The most important stage in starting a business is the correct choice of the taxation system. The existing legislation on taxes and fees allows an individual entrepreneur to choose the most suitable tax payment system.
Instructions
Step 1
The traditional or general taxation system requires an individual entrepreneur to pay all necessary taxes, if he is not exempt from them. With this scheme, the entrepreneur must pay the following taxes and fees:
• personal income tax (personal income tax);
• value added tax (VAT);
• unified social tax (UST);
• water tax;
• tax on gambling business;
• National tax;
• tax on property of individuals;
• transport tax;
• land tax;
• insurance contributions for compulsory pension insurance;
• and etc.
Almost all entrepreneurs pay personal income tax, VAT, UST and property tax. The payment of the remaining taxes depends on the activities in which the individual entrepreneur is engaged.
Step 2
In addition to the general taxation system, there are several tax regimes, one of them is the simplified taxation system (STS). This system is voluntary and provides for the payment of a single tax, while the payment procedure remains the same. The simplified tax system exempts individuals from personal income tax, VAT, unified social tax and property tax.
Step 3
An entrepreneur can pay taxes according to the UTII system (unified tax on imputed income). In this case, the tax is paid only from the amount of income imputed to them, established by law. Such a taxation system provides for the payment of the following taxes:
• ESN, • personal income tax, • Tax on property of individuals, • VAT.
At the same time UTII does not exempt from payment of transport, land taxes, as well as state duties, excise taxes, etc. In addition, the taxpayer is obliged to make insurance contributions, social insurance contributions in case of accidents and pay personal income tax for their employees. An entrepreneur can use the UTII system if:
• In the territory where the activity is carried out, UTII has been introduced, • The activities of an entrepreneur are mentioned in local legal acts, among the types of entrepreneurial activities subject to this tax.
