Accounting for the difference between the minimum tax and the tax under the simplified tax system Income - Expenses

Many businessmen use a simplified taxation system because it allows them to significantly reduce payments to the budget. Let’s talk about one of the simplified options - the simplified tax system “Income minus expenses”.

What is the simplified tax system “Income minus expenses”

• Tax rate - up to 15% (20%)
• Tax calculation - what income and expenses to take into account
• Reporting - declaration, KUDiR and accounting

Who is suitable for simplified taxation system 15%

What taxes can you avoid paying with simplification?

Who can apply the simplified tax system

How to pay tax under the simplified tax system “Income minus expenses”

Pros and cons of the simplified tax system “Income minus Expenses”

What is the simplified tax system “Income minus expenses”

The tax base with this simplified version is determined as the difference between income and expenses. This is the main difference from the simplified tax system “Income”, in which costs do not affect the amount of tax.

Tax rate - up to 15% (20%)

The basic tax rate of the simplified tax system “Income minus expenses is 15%. Therefore, this option is often called simply “STS 15%”. However, regional authorities have the right to reduce the rate for this type of simplified payment to 5%, and in Crimea and Sevastopol - to 3%.

The tax rate that is currently in force in your region can be found at the end of the page about the simplified tax system on the Federal Tax Service website.

Since 2022, the “transition period” rule has been in effect (Federal Law No. 266-FZ dated July 31, 2020). For 2022, the rules are as follows: if a simplifier violates the first threshold of limits under the simplified tax system: revenue exceeds 164.4 million rubles, but not more than 219.2 million rubles, and the number of employees exceeds 100 people, but not more than 130 people, then the tax rate will increase up to 20%. If a simplifier violates the second threshold of limits, he will lose the right to work on the simplified tax system.

Tax calculation - what income and expenses to take into account

The simplified “Income minus expenses” method of calculation is similar to the income tax under the general tax system. However, there are also significant features:

1. Income and expenses are accounted for “on payment”, that is, upon receipt or payment of money.
2. The list of costs that can be recognized as expenses is closed. If an expense is not specified in Article 346.16 of the Tax Code of the Russian Federation, then it cannot be deducted from the taxable base, even if it is economically justified. Similarly, the tax office may refuse to account for expenses that are not supported by documents.
3. All earnings from a business are considered income. This is usually revenue from the sale of goods or services. But there are also incomes that are not related to business and are still taken into account in the calculations - non-operating income (Article 250 of the Tax Code of the Russian Federation).
4. In any case, the tax should not be less than 1% of revenue. If the calculation “on a general basis” resulted in a smaller amount, then you need to pay a minimum 1% tax.

Reporting - declaration, KUDiR and accounting

On the simplified tax system “Income minus expenses” there is one tax report required for everyone - the annual tax return. It is submitted once: organizations until March 31, and individual entrepreneurs - until April 30. The declaration form was approved by order of the Federal Tax Service of the Russian Federation dated February 26, 2016 No. ММВ-7-3/ [email protected]

Entrepreneurs are exempt from accounting reports, but organizations using the simplified tax system are required to submit them. If a company fits the restrictions of the simplified tax system, it belongs to small enterprises, which means it receives the right to conduct accounting in a simplified form:

• use an abbreviated chart of accounts;
• use a simplified form of accounting;
• do not submit statements of cash flows and changes in capital.

The organization's accounting reports are submitted to the tax office by March 31.

If a simplifier has employees, then they also need to submit regular reports: information on the number of employees, calculations of insurance premiums, personal income tax, SZV-M, SZV-STAZH, 4-FSS and others.

You also need to keep a book of income and expenses (KUDiR) on the simplified tax system. She does not need to submit a tax return until she sends an official request.

USN. Accounting for personal income tax from employee salaries

We work on the simplified tax system (income minus expenses). Personal income tax is not included in expenses. But this is part of the salary, which, when paid, is included in expenses. How about the program automatically includes personal income tax in expenses when payments are made to the current account?

In accordance with paragraphs 22 clause 1 art. 346.16 Tax Code of the Russian Federation

when determining the object of taxation, a taxpayer applying the simplified tax system with the object of taxation in the form of income reduced by the amount of expenses,
has the right to reduce the income received by the amount of taxes and fees paid
in accordance with the legislation of the Russian Federation on taxes and fees.

Organizations using the simplified tax system are not exempt from performing the duties of tax agents

provided for by the Tax Code of the Russian Federation (
clause 5 of Article 346.11 of the Tax Code of the Russian Federation
).

Art. 226 Tax Code of the Russian Federation

It has been established that the calculation of amounts and payment
of personal income tax
are carried out in relation to all income of the taxpayer, the source of which is
the tax agent
.

Tax agents are required to withhold the accrued tax amount directly from the taxpayer’s income

upon actual payment.

The tax agent withholds the accrued amount of personal income tax from the taxpayer at the expense of any funds paid by the tax agent to the taxpayer upon actual payment of the specified funds to the taxpayer.

Payment of personal income tax at the expense of tax agents is not allowed

.

In this regard, the amounts of personal income tax withheld from the income of employees by the organization

applying the simplified tax system
cannot be included in the expenses
provided for
in paragraphs.
22 clause 1 art. 346.16 Tax Code of the Russian Federation .

This opinion is expressed by the Ministry of Finance of the Russian Federation (letters dated November 24, 2009 No. 03-11-06/2/246, dated June 25, 2009 No. 03-11-09/225).

According to paragraphs 6 clause 1 and clause 2 art. 346.16 Tax Code of the Russian Federation

Taxpayers using the simplified tax system, when determining the tax base, can
reduce the income received for labor costs
in the manner prescribed by
Art.
255 Tax Code of the Russian Federation .

In accordance with Art. 255 of the Tax Code of the Russian Federation to labor costs

include
any accruals to employees
provided for by the laws of the Russian Federation, employment agreements (contracts) and (or) collective agreements.

Personal income tax amounts are taken into account as part of accrued wages.

.

Art. 346.17 Tax Code of the Russian Federation

It has been established that
expenses
of the taxpayer are recognized
after their actual payment
.

Labor costs are taken into account

at the time of repayment of the debt by writing off funds from the taxpayer’s current account, payment from the cash register, and in the case of another method of repayment of the debt - at the time of such repayment.

Expenses for paying taxes and fees are taken into account in the amount actually paid by the taxpayer.

Thus, personal income tax amounts are taken into account in labor costs

under the simplified tax system
after the actual payment
of income to the employee and the transfer of tax to the budget (
clauses 1, 3, clause 2 of Article 346.17 of the Tax Code of the Russian Federation
) (letter from the Federal Tax Service for Moscow dated September 14, 2010 No. 16-15/ [email protected ] ).

Since the transfer of wages and personal income tax is not always carried out on the same day, on the basis of different primary documents, these transactions have different contents, it is advisable to reflect these transactions in the Income and Expenses Accounting Book separately

.

Who is suitable for simplified taxation system 15%

If we compare the simplified tax system “Income” and the simplified tax system “Income minus expenses”, then the first has a lower tax rate, and the other has more ways to reduce the tax base. In general, without taking into account benefits and deductions, the “Revenue minus expenses” option will be beneficial if costs exceed 60% of revenue.

Example. The company's revenue for the year is 100 million rubles, expenses are 60 million rubles. For the “Income” option, the tax amount will be:

STS1 = 100 × 6% = 6 million rubles.

When using the “Income minus expenses” object:

STS2 = (100 – 60) × 15% = 40 × 15% = 6 million rubles.

In practice, the calculation for each business must be carried out individually, taking into account regional tax rates and cost structure.

For example, in Buryatia the simplified tax rate for “Income” and “Income minus expenses” is the same - 5%. In addition, when using the “Income” object, you can apply tax deductions (Article 346.21 of the Tax Code of the Russian Federation).

Mechanism for reducing tax on the simplified tax system

When using minus expenses as an object of income, a company can use the entire amount of accrued wages to reduce the tax base, attributing it to labor costs.

Keep in mind: entering this value into costs as a separate line will lead to overestimation of costs, which is unacceptable for the correct calculation of taxes on the simplified tax system. In this case, claims from inspectors cannot be avoided. This rule applies to calculating personal income tax under the simplified tax system: income minus expenses .

If an organization has chosen only income as an object, it cannot take into account personal income tax expenses to adjust the tax base. To the question whether personal income tax is included in expenses under the simplified tax system , in this case only a negative answer can be given.

Do not forget that if the tax agent, having the opportunity, did not withhold the amount of personal income tax and did not transfer the funds to the treasury, the inspectors have the right to collect a fine from him. Its value will be 20% of the unpaid amount.

In order to avoid problems and timely submit the necessary reports to the tax authorities, it is better to assign this responsibility to a specific specialist or use the services of a third-party organization.

What taxes can you avoid paying with simplification?

Tax accounting under the simplified tax system “Income minus expenses” differs from the general system. Simplified business is exempt from:

1. Income tax (for LLC) or personal income tax (for individual entrepreneurs).
2. Property tax, with the exception of objects that are taxed at cadastral value.
3. VAT, except for imports and performance of duties as a tax agent.

Simplified people pay other taxes on a general basis if they have a taxable base. For example, land owners pay land tax, and vehicle owners pay transport tax.

Benefits on insurance premiums in 2022 can only be used by non-profit and charitable organizations using the simplified tax system. They are exempt from contributions to the Social Insurance Fund and the Federal Compulsory Medical Insurance Fund.

All other simplifiers must pay mandatory insurance payments on a general basis.

At what point is personal income tax included in expenses under the simplified tax system?

Labor costs are incurred in the accrual month. But a company using the simplified tax system will be able to accept them for deduction only at the time of actual payment (clause 2 of article 346.17 of the Tax Code of the Russian Federation).

The tax is withheld on the day the income is paid to an individual, unless otherwise determined by the norms of the Tax Code of the Russian Federation (for example, when paying wages in kind, the tax is withheld from it during the next monetary settlements with this person). The transfer of the personal income tax amount to the budget is allowed to be made later, without violating the deadlines specified in Art. 226 Tax Code of the Russian Federation:

• when issuing wages and other remunerations - no later than the next working day after the day of payment;
• when paying vacation pay and sick leave - until the end of the month in which these payments were made.

You can include personal income tax in expenses under the simplified tax system “income minus expenses” on the day the withheld amount is transferred to the budget.

Example

Primus LLC applies the simplified tax system of 15%. For January 2022, staff salaries were accrued in the amount of 140,000 rubles, personal income tax amounted to 18,200 rubles. Funds in the amount of RUB 121,800 are transferred to employee cards. (140 00 – 18 200) the company transferred on Friday, February 7. Since 02/08/2020 was a day off, 18,200 rubles. The LLC transferred the withheld tax to the budget only on Monday, February 10.

The company made entries in the KUDiR about the expenses incurred:

• 02/07/2020 – for the amount of salary paid 121,800 rubles.
• 02/10/2020 – for the amount of tax paid 18,200 rubles.

It is allowed to take into account in current expenses personal income tax withheld from earnings for previous periods and transferred in the next tax period. For example, an LLC issues salaries to employees on December 31, 2020, and transfers personal income tax from it in January 2022. In this case, the simplified people can include the amount of income tax in expenses in January 2022.

Who can apply the simplified tax system

Both legal entities and entrepreneurs have the right to use the simplified form.

When planning to switch to the simplified tax system, first check whether your business belongs to the “forbidden” categories (clause 3 of article 346.12 of the Tax Code of the Russian Federation). In particular, they do not have the right to use simplified language:

• financial organizations (banks, insurers, pawnshops, funds, microfinance organizations);
• producers of excisable goods;
• gambling organizers;
• companies with branches.

If everything is fine with the type of business, then check its scale and composition of owners:

1. For an LLC using the simplified tax system “Income minus expenses”, the share of legal entities in the authorized capital should not exceed 25%.
2. The residual value of fixed assets should not exceed 150 million rubles.
3. The average number of employees should not be more than 100 (130) people.
4. Revenue should not exceed:

• for those who plan to switch to the simplified tax system from 2023 - 123.3 million rubles for 9 months;
• for those who already work on the simplified tax system - 164.4 (219.2) million rubles per year.

What to do with income taxes

With the right choice of taxation system, you can significantly reduce your tax burden without going beyond the legal framework. Tax legislation provides for a large number of benefits, the skillful use of which will lead to a positive result after just a few months of their application.

Many companies with relatively small income and a small number of staff naturally choose the “simplified” approach. In this case, the simplified tax replaces several mandatory contributions to the budget. And the accountant has to fill out fewer documents, and it’s easier to submit reports.

Under the simplified tax system, an enterprise is exempt from paying income tax and property tax. And in some cases there is no need to remit VAT. The exception is for importers of goods.

When applying special regimes, organizations and individual entrepreneurs are required to make timely insurance contributions to the funds.

If a company has chosen income reduced by costs as an object of taxation under the simplified system, it can thereby reduce the size of the tax base. The list published in the Tax Code serves for these purposes. Meanwhile, an LLC using the simplified tax system is not exempt from personal income tax .

Article 346.14 of the Tax Code gives the right to reduce the amount of the tax base by fees and taxes already paid.

However, firms and individual entrepreneurs who have chosen the “simplified tax” cannot be exempted from the duties of a tax agent for the transfer and payment of personal income tax in relation to employees receiving income in this company.

The tax agent can withhold from wages the necessary amount to deduct tax at the time of payment of wages. The law does not allow the possibility of paying income taxes from company funds.

For this reason, it is impossible to include amounts of personal income tax in the “simplified” expenses to reduce the tax base. Personal income tax is not included in expenses under the simplified tax system .

Article 346.16 of the Tax Code states that those who have chosen the simplified regime have the right to reduce the amount of costs by the amount of wages for their employees. And in this case, personal income tax amounts are included in the amount of accrued wages.

How to pay tax under the simplified tax system “Income minus expenses”

The tax period under the simplified tax system is a calendar year. Organizations must pay their budget by March 31 of the following year. The simplified procedure for individual entrepreneurs “Income minus expenses” provides for payment of tax by April 30.

But, in addition to the final payment, all businessmen must make quarterly advance payments throughout the year. The deadline for their payment is the 25th day of the month following the reporting period.

The advance payment for each period is calculated in the same way as the amount for the year as a whole. The difference between revenue and costs should be multiplied by the tax rate. The difference is determined by the cumulative total from the beginning of the year. If we are talking about an advance for 6, 9 months or an annual amount, then you need to subtract the previously listed advances.

The minimum tax is not paid during the year. If at the end of the interim period the amount payable is less than 1% of revenue, then it should be transferred. If a loss is incurred during the reporting period, then there is no need to pay an advance.

Example.

The businessman’s income and expenses for 2022 by quarter are shown in the table. For the calculation we will use the standard rate of 15%.

thousand roubles.

We will also summarize the calculation of advances and tax amounts in a table.

*cumulative total since the beginning of the year