The simplified taxation system (STS) is a special tax regime introduced in Russia in 2012. Today it is the most popular regime among small and medium-sized businesses, due to its inherent advantages.
Terms of use of the simplified tax system
The purpose of the development of the simplified taxation system was to reduce the tax burden on business, as well as to facilitate accounting. To apply the simplified tax system, an individual entrepreneur or organization must submit a notification application when registering a new business. You can also switch to the simplified tax system from another tax regime (from the OSNO or UTII) until December 31 of the previous year.
To apply the simplified tax system, an individual entrepreneur or an organization must meet a number of conditions. The number of employees should not exceed 100 people, the annual income should be less than 60 million rubles, and the residual value of fixed assets - up to 100 million rubles. It is forbidden to apply the simplified tax system and organizations with a share in it of other companies of more than 25%, as well as companies with branches.
Subjects and objects of taxation under the simplified tax system
Like any other tax regime, the STS has its own objects and subjects.
Individual entrepreneurs and organizations that have switched to it in accordance with the established procedure can act as subjects of the simplified tax system. At the same time, the use of the simplified tax system is not available to a number of market participants. Among them are banks, insurance companies, private pension funds, pawnshops, brokers, investment funds, notaries. Also, access to the use of the simplified tax system is closed for companies operating in the mining industry and in the gambling business.
The legislation provides for two types of objects of taxation - income (the tax rate is 6%), as well as income reduced by expenses (the default rate is 15%). The taxpayer can choose the optimal tax regime for himself.
Tax base under the simplified tax system
In case of a tax object, income is the tax base of the proceeds, any expenses are not taken into account. When applying the simplified tax system with a rate of 6%, the tax can be reduced on insurance premiums to extra-budgetary funds for employees, but no more than half.
When the object of taxation is income minus expenses, it is not revenue that is taken into account, but profit. Costs are strictly limited and must be economically justified and documented. Moreover, if the amount of the calculated tax is less than 1% of the amount of income, then a minimum tax of 1% is paid.
The single tax of the simplified tax system is calculated as the tax rate multiplied by the tax base. The taxpayer must determine the amount of tax payable independently.
If a taxpayer combines several tax regimes (for example, STS and UTII), he needs to keep separate accounting records.
The tax period for the simplified tax system is a year. At the same time, during the year, the taxpayer is obliged to make advance tax payments for the first quarter, six months and three quarters. They are calculated on an accrual basis and are paid no later than the 25th day of the first month following the reporting one.
