One of the most important points for an entrepreneur at the beginning of his activity is the correct and balanced choice of the taxation system. The current legislation provides for several taxation systems for individual entrepreneurs. The procedure for applying all these systems is governed by the norms of the second part of the Tax Code of the Russian Federation.
It is necessary
Tax Code of the Russian Federation
Instructions
Step 1
Study the taxation systems that an individual entrepreneur has the right to apply in carrying out his activities. Each of the systems has its own characteristics, tax payment deadlines and reporting forms. The entrepreneur has the right to choose the taxation and reporting system.
Step 2
Consider the possibility of using the general taxation system (OCNO) in your activities. Under such a system, an individual entrepreneur pays all the necessary taxes and payments, if he is not exempted from payment on appropriate grounds. Typically, this mode is used in relatively large enterprises.
Most of the taxes and contributions provided by the general taxation system are calculated and paid by you only on the condition that the company is engaged in a certain type of activity and thus there is a taxable base. Traditionally, individual entrepreneurs calculate and pay value added tax (VAT), personal income tax (PIT), property tax, insurance contributions to the Pension Fund, Territorial Compulsory Health Insurance Fund, Federal Compulsory Health Insurance Fund.
Step 3
The next type is the simplified taxation system (STS). Its use is voluntary. As an individual entrepreneur, you are free to decide on the application of the simplified tax system and the choice of the object of taxation.
Step 4
If you have chosen the simplified taxation system, then you assume the obligation to pay the single tax and are released from the obligation to pay:
- value added tax, with the exception of VAT payable when importing goods into the customs territory of Russia and VAT paid in accordance with Art. 174.1 of the Tax Code.
- tax on income of individuals (in relation to income received from entrepreneurial activity), with the exception of the tax paid on income taxed at tax rates provided for in paragraphs. 2, 4, 5 Art. 224 of the Tax Code of the Russian Federation.
- tax on property of individuals (in relation to property used for entrepreneurial activity).
Step 5
When choosing a simplified taxation system, make sure that the selected type of activity is not among those for which it is prohibited to apply the simplified taxation system. A list of these species is given in Art. 346 clause 2 of the second part of the Tax Code of the Russian Federation.
Step 6
For some types of activities established in a specific region, it is possible to apply a special regime, namely the USN based on a patent. In this case, the region establishes a fixed cost of the patent, and you, as an entrepreneur, pay it in installments during the term of the patent. The patent is issued for up to one year. Under this taxation system, you will keep a book of income and expenses, but you are not required to submit a declaration. It is possible to hire employees (no more than five people per year). A patent is valid only in the territory where it was issued.
Step 7
If you are starting an activity as an individual entrepreneur, choose one of the types of the simplified taxation system. An exception is such a type of activity as wholesale trade or the need to transfer invoices to customers for VAT refunds from the budget.
