The essence of the simplified taxation system is to establish only two objects of taxation, fixed tax rates, simplicity of calculating and paying tax. At the same time, organizations and entrepreneurs are exempt from other types of taxation with rare exceptions.
A simplified taxation system usually involves a significant reduction in the costs of an organization, an entrepreneur with small and medium volumes of activity. You can switch to this system, if its conditions are met, immediately after the registration of a company or an entrepreneur with the tax authority, before each next tax period (calendar year). The object of taxation is chosen by everyone independently, in this capacity it can act in the first option - the income received, in the second - income, reduced by the amount of expenses. The established tax rate directly depends on the selected object. So, in the first case, the specified rate will be set at six percent, in the second - at fifteen percent.
What are entrepreneurs exempted from on the simplified tax system?
Organizations that have chosen a simplified taxation system receive certain advantages, since they are exempted from the obligation to pay taxes on the profits of organizations, value added, property of organizations. Entrepreneurs who use such a system are also exempt from paying personal income tax, value added taxes, property of individuals. At the same time, the specified system does not exempt from the obligation to pay other types of taxes, perform other obligations related to the conduct of entrepreneurial activities, paperwork, and reporting.
How to start using the simplified tax system?
The application of the simplified taxation system is allowed from the very beginning of the entrepreneurial activity. Also, an organization or an entrepreneur can switch to the simplified tax system from the general regime. In the first case, it will be necessary to send a notification of the established form to the tax service within a thirty-day period after registration (in practice, it is usually filed immediately upon registration), in the second, to notify tax officials in writing no later than December 31 of the previous calendar year. At the same time, it is important to comply with the established restrictions, one of which is the size of the maximum income, which should not exceed sixty million rubles during the reporting period for entities applying the simplified tax system. Comprehensive regulation of the simplified taxation system is provided by Chapter 26.2 of the Tax Code of the Russian Federation.
