Novice businessmen most often formalize their activities in the IP format. This allows them to simplify accounting and tax burden. Knowledge of the specifics of taxation allows individual entrepreneurs to optimize the volume of tax payments.
The peculiarities of taxation for individual entrepreneurs are determined by the tax regime chosen by him. An individual entrepreneur has a choice - to apply STS or OSNO It should be borne in mind that STS can only be used by individual entrepreneurs who have up to 100 employees and an income of up to 60 million rubles. in year.
In some cases, individual entrepreneurs can apply UTII or STS based on a patent. These tax regimes are available only for certain types of activities. For example, for the provision of consumer services or retail.
It is important to note that if there are employees, the individual entrepreneur is obliged to transfer all the established fees to the Pension Fund of the Russian Federation and the Social Insurance Fund, personal income tax from salaries, and also submit appropriate reports. In this case, the taxation of individual entrepreneurs is no different from that provided for organizations.
STS for individual entrepreneurs
Taxation of individual entrepreneurs on the simplified tax system allows you to simplify accounting and pay a single tax instead of personal income tax and VAT. The simplified tax system is available for individual entrepreneurs in two versions. This is the simplified tax system with the object of taxation income minus expenses (with a tax rate of 15%) and income (with a tax rate of 6%). In the first case, the individual entrepreneur must keep records of all costs associated with running a business. In the second, the accounting of expenses is not required, and the tax is paid on the turnover.
The advantage of individual entrepreneurs on the simplified tax system is that those individual entrepreneurs who do not have employees can completely reduce the amount of tax on insurance premiums paid for themselves to the FIU. If the individual entrepreneur has employees, then he also has the right to reduce the tax payable, but not more than by 50%.
Meanwhile, the simplified tax system has a number of disadvantages. The fact is that many large buyers and customers are VAT payers and agree to work with individual entrepreneurs only when providing invoices with allocated VAT. And if an individual entrepreneur provides such a document, then he is obliged to pay VAT to the budget in full without the right to deductions. Therefore, it is advisable to use the STS only if the main circle of IP clients is made up of small companies and individuals.
It should be borne in mind that the use of the simplified tax system does not exempt individual entrepreneurs from paying land, transport, and water taxes.
OSNO for individual entrepreneurs
Individual entrepreneurs using OSNO can cooperate with any category of clients and receive tax deductions. This tax regime implies the payment of personal income tax and VAT.
Personal income tax (the rate is set at 13%) is paid from the difference between income and expenses (also called professional deductions). All expenses must be justified and documented. If documentary confirmation of income is not possible, then income can be reduced by the standard of costs (20% of the amount of income).
VAT is paid on the difference between the amount of input VAT and VAT "offset", which is calculated on the basis of invoices received from suppliers.
Despite the fact that this mode is quite cumbersome, it is best suited for large businesses.
UTII for individual entrepreneurs
Previously, the use of UTII for certain types of activities was mandatory, now only at the request of the individual entrepreneur. The advantage of this tax regime is that the tax is paid not on the basis of real income, but on imputed income using various coefficients. The base rate of return is fixed in the Tax Code.
Individual entrepreneurs on UTII also do not need to document their own expenses and pay VAT and personal income tax.
With the simultaneous conduct of different types of activities, UTII can be combined with the STS and OSNO.
Patent taxation system for individual entrepreneurs
This tax regime is rarely used today. It almost completely duplicates UTII. Under the Patent System, an individual entrepreneur must buy a patent for doing business. Its cost is determined by the state and does not depend on the real amount of income and expenses.
The patent system is characterized by a rigid framework for its use - a limited amount of revenue (up to 60 million) and the number of employees up to 15 people. Its other disadvantage is that since 2013 it is impossible to reduce the tax on transferred insurance premiums (unlike UTII and STS).
