Changing the tax system
If an individual entrepreneur is making a transition from the patent system to the simplified tax system in connection with the early termination of the activity in respect of which the patent was applied, an application for deregistration must be submitted in form No. 26.5-4. When switching from the general system, no application for deregistration is required to be submitted to the tax office. The transition from the general system, simplified tax system, PSN to UTII UTII can be combined with the general, simplified and patent taxation systems. “Simplified people” can voluntarily switch to UTII only from the beginning of the new year. That is, from January 1, 2020. But you can switch from the general taxation system to UTII from any date of any month (clause 3 of Article 346.13 of the Tax Code of the Russian Federation). When switching from PSN, if the patent has expired, the individual entrepreneur also has the right to switch to UTII at any time.
Conditions for applying the simplified tax system
In order to continue to apply the simplified tax system in its activities, the taxpayer must meet the following conditions:
- The average number of employees is less than 100 people.
- Revenue - no more than 150,000,000 rubles.
Read about income limits for applying the simplified tax system in the article “Income limits when applying the simplified tax system.”
- The residual value of the fixed assets must be less than RUB 150,000,000.
There are also a number of certain conditions (Article 346.12 of the Tax Code of the Russian Federation) under which the simplified tax system cannot be applied. In particular, we are talking about some types of activities in which working for the simplified tax system is prohibited. In addition, if an organization has branches or the share of other organizations in its authorized capital is more than 25%, then it cannot apply the simplification.
In order to be able to change the object of taxation (move) from the simplified tax system of 6% to the simplified tax system of 15%, it is necessary to comply with the general conditions under which the simplified tax system can be applied. The legislation does not provide for any additional restrictions for single tax payers.
Changing the object of taxation: tax consequences
Filling out form 26.2‑6 “Notification of a change in the object of taxation” The notification form must include information about the taxpayer - indicate the TIN, KPP (for legal entities), the name of the organization (or the full name of the individual entrepreneur). Number of the tax office where the document is submitted. The year from the beginning of which the object of taxation of the simplified tax system will change. Below the number you should select the desired option for the object of taxation (income or income reduced by expenses). At the bottom left you need to put “1” if the notification is submitted personally by the head of the organization or an individual entrepreneur. In this case, below is the name of the manager (for organizations), the phone number, signature and date. If the notification is submitted by a representative of the taxpayer, then you should put “2”, indicate the full name of the representative and details of the power of attorney on the basis of which he acts.
Transition from OSNO to simplified tax system
Let’s assume that at the time of registration, for example, in the summer of 2020, the individual entrepreneur was unable to decide on the taxation system, or missed the 30-day deadline for submitting a notice of transition to the simplified tax system (the period is counted from the date of registration of the individual entrepreneur)
The legislator has established practically the only condition for such a transition for individual entrepreneurs - the average number of employees of an individual entrepreneur should not exceed 100 people.
You can submit a Notice of transition to the simplified tax system from 2020 until December 31, 2017. Due to the fact that December 31st falls on a holiday, the deadline for submitting an application has been postponed to January 09, 2019.
The Notification can be submitted either electronically through the TCS operator or in paper form (in person, through a representative with a notarized power of attorney, or by registered mail).
When filling out the Notification of transition to the simplified tax system, the individual entrepreneur must decide on the taxation object suitable for his activities under the simplified tax system (the object must be indicated in the Notification).
- Income. Tax rate 6%.
- Income reduced by expenses. Tax rate 15%.
The indicated rates in some constituent entities of the Russian Federation may be set in smaller amounts.
The second mode should be chosen only by individual entrepreneurs whose level of expenses is significant, otherwise this mode is not profitable. A significant level of expenses is considered to be a level of expenses of more than 60% of income (
We are changing the tax system. what should be taken into account?
Tax Code of the Russian Federation). Changing the object of taxation 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. MMV-7-3/ “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/ “On approval of formats for submitting documents for the application of the simplified taxation system in electronic form”). https://youtu.be/9W9EeWx8a-s
Transitional provisions when changing the object of taxation
You can change the object of taxation under the simplified tax system every tax period, that is, every year. And there would be no problems if all mutual settlements and mutual obligations between the “simplified” and its counterparties, debtors and creditors were carried out as of December 31, and all costs could be taken into account in this tax period. But in practice this is not the case, which is why questions arise regarding accounting for income and expenses for tax purposes when changing the object of taxation.
