Timely payment of taxes, according to the legislation of the Russian Federation, is the direct responsibility of every entrepreneur. Moreover, every entrepreneur has the right to choose the taxation system that is more convenient for him.
And most entrepreneurs opt for the simplified taxation system. This is due to the lowest tax and administrative burden under this system.
You will learn how to calculate the simplified tax system in 2020 from our publication today.
Tax base for the simplified tax system
1. For the simplified tax system “income”, the tax base for determining the tax is income. 2. For the simplified tax system “income reduced by the amount of expenses”, the tax base is the monetary expression of income reduced by the amount of expenses.
For both options, the procedure for determining and the composition of income is the same; income under the simplified tax system is recognized as:
- income from sales, i.e., proceeds from the sale of goods, works and services of own production and previously acquired, and proceeds from the sale of property rights;
- non-operating income specified in Art. 250 of the Tax Code of the Russian Federation, such as property received free of charge, income in the form of interest on loan agreements, credit, bank account, securities, positive exchange rate and amount differences, etc.
Expenses recognized under the simplified system are given in Art. 346.16 Tax Code of the Russian Federation. The list of expenses is quite long. If necessary, you can familiarize yourself with it directly in the Tax Code of the Russian Federation.
Articles 346.15 to 346.17 of the Tax Code of the Russian Federation specify the procedure for determining and recognizing income and expenses under the simplified tax system.
Who can apply the simplified tax system
Legal entities and individuals who are not subject to the following restrictions can work under the simplified system:
- Banks, pawnshops, investment funds, insurers, non-state pension funds, professional participants in the securities market, microfinance organizations;
- Organizations with branches;
- State and budgetary institutions;
- Organizers of gambling;
- Foreign organizations;
- Participants in production sharing agreements;
- With a share of participation of other organizations over 25%, except for non-profit, budget-funded scientific and educational institutions and those in which the authorized capital consists entirely of contributions from public organizations of people with disabilities;
- If the residual value of fixed assets is more than 100 million rubles.
- Individual entrepreneurs producing excisable goods, extracting minerals, except sand, clay, peat, crushed stone, building stone;
- Individual entrepreneurs with more than 100 employees.
Also, the simplified tax system does not apply to private notaries and lawyers.
Formula for calculating the simplified tax system
1. For the simplified tax system “income”: Income X Tax rate. 2. For the simplified tax system “income minus expenses”: (Income minus expenses) X Tax rate.
These are the general formulas used to calculate the simplified tax system in 2020. These formulas do not take into account the following important details:
1. Recognition and accounting of expenses for calculating the tax base on the simplified tax system Income minus expenses:
In order for expenses under the simplified tax system “income minus expenses” to be confirmed, it is necessary to formalize them in accordance with the law. Otherwise, the tax authority will not take them into account when calculating the simplified tax system.
To confirm expenses, the following documents must be completed:
- payment document (receipt, account statement, payment order, cash receipt);
- a document confirming the transfer of goods or the provision of services and performance of work (invoice for the transfer of goods or an act for services and work).
2. Reducing the single tax on the simplified tax system due to paid insurance premiums:
- under the simplified tax system, “income” can be reduced by the single tax itself (advance payment);
- under the simplified tax system “income minus expenses”, insurance premiums can be taken into account when calculating the tax base (included in expenses).
EXAMPLE 1
Initial data:
1. LLC "Salut". 2. The amount of income is 270,000 rubles. 3. The amount of expenses supported by documents is 225,000 rubles:
- employee salary - 60,000 rubles;
- mandatory insurance premiums - 21,300 rubles;
- advertising expenses - 20,000 rubles;
- expenses for stationery - 5,000 rubles;
- expenses for postal and telephone services - 2,000 rubles;
- expenses for maintaining official transport - 19,000 rubles;
- expenses for renting premises - 50,000 rubles;
- expenses for paying the cost of goods purchased for further sale, reduced by the amount of VAT on paid goods purchased by the taxpayer and subject to inclusion in expenses - 47,000 rubles.
Task 1.
How to calculate an advance payment under the simplified tax system “income”, with a tax rate of 6%.
Answer:
270,000 (income) X 6% = 16,200 rubles.
The advance payment is subject to reduction by the amount of insurance premiums paid, but not more than 50% of the calculated advance payment:
16,200 - 21,300 = 16,200×50% = 8,100 rubles.
We get 16,200 - 8,100 = 8,100 amount of the advance payment of the simplified tax system, income payable.
Task 2.
How to calculate an advance payment under the simplified tax system “income minus expenses” at a tax rate of 15%.
Answer:
(27,000 - 225,000) X 15% = 6,750 rubles.
In this case, the advance payment is not subject to reduction by the insurance premiums paid, since the amount of insurance premiums is already taken into account in expenses.
CONCLUSION:
In comparative examples with the same initial data, the simplified taxation system “income minus expenses” is more optimal. But this only happens if the entrepreneur has large expenses.
Rates of the simplified tax system in the Sverdlovsk region
There are several simplified tax rates in force in this region. At what exact rate to pay the tax depends on the selected simplified taxation system (income or income minus expenses), the type of activity and some other conditions.
STS rate 0%
In relation to certain types of activities, a list of which see below, tax holidays apply in the Sverdlovsk region. They apply only to individual entrepreneurs registered for the first time, and apply for no more than 2 tax periods.
STS rate 5%, 6% and 7%
For companies and entrepreneurs operating under the simplified tax system, income minus expenses (with the exception of individual entrepreneurs that are subject to tax holidays), a 5% rate is applied if they are engaged in the types of activities indicated in the list below.
For other entrepreneurs and companies the following rates apply:
- for the simplified tax system, income minus expenses is 7% (in accordance with regional law 31-OZ);
- on the simplified tax system, income is 6% (in accordance with the Tax Code of the Russian Federation).
To find out or check the simplified tax rate in your region, watch the following video.
https://youtu.be/4slqMzfNu7M
>Law No. 31-OZ dated June 15, 2009 >Coffee break: the mystery of Leo Tolstoy
>STS rates in 2020: table
What are the rates under the simplified tax system in 2020 for organizations and individual entrepreneurs in 2019?
Deadline for payment of the simplified tax system
Despite the fact that, according to the Tax Code of the Russian Federation, the tax period for calculating tax on the simplified tax system is a calendar year, the obligation to pay this tax arises quarterly. The calculation is carried out on a cumulative basis: 1st quarter, half-year, nine months of the calendar year, calendar year.
Deadlines for payment of advance payments for single tax:
- based on the results of the first quarter - April 25;
- based on the results of the half year - July 25;
- based on the results of nine months - October 25;
- at the end of the year - until March 31 for organizations; until 30.04 for individual entrepreneurs. When calculating the simplified tax system at the end of the year, advance payments paid are taken into account.
Examples of calculations of advance payments and single tax on the simplified tax system
How to calculate the simplified tax system “Income” with examples of calculation for the 1st quarter is described above.
The calculation of the advance payment based on the results of the half-year is similar to the calculations for the 1st quarter. Then you need to multiply the tax base obtained based on the results of 6 months (from January to June inclusive) by the tax rate, and from this amount subtract the advance payment already paid for the first quarter. In the case of the simplified tax system “income”, the amount received must be reduced by insurance premiums (but not more than 50%). The resulting balance will be an advance payment for the six months.
We do the same when calculating the advance payment of the simplified tax system “income minus expenses”, except for reducing the advance payment due to insurance premiums.
At the end of the year, the single tax is calculated as follows:
- We multiply the tax base for the entire year by the tax rate. From the resulting amount we subtract all three advance payments. The resulting difference is the annual simplified tax system.
Amount of payments to the state
Tax payments to the budget and transfers to pension, social insurance and compulsory medical insurance funds. On average, insurance premiums are paid in the amount of 30% of employee salaries, and individual entrepreneurs must also transfer contributions for themselves. Under the simplified system, tax rates are lower than under the general system. Under the “Revenue” option of 6%, from 2020 regions have the right to reduce the tax rate to 1%. According to the “Income minus expenses” option, the rate is 15%, which can be reduced to 5%.
At the “Income” rate, advance payments for unified social security can be reduced by transferring insurance premiums up to 50%. Individual entrepreneurs without hired workers and with low income may not pay a single tax at all. At the “Income minus expenses” rate, insurance premiums are taken into account as expenses, but this procedure also applies in other tax systems.
We can conclude that the simplified tax system is beneficial when calculating taxes from income.
Tax calculation simplified tax system Income 6%:
Example 3
Initial data:
1. Individual entrepreneur with no employees. 2. Taxation system of the simplified tax system “income”. 3. Tax rate 6%. 4. Income:
- 1st quarter - 150,000;
- half-year - 350,000;
- nine months - 550,000;
- twelve months - 800,000.
Payment of fixed insurance contributions for oneself was made in equal parts, based on the fact that fixed contributions for 2019 are determined within the following limits: for pension insurance 29,354 rubles; for medical insurance 6,884 rubles. Payments were made within the following terms:
- until March 31 - 9059.50 rubles;
- until June 30 - 9059.50 rubles;
- until September 30 - 9059.50 rubles;
- until December 31 - 9059.50 rubles.
Example of calculating the simplified tax system Income:
Advance payment of the simplified tax system for the 1st quarter:
150,000 × 6% - 9059.50 = - 59.50 rubles, therefore, there is no need to pay an advance payment for the 1st quarter of 2020;
Advance payment of the simplified tax system for the six months:
(350,000×6%) - (9059.50 + 9059.50) = 2881 rubles.
Advance payment of the simplified tax system for nine months:
550,000 × 6% - (9059.50 + 9059.50+ 9059.50) - (2881) = 2941.00 rubles.
Payment of simplified tax system for the year:
800,000 × 6% - (9059.50 + 9059.50+ 9059.50+ 9059.50) - (2881+ 2941.00) = 5940 rubles.
If the amount of tax payable was in kopecks, then it would be necessary to round the resulting amount: a tax amount of less than 50 kopecks is discarded, and a tax amount of 50 kopecks or more is rounded to the full ruble.
Since the individual entrepreneur received an annual income of 500,000 rubles and thereby exceeded 300,000 rubles, he is obliged to pay an additional 1% of the excess amount to the Pension Fund. Such a payment must be made before July 1 of the year following the reporting year, but can be made in the current year, thereby immediately reducing the advance payments by the amount paid.
Example 4:
The initial data are the same as in example 3. i.e. at the end of nine months, the income amounted to 550,000 rubles.
(550,000 - 300,000) X 1% = 2,500.00 rubles.
If the individual entrepreneur pays this amount before September 30, then the advance payment for 9 months will be:
550,000 × 6% - (9059.50 + 9059.50 + 9059.50) - (2941.00 + 2500.00) = 380.50 rubles. In this case, the amount of the advance payment must be rounded and paid 381 rubles.
The advance payment will be reduced by 2,500 rubles due to an additional contribution to the Pension Fund in the amount of 1% of the difference in excess income and 300,000 rubles.
Major changes to the simplified tax system
As for changes in the taxation system, in principle, the State Duma can change the “rules of the game” in this “field” at any time. But, despite this, there is basic knowledge that every Russian who plans to make his entrepreneurial activity more or less profitable must master.
The first and main thing that will change in the simplified tax system 2020 is the income limit. Officials of the Ministry of Finance have already announced that starting from January 1, 2018, individual entrepreneurs and organizations will be able to switch to the “simplified system” under one condition: their income for the last 9 months should not exceed an amount equal to 112.5 million rubles, and this despite the fact that the enterprise will express a desire to switch to the simplified tax system with the onset of 2020.
At the same time, the maximum allowable income for those enterprises that continue to conduct business on a “simplified” basis in 2017 is 150 million rubles.
It is still not clear exactly what will happen to the residual value. It is also not clear whether the authorities will raise it in the future. However, tax experts are convinced that legislators will resolve this issue in the foreseeable future, and there is a fairly high degree of probability that this figure will be doubled
The changes to the simplified taxation system related to individual entrepreneurial activity are worthy of special attention. In this regard, the government declares its intentions to register representative offices for literally every entrepreneur paying taxes under a simplified system.
It is also assumed that in the foreseeable future, private entrepreneurs will be exempt from paying duties for a period of two years. At the same time, the growth in profitability of their business will not be taken into account.
As for the remaining changes to the simplified taxation system in 2020, they will be as follows:
- businessmen will be exempt from paying real estate taxes. However, this section of tax law contains certain exceptions that are designed to ensure transparent business. Business representatives are unlikely to be able to find a gap in the legislative framework. This means that they will have to work honestly with the state;
- the number of registers will be significantly reduced. This should entail a reduction in the amount of fines assessed for errors made during the preparation and submission of official documentation.
It is worth noting that any enterprise is obliged to notify the competent authorities of its desire to switch to a simplified taxation system. This will avoid misunderstandings and problems with representatives of the tax office during the annual audit.
Example of calculating the simplified tax system Income minus expenses 15%
The procedure for calculating advance payments and tax under the simplified tax system “Income minus expenses” is similar to the previous example, except for the following points:
- expenses must be justified in accordance with Article 346.17 of the Tax Code of the Russian Federation;
- Expenses are recognized on a cash basis, except for expenses when paying for the cost of goods. Such expenses are taken into account as goods are sold (clause 2.2 of Article 346.17 of the Tax Code of the Russian Federation);
- on the last day of the reporting period, expenses for the acquisition of fixed assets are recorded.
- the simplified tax system tax is not reduced by insurance premiums, since they are taken into account in expenses;
- when calculating the additional 1% contribution to the Pension Fund, the tax base is only income, expenses are not taken into account;
- the obligation to pay a minimum income of 1% in the event of a loss or in the case when the accrued tax of the simplified tax system for the year is less than the minimum.
- The tax base at the end of the reporting period is subject to reduction by losses received in previous periods.
Disputes with tax authorities
In the “Income” mode, the taxpayer does not have to justify the correctness of documenting his expenses. Income is recorded in the Book, and a declaration is submitted within the specified period; expenses are not taken into account. Taxpayers working under the “Income minus expenses” option confirm expenses, but there are almost no disputes with the tax authorities on this matter. Disputes regarding the payment of VAT are also excluded, except for the import of goods into the Russian Federation.
A significant disadvantage of the simplified tax system is the limitation of the circle of counterparties to those who do not take into account input VAT.
This might also be useful:
- What taxes does the individual entrepreneur pay?
- simplified tax system for individual entrepreneurs in 2020
- Tax system: what to choose?
- Tax calendar for 2020
- What reporting must an individual entrepreneur submit?
- Fixed payments for individual entrepreneurs in 2020 for themselves
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