What is the simplified tax system (Simplified Taxation System)?

How fixed assets are accounted for and written off

The simplified tax system and the OSNO are such different taxation systems that it is very difficult to compare them.
OSN provides for the maintenance of full accounting with the accrual and payment of all types of taxes. The simplified tax system allows for the payment of a minimum amount of taxes. How to switch from simplified tax system to OSN? A transition from one tax regime (STS) to another (OSN) is possible in the following cases:

• Termination of the use of the simplified tax system on a voluntary basis when submitting a notification to the tax office (clause 6 of article 346.13 of the Tax Code of the Russian Federation). It must be sent to the Federal Tax Service no later than January 15 of the year from the beginning of which the regime change takes place.
• Forced termination of the use of the simplified tax system as a result of exceeding the maximum permissible level of annual income or violation of other conditions for the use of the simplified tax system (clause 4 of article 346.13 of the Tax Code of the Russian Federation). A notice of termination of the use of the simplified tax system is submitted within the first 15 days of the quarter following the one in which the conditions for the use of the simplified tax system were violated.

The form of notification is given in the order of the Federal Tax Service dated November 2, 2012 No. ММВ-7-3/829.

See also “Notification of leaving the simplified tax system is required.”

The legal consequences of these actions include:

• transition to full accounting - for companies that used its simplified form. Firms using the simplified tax system can maintain accounting records using a simplified form that allows the combination of a number of data. Based on primary documents, when switching from the simplified tax system to OSNO, it is possible to restore the accounting detail required for this system for the accounts used in the full form of accounting;
• calculation and payment of taxes for which there were no obligations under the simplified tax system; Thus, the use of the simplified tax system exempts you from paying income tax, property tax and VAT; for individual entrepreneurs - from personal income tax on their income, property tax and VAT;
• filing a declaration under the simplified tax system before the 25th day of the month following the month in which activities on the simplified tax system were terminated according to the notification (clause 2 of article 346.23 of the Tax Code of the Russian Federation).

See also “Real estate built on the simplified tax system, and put into operation on OSNO: is it possible to deduct VAT?”

If the simplifier makes the transition to OSNO voluntarily from the beginning of next year, then problems with fixed assets do not arise. Property purchased under the simplified tax system is written off in equal shares during the tax period - a year.

If the transition from the simplified tax system occurs before the end of the year, the balance of the cost of the acquired fixed asset will be recorded. This balance of property value, not written off as “simplified” expenses, must be transferred to tax accounting on OSNO as the residual value of fixed assets (letter of the Ministry of Finance of the Russian Federation dated March 15, 2011 No. 03-11-06/2/34).

The Tax Code of the Russian Federation has a rule on calculating the residual value of fixed assets and intangible assets when switching from the simplified tax system to the OSNO. It concerns objects that were acquired before the application of the simplified tax system during the period of work at OSNO. That is, they bought property on OSNO, then switched to the simplified tax system, and then returned to OSNO. On the date of return to income tax, the tax residual value of fixed assets and intangible assets is calculated as the difference between the residual value of these objects upon transition to the simplified tax system and the expenses written off during the period of application of the simplified tax system (clause 3 of Article 346.25 of the Tax Code of the Russian Federation).

For more information about fixed assets, see this article.

When the application of the simplified tax system is terminated (regardless of the reason for this termination), the company or individual entrepreneur becomes a VAT payer and acquires the obligation to accrue it. During the transition period, you need to take into account when the money arrived. If an advance payment for a product was received before the transition to OSNO, and its purchase occurred later, then VAT must be charged only on sales.

For more information about the simplified VAT refund rules, read the article “Procedure for VAT refund under the simplified tax system in 2017-2018.”

See also the article “What to do with “input” VAT on fixed assets when transitioning from the simplified tax system to the general taxation regime?”

When switching from the simplified tax system, VAT must be charged from the beginning of the quarter in which the transition to OSNO took place, even if this happened in the last month of the quarter. The company must calculate and pay tax to the budget for the entire quarter.

It is necessary to pay attention to the fact that re-issuance of invoices with the inclusion of VAT is possible only for those shipments whose issuance period (5 days) expires in the month when the transition to OSNO became necessary. This is regulated by the fact that invoices from the date of shipment are issued exactly within this period (clause 3 of Article 168 of the Tax Code of the Russian Federation).

Some arbitration courts come to the conclusion that it is correct to re-issue invoices with the allocation of VAT from the beginning of the entire tax period for VAT, which includes the loss of the right to the simplified tax system (Resolution of the Federal Antimonopoly Service of the Volga District dated May 30, 2007 No. A12-14123/06-C29 was supported by the YOU RF in definition dated 06.08.2007 No. 9478/07).

The differences between the general taxation system (OSNO) and the simplified taxation system (USN) are as follows:

1. Any organization can use OSNO; upon registration it is assigned by default. To work on the simplified tax system, you need to meet the requirements of Art. 346.11–346.13 Tax Code of the Russian Federation.
2. The reporting and amount of taxes differ for these systems. Under OSNO, all types of taxes are paid, and “simplified” people, unlike “general regime” ones, do not make contributions for income taxes, property taxes and VAT. Individual entrepreneurs are additionally exempt from personal income tax.
3. Under OSNO, the object of taxation (ON) is profit, under the simplified tax system - income or income minus expenses.
4. The income tax rate for “general regime” employees is set at 20%, while other rates may be adopted for certain types of income. For example, for income from government securities of constituent entities of the Russian Federation, a rate of 15% is determined (subclause 1, clause 4, article 284 of the Tax Code of the Russian Federation).

If the “simplifier” chose IT in the form of income, then the latter are taxed at the rate of 6%, if income minus expenses - 15%. Subjects of the Russian Federation may lower these rates.

The article OSNO or simplified tax system - which is more profitable - will help you decide which tax payment scheme is more suitable for a particular entity.

So, the first thing a taxpayer must do to switch from the OSNO to the simplified tax system is to submit a notification to the Federal Tax Service at the location of the organization or the registration address of the individual entrepreneur before December 31 of the year preceding the year in which the simplified tax system began to be applied.

A profit and loss statement, balance sheet, and list of employees are attached to the notification.

Since the “simplers” replace income tax, property tax and VAT with a single tax, there is a need to create a transition period.

The following rules apply to enterprises that used the accrual method when determining the tax base (hereinafter - NB) for income tax (Article 346.25 of the Tax Code of the Russian Federation):

1. The NB on the date of transition to the new regime includes advance payments received before the transition, if counter-execution was made after the transition.
2. The “simplified” National Bank does not take into account income or expenses already taken into account for income tax.
3. Expenses incurred before the transition to the simplified tax system are used when calculating the NB “income minus expenses”, but depending on the moment of their payment (before or after the transition), they are recognized, respectively, either at the time of implementation or at the time of payment.
4. For the purposes of the simplified tax system, unaccounted income on debt obligations concluded under OSNO is taken into account (letter of the Ministry of Finance of Russia dated July 11, 2014 No. 03-03-06/1/33868).
5. If the organization used the cash method of NB accruals, these rules do not apply (see letter of the Ministry of Finance of Russia dated 03/07/2012 No. 03-11-09/12).

In the fourth quarter of the tax period before the year of using the simplified tax system, you can obtain a VAT deduction from advances for goods or services that will be received after acquiring the status of “simplified”, for fixed assets and intangible assets (clause 5 of article 346.25 of the Tax Code of the Russian Federation).

Accounting for fixed assets during the transition from OSNO to simplified tax system has the following features (for the “income minus expenses” base).

S = P – ƩA,

where: P is the purchase price of the OS;

ƩA is the amount of accrued depreciation.

The procedure for transferring fixed assets to expenses in this case depends on their useful life (hereinafter referred to as SIP):

1. If it is less than 3 years old, then the OS is written off in the first year of operation on the simplified system.
2. If the period is from 3 to 15 years, then write-off occurs in stages: in the first year of work on the simplified tax system, 50% of the cost of the operating system is minus, in the second - 30%, in the third - 20%.
3. Write-off of fixed assets, the SIP of which is more than 15 years old, occurs within 10 years of application of the simplified system in equal amounts.

We invite you to read: How to pay tax on a gift

IMPORTANT! Fixed assets contributed to the authorized capital are not included in expenses (letter of the Ministry of Finance of Russia dated April 11, 2007 No. 03-11-04/2/99).

If the fixed assets are used, but at the date of commencement of validity the simplified payments have not yet been finally paid, they can be written off only after final payment to the seller (subclause 4, clause 2, article 346.17 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated 04/03/2007 No. 03-11- 04/2/85).

Organizations and individual entrepreneurs can switch from the simplified tax system to OSNO by notifying the Federal Tax Service no later than January 15 of the year when they start working under the new regime (clause 6 of article 346.13 of the Tax Code of the Russian Federation).

Since “simplified” companies are subject to certain requirements regarding the cost of the operating system, the number of personnel on staff and the volume of revenue, it is logical that if these requirements are not met, the taxpayer loses the right to use the simplified tax system.

The legislator directly requires an organization that has ceased to meet the necessary requirements to renounce the simplified tax system in paragraph 4 of Art. 346.13 Tax Code of the Russian Federation. Then she will have 15 days to inform the Federal Tax Service about the transition to OSNO or another tax regime (clause 5 of Article 346.13 of the Tax Code of the Russian Federation). Such a message is drawn up in form 26.2-2.

A company or individual entrepreneur will be able to return the simplified status in at least a year (Clause 7, Article 346.13 of the Tax Code of the Russian Federation).

So, the procedure for switching from the simplified tax system to the OSNO is as follows:

1. The taxpayer sends to the Federal Tax Service a notice of refusal to apply the simplified tax system (form 26.2-3). It can also be sent electronically.
2. Accounting records reflect goods sold but not paid for and outstanding accounts payable.
3. Fixed assets are returned to tax accounting. Their size is calculated as the difference between the residual value established during the transition to the simplified system and the costs incurred for them according to the simplified rules.

Transition to simplified tax system 2020 - changes

Those companies that already operate on a simplified basis are also required to comply with the maximum permissible income limit. At the time of writing this article, the limit is set at 150 million rubles. (Clause 4 of Statute 346.13 of the Tax Code). If the limit is exceeded, you will need to switch to OSNO (general system) from the beginning of the quarter.

But these requirements may change. Currently, amendments to the tax legislation are being prepared (Bill No. 90556). If the adjustments are accepted, the limit will remain at the level of 150 million rubles. However, it is allowed to exceed it by 50 million rubles, but not more than 200 million rubles. generally. If this is exceeded, tax will have to be calculated and paid at an increased rate:

• For the “Income” object, the rate will be 8%, not 6%.
• For the object “Revenue minus expenses” - the rate is expected to be 20%, not 15.

If the company exceeds the limit of 200 million rubles, it will need to switch to OSNO. It is planned to change the size criterion in the same manner. Now the maximum allowable figure is 100 people. It is expected to set a new value of 130 people. with higher tax rates. The calculation of increased rates must be carried out from the beginning of the quarter in which the limits were actually exceeded. The amount of advances for the next period will also have to be calculated from the new rates.

Read: Changes in tax legislation from 2020

What does it mean to “go wild”?

Many aspiring businessmen know that small businesses in Russia have the right to operate at reduced tax rates. And the choice of a preferential tax system often occurs even before documents for business registration are submitted to the Federal Tax Service.

If you have not yet decided on the tax system or are in doubt about your choice, we recommend that you contact us for a free consultation.

So, if you have already decided that you want to work on a simplified system, but have not yet submitted documents for registration of an individual entrepreneur or LLC, then together with them you can submit an application for the simplified tax system. And even if registration with the Federal Tax Service has already taken place, but no more than 30 days have passed since that date, then you still have time for the transition.

How to switch to the simplified tax system if you did not know about this possibility, so you ended up on the general taxation system (OSNO)? Unfortunately, the opportunity to transfer for an existing business is only available once a year.

To formalize the transition from OSNO to simplified tax system, you must submit a notification before December 31 of the current year. Then you will be able to apply the simplified version from January 1 of the new year. But, of course, provided that you comply with the limits of income, employees, fixed assets and do not violate other established requirements.

And another procedure for switching to a simplified tax regime is provided for UTII payers. If in the middle of the year they stop the type of activity for which they pay tax on imputed income, then they have the right to switch to the simplified tax system in another line of business without waiting for January 1. In this case, the application can be submitted within 30 days from the date of deregistration as a UTII payer. However, you cannot simply switch from imputation to the simplified tax system for the same type of activity in the middle of the year.

For clarity, we have collected the timing of the transition to the simplified tax system in different situations in a table.

To have an idea of ​​how to switch to the simplified tax system, you need to remember the following. The conditions for switching to the simplified tax system require submitting a corresponding notification to the tax office at your location (residence). This must be done no later than December 31 or within 30 days from the date of state registration. This document should contain the following information:

• the planned object of taxation (all income or that which remains after deducting the costs allowed by the code);
• residual value of fixed assets calculated as of October 1;
• total income for 9 months.

The transition from OSNO to simplified tax system in 2018-2019, as before, is carried out on the basis of a notification in form 26.2-1.

Read more about filing a notification here.

It should be remembered that the procedure for switching to the simplified tax system does not provide for the provision by tax authorities of any documents (certificates, etc.) indicating that the company applies the simplified tax system. However, you can always request written confirmation from your tax office that the company or entrepreneur pays a single tax. Application of the simplified tax system can be refused only if the applicant does not meet the criteria established by the Tax Code of the Russian Federation.

For information on how to request a tax document confirming the application of the simplified tax system, see the publication “Certificate of the simplified taxation system.”

The transition from the OSN to the simplified tax system involves choosing one of two bases for taxation with a single tax. This can be all the income received, or part of it minus the costs incurred. Accordingly, in these two cases there will be different rates for the single tax. If all income is taken as a basis, you will have to pay a single tax on it at a rate of 6% (subjects of the Russian Federation can reduce the rate to 1%). When the base for the single tax is net income, it is paid in the amount of 5 to 15% (the rate also depends on the specific region of the Russian Federation).

Our material “Which object under the simplified tax system is more profitable - “income” or “income minus expenses”?” will help you choose the appropriate option for paying a single tax.

“Flying off the simplified system” is what people call the loss of the right to use the simplified tax system. To do this, you need to exceed at least one of the taxpayer’s performance indicators:

• average number of employees - 100 people;
• the cost of the operating system is 150 million rubles. in 2018-2019;
• the established income limit in 2017-2019 is 150 million rubles;
• start engaging in activities incompatible with the simplified tax system, for example, producing excisable goods, organizing a pawnshop (clause 3 of article 346.12 of the Tax Code of the Russian Federation);
• acquire a branch (in this case, the presence of a representative office or other separate division from 2020 does not interfere with the use of the simplified tax system);
• exceed the 25 percent share of participation of legal entities in the management company of a simplified company;
• become a participant in a simple partnership agreement or trust management of property (clause 3 of Article 346.14 of the Tax Code of the Russian Federation).

If you lose the right to use the simplified tax system, you need to calculate and pay the taxes used under the OSNO. This is done according to the rules that are prescribed in the Tax Code of the Russian Federation for newly created organizations or newly registered individual entrepreneurs. You will not have to pay fines and penalties for late payment of monthly payments during the quarter in which you switched to OSNO.

During the transition period from the simplified tax system to the OSN, it will be necessary to determine:

1. The amount of accounts receivable, since under the cash method and under the accrual method, income will differ.
2. Accounts payable for taxes, employee salaries, and to suppliers.
3. Outstanding accounts payable.
4. Residual value of the property.

All these indicators will help in calculating tax bases and taxes themselves.

What to do if the tax office has reported non-compliance with the conditions of the simplified tax system, read here.

The transition from the simplified tax system can be not only to the special tax system, but also to other tax regimes, for example, UTII, if this corresponds to the type of activity being carried out (clause 2 of article 346.26 of the Tax Code of the Russian Federation). However, such a transition can only be made from the beginning of the next year, since voluntary refusal of the simplified tax system during the tax period is not allowed (clause 3 of article 346.13 of the Tax Code of the Russian Federation). At the same time, you will have to notify the Federal Tax Service of your intention to apply UTII within the first 5 working days of the year (clause 3 of Article 346.28 of the Tax Code of the Russian Federation).

The list of activities to which UTII can be applied is established by local city or district authorities. She also makes a decision regarding the size of the single tax rate, which depends not on the results of economic activity, but on its types.

Organizations that have switched to imputation, just as under the simplified tax system, are required to submit financial statements to the tax office. The set of mandatory taxes for companies and individual entrepreneurs remains the same as under the simplified tax system (payments to extra-budgetary funds, personal income tax), but the simplified tax system tax is replaced by the UTII tax.

Just as with the simplified tax system, income tax, property tax (in the absence of property valued at cadastral value), VAT are not payable on UTII, but if there is a base, land, transport and water taxes are paid.

The tax base for UTII is deciphered in Art. 346.29 Tax Code of the Russian Federation. Adjustment factors are applied to it. The monthly tax amount is determined by multiplying the tax base by 15%. The single tax is reduced by the amount of insurance premiums paid - by 100% (individual entrepreneurs working alone) or 50% (firms and individual entrepreneurs hiring workers).

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Advantages of the simplified tax system

Switching to a simplified system can be a good solution for young businesses or those suffering from a lack of money. This tax system has a bunch of benefits that will allow you to save a good amount on taxes.

1. The enterprise is not obliged to remit VAT, income tax or property tax (with rare exceptions under paragraph 2 of Article 346.11 of the Tax Code of the Russian Federation).
2. The taxpayer is free to choose an object (“Income 6%” or “Income minus expenses 15%”), due to which he can choose a more convenient option for himself.
3. In some regions, tax rates for both objects have been lowered by regional authorities, which makes the simplified tax system even more profitable.
4. Intangible assets and fixed assets are included in expenses if they were purchased within the period of application of the simplified tax system.
5. Accounting becomes noticeably simpler: there is no need to certify the book of income and expenses with the tax office, and it is enough to submit reports once a year.

In addition, a conditional 6 or even 15% simplified tax system will significantly reduce the company’s tax expenses. Especially when you compare them with the 20% rate for an LLC on the general system. However, for individual entrepreneurs, the simplified tax system is also more profitable - you don’t have to deal with VAT and other unpleasant concepts.

When can you switch to the simplified tax system?

Conditions and new criteria for choosing a simplified taxation system are established annually. True, in the last couple of years a certain stability has been established in this sense, i.e. The requirements for simplified taxation system payers do not change fundamentally.

The criteria for applying simplified taxation are specified in Chapter 26.2 of the Tax Code:

• the average number of employees is no more than 100 people;
• the taxpayer does not have the right to engage in certain types of activities (for example, banking and insurance, pawnshops, mining, except for common ones, etc.);
• annual income should not exceed 150 million rubles (a few years ago the limit was only 60 million rubles);
• the organization has no branches;
• the income received by an existing business for 9 months of the current year when switching from OSNO to the simplified tax system from 2020 cannot exceed 112.5 million rubles;
• the residual value of fixed assets does not exceed 150 million rubles (until 2020, the limit was set at 100 million rubles).

Regarding the latter condition, the Federal Tax Service recently expressed an ambiguous opinion. The fact is that in subclause 16 of clause 3 of Article 346.12 of the Tax Code of the Russian Federation, the limit on the residual value of fixed assets is indicated only for organizations. Accordingly, individual entrepreneurs did not comply with this limit and made the transition from the OSNO to the simplified tax system, even having fixed assets for a large amount.

However, in a letter dated October 19, 2020 No. SD-3-3 / [email protected] , the Federal Tax Service noted that in order to be able to switch from OSNO to the simplified tax system from 2020, the limit on fixed assets must be observed not only by organizations, but also by individual entrepreneurs. Moreover, this conclusion of the tax authorities is supported by judicial acts, including decisions of the Supreme Court.

But, of course, the majority of newly registered individual entrepreneurs and LLCs easily fit into the limits on income and number of employees established by the simplified tax system. This means they have the right to switch to a preferential regime and pay taxes at a minimum.

In Art. 346.12 of the Tax Code of the Russian Federation specifies the conditions for changing the tax regime to a simplified one and lists the types of activities in which this cannot be counted on under any circumstances:

1. In order for an organization (or individual entrepreneur) to have the right to become a “simplified” company, it must earn no more than 112.5 million rubles in 9 months, its staff must employ up to 100 people, and the residual value of fixed assets (FPE) must not exceed 150 million rubles
2. The following cannot become “simplified”:

• banks;
• Insurance companies;
• pawnshops;
• investment funds;
• private notaries and lawyers;
• gambling organizers;
• MFO, etc.

Individual entrepreneurs and enterprises that have not notified the Federal Tax Service in a timely manner about the transition to this system cannot apply the simplified system.

As already noted, you can switch to the simplified tax system when creating an enterprise or from the beginning of the calendar year. In addition, the transition to a simplified tax system is also possible when a company or entrepreneur was engaged in activities that give the right to UTII (single tax on imputed income). In this case, the transition to a single tax is carried out in accordance with the general procedure.

When switching from OSNO to simplified tax system, the fate of VAT remains a problematic issue. With the change in the taxation system, the VAT previously claimed for deduction will have to be restored. It should also be remembered that VAT is restored at the rate that was in effect at the time of acquisition of this or that property.

Read about the specifics of calculating VAT when switching to the simplified tax system in the publication “VAT when switching to the simplified tax system with OSNO: accounting and restoration of tax.”

Rights and obligations of organizations and individual entrepreneurs on the simplified tax system

USN, according to section. VIII.1 Tax Code, refers to special tax regimes. The procedure for applying this system is regulated by Ch. 26.2 NC.

What does the transition to the simplified tax system give to a company? About this - in our material “What are the possibilities for optimizing taxes under the simplified tax system?”

The article “Simplified people do not confirm the zero VAT rate” talks about why those using the simplified tax system do not need to confirm the VAT rate of 0%.

And about those taxes and fees that organizations are required to pay under the simplified tax system, read the article “Single tax under the simplified taxation system (STS).”

Read about those cases when a company submits an income tax return using the simplified tax system.

Notification form according to form 26.2-1

Changing the tax regime from OSNO to USN begins with sending a notification to the Federal Tax Service (clause 1 of Article 346.1 of the Tax Code of the Russian Federation). The following must be taken into account:

1. This is done on any day during the year, until December 31, before the year when the organization switches to simplified legislation.
2. The notification is filled out according to form 26.2-1, which indicates ONE, income for 9 months, and the residual value of fixed assets as of October 1.
3. Notice may be sent electronically.

New organizations and individual entrepreneurs can become simplifiers if they submit a notification within 30 days after making the relevant entries in the Unified State Register of Legal Entities and the Unified State Register of Individual Entrepreneurs. For more information on the procedure for notifying tax authorities about a change in the taxation system, see the article Application for the use of the simplified tax system when registering an LLC (nuances).

At the moment, there is no unified notification form that is mandatory for use when switching to the simplified tax system. An organization or individual entrepreneur can use both Form 26.2-1 recommended by the Federal Tax Service of the Russian Federation and one developed personally. However, in order to avoid possible refusals at the level of local inspectorates, we recommend drawing up and submitting a notice of transition to the simplified tax system in form 26.2-1, recommended by the Federal Tax Service.

The recommendation to submit a notice of transition to the simplified system along with the main package of documents is associated with eliminating the risk of transfer to OSNO if an entrepreneur or LLC forgot to submit the specified document, which happens quite often. Postponing the submission of an application “for later” threatens an individual entrepreneur or company with the need to pay three main OSNO taxes, as well as submitting a full package of documents, including tax and accounting reporting.

To prevent a possible outcome, it is recommended to submit Notice 26.2-1 along with all documents submitted for registration.

How to switch to the simplified tax system: stages, sample notification, application form for switching

Stages of transition to simplified tax system:

When to submit a notification about the transition to the simplified tax system, read here.

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Any action significant for the enterprise requires documentation. In order to notify the Federal Tax Service, you will need a notification form about the transition to the simplified tax system, which is filled out according to the KND form 1150001, approved by order of the Federal Tax Service of Russia dated November 2, 2012 No. ММВ-7-3/ [email protected] you can use the link below.

In the application form for switching to the simplified tax system from 2020, you will need to indicate:

• TIN of a legal entity / individual entrepreneur;
• checkpoint, if assigned;
• tax service code where you are registered;
• sign - that is, under what conditions is the transition to the simplified tax system carried out: a newly created or existing company;
• full name of the applicant;
• date of transition to simplification;
• type of tax base (income or income minus expenses);
• residual value of fixed assets and income as of October 1 of the year preceding the year of transition to the simplified tax system;
• contact numbers of legal entities/individual entrepreneurs.

Legal entities and individual entrepreneurs registering with the Federal Tax Service for the first time have 30 calendar days to submit a notification about the application of the simplified tax system. Businessmen with experience in order to switch to the simplified taxation system in 2020 must provide the Federal Tax Service with notification of the transition to a simplified taxation system by December 31, 2019 .

The document will need to be prepared in 2 copies and certified with the manager’s signature and seal (if used). This document does not require notarization.

You can see a sample notification about the transition to the simplified tax system below.

IMPORTANT! The change in the method of taxation is of a notification nature, and in order for the tax authorities to issue an official letter, it will be necessary to coordinate this with the Federal Tax Service at the place of business of the businessman. In any case, the enterprise retains a second copy of the notification with a mark and date of acceptance by the Federal Tax Service.

General information about the simplified tax system 2019

In the simplified taxation system (STS), the payer can choose either “income” or “income reduced by the amount of expenses” as the object of taxation (clause 1 of Article 346.14 of the Tax Code of the Russian Federation). The difference between objects can be seen in the Table.

Table Selecting an object of taxation on the simplified tax system

Values ​​influencing the choice of object of taxation:

1. tax rate: find out whether your region has introduced reduced tax rates for persons using the “income minus expenses” object, and whether you fall under this preferential regime;
2. expenses: calculate the amount of expenses taken into account for the taxable object “income minus expenses”;
3. payments to employees: you should calculate how much the tax will be reduced for the object of taxation “income”.

Let us note that persons who are parties to a simple partnership agreement (joint activity agreement) or a property trust management agreement can only use “income reduced by the amount of expenses” as an object of taxation (clause 3 of Article 346.14 of the Tax Code of the Russian Federation).

The object of taxation can be changed annually. The tax authority should be notified of this fact before December 31 of the year preceding the year in which the change is expected (clause 2 of Article 346.14 of the Tax Code of the Russian Federation). So if you decide to change the applicable tax object starting from 2020, then the notification must be submitted no later than December 30, 2014.

Please note: the object of taxation does not change during the year.

The recommended form of notification (form No. 26.2-6) is given in Appendix No. 6 to the order of the Federal Tax Service of Russia dated November 2, 2012 No. ММВ-7-3/ [email protected] “On approval of document forms for the application of the simplified taxation system.” There is also an electronic format for this form (Order of the Federal Tax Service of Russia dated November 16, 2012 No. ММВ-7-6/ [email protected] “On approval of formats for submitting documents for the application of a simplified taxation system in electronic form”).

By the way, the form is recommended for use, so the notification can be drawn up arbitrarily (letter of the Federal Tax Service of Russia dated April 15, 2013 No. ED-2-3/261).

After submitting the notification in a timely manner, you can apply the new tax object starting next year. There is no need to wait for any answers/permissions from the tax office.

For a sample of filling out the notification, see the Example.

We will fill out a notification to Greyser LLC about changes in the object of taxation under the “simplified” tax system starting from 2020, provided that:

• INN/KPP – 6234015218/623401001;
• date of submission of notification – December 23, 2014;
• a new object of taxation is “income”.

As noted above, simplified IT is income or income minus expenses. This is expressly stated in Art. 346.14 Tax Code of the Russian Federation.

The taxpayer determines the desired object himself, including in the event of changing the existing one to another from the beginning of the tax period, i.e., the new year. Participants in a simple partnership and trust management agreement do not have such a right; they can only use “income minus expenses.”

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These objects in monetary terms constitute the tax base.

What is considered the income of a simplifier:

• proceeds from the sale of goods or services, property rights;
• non-operating income (renting out property, exchange rate differences, transfer of exclusive rights and others specified in Article 250 of the Tax Code of the Russian Federation).

The following are recognized as expenses under the simplified tax system (Article 346.16 of the Tax Code of the Russian Federation):

• purchase, construction and repair of OS;
• acquisition of exclusive rights;
• conducting scientific research and development, patenting;
• making rental payments;
• payment of wages, travel allowances, maternity benefits;
• making contributions to compulsory insurance funds;
• payment of interest on loans;
• maintenance of official transport, etc.

Income and expenses are recognized on the date of actual receipt/transfer of funds.

If income or expenses were received/made in foreign currency, then when drawing up a balance sheet they are taken into account in rubles, calculated at the exchange rate of the Central Bank of the Russian Federation on the date of these transactions.

Revenue unpaid under the simplified tax system must be included in income in the 1st month of application of the simplified tax system (subclause 1, clause 2, article 346.25 of the Tax Code of the Russian Federation, letter of the Federal Tax Service of the Russian Federation dated 01/09/2018 No. SD-4-3/6).

All advances that the “simplified” person received before the transition from the simplified tax system to the OSNO are included in the taxable base for a single tax. This is done even if the goods are shipped in advance after the transition from the simplified tax system to the general taxation system (subclause 1, clause 1, article 251 of the Tax Code of the Russian Federation). The costs of such shipment will reduce the income tax base (letter of the Ministry of Finance dated January 28, 2009 No. 03-11-06/2/8).

Expenses during the transition from the simplified tax system to OSNO (in the first month of application of the new regime) include unpaid debt for services rendered (subclause 2 of clause 2 of article 346.25 of the Tax Code of the Russian Federation), unpaid wages and unpaid insurance premiums (letters from the Ministry of Finance of the Russian Federation dated 05/03/2017 No. 03-11-06/2/26921, dated December 22, 2014 No. 03-11-06/2/66188).

For more information on recognizing expenses, see the article “Contributions accrued under the simplified tax system - income, but paid under the simplified tax system - should they be recognized for income tax?”

The Tax Code of the Russian Federation does not link the possibility of classifying unpaid goods, works, and services as expenses under the simplified tax system with the use of one or another object of taxation under the simplified tax system (“income” or “income minus expenses”). That is, expenses that were incurred when applying the simplified tax system, including with the object “income,” but were paid after the transition to OSNO, are taken into account when calculating income tax.

The procedure for accounting for expenses on goods causes controversy. In order to take into account the costs of them for the simplified tax system, the goods must not only be paid for, but also sold. Therefore, goods that were purchased and paid for under the simplified tax system, and sold after the transition to OSNO, are allowed by senior judges to be taken into account during the period of their sale, that is, when calculating income tax (letter of the Federal Tax Service of the Russian Federation dated 09.01.

2018 No. SD-4-3/6, ruling of the Supreme Court of the Russian Federation dated March 6, 2015 No. 306-KG15-289). Previously, the Ministry of Finance expressed a different position - expenses should be taken into account on the date of transition (letter dated July 31, 2014 No. 03-11-06/2/37697). Now the position of the department coincides with the opinion of the Supreme Court (letter of the Ministry of Finance of the Russian Federation dated November 14, 2016 No. 03-03-06/1/66457, dated 22.01.

If a taxpayer has accounts receivable using the simplified tax system, the return of which is impossible, then losses from their write-off are not taken into account. It cannot reduce the tax base for the simplified tax system (Article 346.16 of the Tax Code of the Russian Federation) and attribute it to expenses for the special tax system (subclause 2 of clause 2 of Article 346.25 of the Tax Code of the Russian Federation) will also not work (letter from the Ministry of Finance dated February 20, 2016 No. 03-11-06 /2/9909, dated June 23, 2014 No. 03-03-06/1/29799).

Read about the procedure for accounting for expenses during a voluntary transition from the simplified tax system to the OSN in the material “From the simplified tax system to the OSN in 2020: adding up last year’s expenses.”

If you find the simplified system beneficial and convenient for yourself, we suggest that you familiarize yourself with it in more detail, for which we turn to the original source, i.e. Chapter 26.2 of the Tax Code of the Russian Federation. We will begin our acquaintance with the simplified tax system with who can still apply this taxation system.

Taxpayers under the simplified tax system can be organizations (legal entities) and individual entrepreneurs (individuals), if they do not fall under a number of restrictions listed below.

An additional restriction applies to an already operating organization, which can switch to a simplified regime if, based on the results of 9 months of the year in which it submits a notice of transition to the simplified tax system, its income from sales and non-operating income did not exceed 112.5 million rubles. These restrictions do not apply to individual entrepreneurs.

The list of categories of taxpayers who do not have the right to work on the simplified tax system is given in Art. 346.12 (3) Tax Code of the Russian Federation. In particular, the following types of organizations cannot work on 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;
• organizations conducting and organizing gambling;
• foreign organizations;
• organizations participating in production sharing agreements;
• organizations in which the share of participation of other organizations is more than 25% (with the exception of non-profit organizations, budgetary scientific and educational institutions and those in which the authorized capital consists entirely of contributions from public organizations of disabled people);
• organizations whose residual value of fixed assets is more than 150 million rubles.

Organizations and individual entrepreneurs also cannot apply the simplified tax system:

• producing excisable goods (alcohol and tobacco products, cars, gasoline, diesel fuel, etc.);
• extracting and selling minerals, except for common ones, such as sand, clay, peat, crushed stone, building stone;
• switched to a single agricultural tax;
• having more than 100 employees;
• those who did not report the transition to the simplified tax system within the time limits and in the manner established by law.

The simplified tax system also does not apply to the activities of private notaries, lawyers who have established law offices, and other forms of legal entities.

To avoid a situation in which you cannot apply the simplified tax system, we recommend that you carefully select OKVED codes for individual entrepreneurs or LLCs. If any of the selected codes corresponds to the activities above, then the tax office will not allow reporting on it to the simplified tax system. For those who doubt their choice, we can offer a free selection of OKVED codes.

Free selection of OKVED

A distinctive feature of the simplified tax system is the possibility for the taxpayer to voluntarily choose the object of taxation between “Income” and “Income reduced by the amount of expenses” (more often called “Income minus expenses”).

The taxpayer can make his choice between the objects of taxation “Income” or “Income minus expenses” annually, having previously notified the tax office before December 31 of his intention to change the object from the new year.

Note: The only limitation on the possibility of such a choice applies to taxpayers who are participants in a simple partnership agreement (or joint activity), as well as a property trust management agreement. The object of taxation under the simplified tax system for them can only be “Income minus expenses.”

For the object of taxation “Income” the tax base is the monetary expression of income, and for the object “Income minus expenses” the tax base is the monetary expression of income reduced by the amount of expenses.

Methods of transition to a simplified taxation system (STS)

According to the general rule set out in paragraph 1 of Article 346.13 and paragraph 1 of Article 346.19 of the Tax Code of the Russian Federation), organizations and individual entrepreneurs (IP) switch to a simplified taxation system (STS) from the beginning of the calendar year.

Special provisions are established for:

• newly created organizations (newly registered entrepreneurs). They have the right to apply the “simplified tax system” from the date of registration with the tax authority (paragraph 1, paragraph 2, Article 346.13 of the Tax Code), if they notify the tax inspectorate of the transition to the simplified taxation system no later than 30 calendar days from the date of registration with the tax authority (this date is indicated in the certificate of registration with the tax authority). In this case, organizations and individual entrepreneurs will be recognized as payers of the simplified tax system from the date of registration with the tax authority;
• taxpayers who are switching to the simplified tax system due to the abolition of another special regime - UTII. They can work on a “simplified” basis from the beginning of the month in which the obligation to pay the single tax ceased (paragraph 2, paragraph 2, article 346.13 of the Tax Code).

When switching to the simplified tax system, you must comply with the restrictions established by law, as well as the procedure for changing the tax regime, which means that you must report the transition to the simplified tax system to the tax authority within a certain time frame and in the prescribed form.

In addition, it is necessary to comply with special rules for accounting for income and expenses of the transition period, which are enshrined in clause 1, paragraph. 1, 3, 4 clause 2.1, clause 4, 5 art. 346.25 Tax Code.

It should also be borne in mind that when working on the simplified tax system, organizations do not have the right to simultaneously use another taxation system (with the exception of UTII). And individual entrepreneurs can combine the simplified tax system with both UTII and the patent taxation system.

That. To switch to a simplified taxation system from January 1 of the next year, organizations and individual entrepreneurs are required to notify the tax office in writing at any time, but no later than December 31 of the current year, and if December 31 is a weekend or holiday, then the end date is considered the nearest the next working day (clause 7, article 6.1 of the Tax Code).

Note : submission of a notification about the transition to the simplified tax system is a mandatory condition for applying the said special regime: organizations and individual entrepreneurs that have not notified about the transition to a simplified taxation system within the established time frame are not entitled to apply the simplified tax system (clause 19, clause 3, article 346.12 of the Tax Code of the Russian Federation). In this case, the courts support the tax authorities (Resolution of the Ninth Arbitration Court of Appeal dated February 20, 2018 No. 09AP-64169/2017 in case No. A40-141438/17)

Letter No. GD-4-3/14234 of the Federal Tax Service of Russia dated August 12, 2015 “On sending a letter to the Ministry of Finance of Russia” clarifies issues related to the application of the simplified tax system and the rules for the transition to other taxation regimes, namely:

• in case of non-compliance with the requirements established by paragraphs 3 and 4 of Article 346.12 and paragraph 3 of Article 346.14 of the Tax Code of the Russian Federation, the taxpayer is considered to have lost the right to use the simplified tax system. In this case, the taxpayer is obliged to inform the tax authority about the transition to a different taxation regime within 15 calendar days after the expiration of the reporting (tax) period. For failure to submit a report, the taxpayer is liable in the manner established by Article 126 of the Tax Code of the Russian Federation;
• when switching to a different tax regime, the taxpayer is obliged to submit a tax return under the simplified tax system no later than the 25th day of the month following the quarter in which he lost the right to apply the simplified taxation system;
• if a tax return is not submitted, the taxpayer bears responsibility in the manner established by Article 119 of the Tax Code of the Russian Federation;
• if the transition to a different taxation regime is not carried out by the taxpayer or was carried out untimely, then for late payment of monthly payments after the end of the quarter in which the transition to a different taxation regime should be made, the taxpayer shall pay penalties and fines in the manner established by the legislation on taxes and fees

The procedure for switching to the simplified tax system with OSN and Unified Agricultural Tax

As a general rule, switch to the simplified tax system from the beginning of the tax period. Because The tax period for the simplification is a calendar year; you can switch to the simplified tax system from January 1 of the next year (clause 1 of article 346.13, clause 1 of article 346.19 of the Tax Code of the Russian Federation). To do this, you must submit a notification to the tax office at the location of the organization (place of residence of the individual entrepreneur).

Notification of the transition to the simplified tax system is submitted to the tax authority no later than December 31 of the year preceding the year from which you plan to apply the simplified tax system. If the last day of the period for filing a notice falls on a weekend or a non-working holiday, then the end of the period is considered to be the next working day (Clause 7, Article 6.1 of the Tax Code).

Notice may be submitted electronically. The procedure for electronic document management in this case was approved by Order of the Federal Tax Service of Russia dated January 18, 2013 No. ММВ-7-6/20. The format for submitting a notification about the transition to the simplified tax system in electronic form was approved by Order of the Federal Tax Service of Russia dated November 16, 2012 No. ММВ-7-6 / [email protected] (Appendix No. 1).

In this case, it is necessary to take into account the restrictions established for the use of simplification.

Former “simplified” people who again want to use the simplified tax system have the right to switch to the “simplified tax system” again no earlier than one year after they lost the right to use the simplified tax system (clause 7 of article 346.13 of the Tax Code). If the right to use the simplified tax system is lost, for example, from 04/01/2017, the organization can switch to the specified taxation regime from 01/01/2019, subject to compliance with the requirements of Chapter. 26.2 of the Tax Code of the Russian Federation (Letter of the Ministry of Finance of Russia dated March 15, 2018 No. 03-11-06/2/16016).

Reporting under the simplified tax system

“Simplers” report quarterly and at the end of the tax period (1 year).

Every year they must submit a tax return to the Federal Tax Service. Art. 346.23 of the Tax Code of the Russian Federation establishes the deadlines for its filing:

• for organizations - until March 31 of the new year;
• IP - until April 30.

If a company or individual entrepreneur stops working for the simplified tax system at their own request, then they submit a declaration by the 25th of the next month after the change in the taxation regime.

If an organization or individual entrepreneur switches to another regime forcibly, then the declaration is submitted before the 25th day of the month after the quarter in which this happened.

In addition to the declaration, the simplified annual reporting includes:

• balance sheet and profit and loss account;
• certificate of average number of employees;
• certificates of accrued wages (2-NDFL);
• statements of contributions to the Social Insurance Fund, Pension Fund, etc.

Results

The transition from OSNO to the simplified tax system is strictly regulated: the law clearly defines the deadlines for submitting documents to change the tax regime and the criteria that taxpayers must meet to switch to the simplified system. Compliance with the requirements of the Tax Code of the Russian Federation will ensure an easy transition to this special regime.

You can switch from the simplified tax system to the general taxation system on a voluntary basis from the beginning of the new year or if you lose the right to a simplified tax system. As a result of this, the volume of both accounting and tax accounting will increase, as well as the number of taxes paid.