tax and the fee to the Republican Fund for Support of Producers of Agricultural Products, Food and Agrarian Science in terms of the sale of goods (work, services) of their own production if they are separately accounted for.

In addition, the following is not paid: - real estate tax; — local taxes and fees; — tax on the purchase of motor vehicles.

In accordance with the generally established procedure, value added tax is calculated and paid, incl. value added tax levied when importing goods into the customs territory of the Republic of Belarus, tax on income from transactions with securities, excise taxes, stamp and offshore taxes, state duty, customs duties and fees, land tax, tax for the use of natural resources (environmental tax ), taxes calculated, withheld and transferred during the performance of the duties of a tax agent.

Commercial organizations, including those with foreign investment, for five years from the date of their creation are exempt from the mandatory sale of foreign currency received through transactions with non-resident legal entities and non-resident individuals from the sale of goods (work, services) of their own production, in including from the rental of property. In addition, Decree No. 1 exempts from import customs duties and value added tax technological equipment, components and spare parts for it (hereinafter referred to as goods) imported into the customs territory of the Republic of Belarus as a contribution to the authorized capital of commercial organizations with foreign investment, with the exception of those specified in subparagraph. 1.8 of Decree No. 1. The total cost of goods should not exceed the amount of non-monetary contribution named in the constituent documents of such organizations.

Goods must be declared under the customs regime of free circulation within the time limits established by law for the formation of the authorized capital.

It should be borne in mind that Decree No. 1 defines the conditions for the application of benefits.
The provisions specified in Decree No. 1 do not apply to certain organizations, in particular those using special taxation regimes (simplified taxation system, residents of free economic zones), as well as when organizations carry out certain types of activities (production and (or) sale of alcoholic beverages, tobacco products, publishing activities, activities in the gambling business, etc.). E.V. CHARENDO, economist https://www.profigroup.by/peo/

Postponement of payment deadline

Payment of mandatory payments at a later date can be implemented in two ways.

1. Deferment or installment plan (Article 64 of the Tax Code of the Russian Federation).

A businessman can pay the tax later or in installments, for example, in the event of force majeure (natural disaster) or in the event of a threat of bankruptcy. The deferment period can range from one to three years.

1. Investment tax credit (Articles 66, 67 of the Tax Code of the Russian Federation).

This form of support is provided to businessmen whose activities are especially important for the state. These are, for example, innovative companies, defense contractors, or residents of territorial development zones.

The term of the tax credit can range from one to ten years. Unlike installment plans, in this case you will have to pay for using budget money. True, it is not very expensive: the interest rate should not exceed 0.75 of the current Central Bank refinancing rate.

Are benefits always needed?

Unlike paying taxes itself, applying benefits is a right, not an obligation. The taxpayer has the right to completely refuse the preferences assigned to him or to suspend their use for a while, taking into account the specifics of calculating a specific payment (clause 2 of Article 56 of the Tax Code of the Russian Federation).

It would seem - why give up the benefits provided by law? However, such situations do happen.

Suppose a small enterprise switched to one of the special regimes and stopped paying VAT. In this case, the company may lose some of its clients - VAT payers, or will be forced to provide significant discounts. The loss in this case is sometimes comparable to the resulting tax savings.

Also, individuals do not always take advantage of social deductions for personal income tax (for example, for treatment). People who do not have the appropriate knowledge often turn to consultants to prepare documents for deduction. And if the amount of expenses is small, then the tax savings may be comparable to the consultant’s fee.

Economic essence of tax benefits

Financing of the work of the state apparatus is carried out through a system of taxes and fees.
The functions of the state limit its commercial activities, so it cannot support itself. Taxation allows not only to pay for government services, but also to solve the social and economic problems of society. Taxes and fees are the main tools for collecting money from citizens and legal entities. They represent a mandatory payment to the state. The tax is paid free of charge, and the fee gives the payer certain benefits in return for payment.

The tax system includes the entire set of relations arising regarding taxation. It is formed under the influence of many factors, so each country has its own specific features of tax collection.

Through the functionality of the tax system, the state can influence the country’s economy. The taxation system performs the following functions:

• direct collection of cash revenues to the budget;
• stimulating economic and social trends necessary for society;
• regulation of processes in the economy;
• promoting the establishment of social stability;
• exercising control over cash receipts.

Finished works on a similar topic

• Course work Tax benefits for individuals and legal entities 410 rub.
• Abstract Tax benefits for individuals and legal entities 250 rub.
• Test work Tax benefits for individuals and legal entities 220 rub.

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Note 1

Regulation of economic processes in the country is carried out using various mechanisms that can stimulate entrepreneurs and citizens to certain economic activities. One of the effective tools is tax incentives.

Definition 1

Tax benefit is an advantage of a taxpayer over other payers, determined by the state.

To enjoy the benefits, the taxpayer must have justifications that meet the tax laws of the country. In this case, he can apply the benefits in his activities without prior request. If the subject wants to take advantage of the benefits provided by local and regional budgets, then he needs to make a request to the appropriate institution. Only after checking and confirming them, the subject can declare their income taking into account benefits.

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Benefits can be applied to citizens and legal entities.