When an entrepreneur registers as an individual entrepreneur, he has a month to choose a tax regime. Otherwise, he will have to pay taxes according to the general system - the highest possible. Instead, in most cases it is better to choose a special regime: simplified taxation (STS), patent (PSN), professional income tax (NPT) or unified agricultural tax (UST). We tell you how to choose the right system, what taxes and contributions individual entrepreneurs pay in 2021, and what has changed for them.
Everything in order:
- What changed
- Insurance premiums for yourself
- Salary taxes
- How to choose a system
- What modes are there?
- BASIC
- simplified tax system
- PSN
- Unified agricultural tax
- NAP
What's changed in 2022
UTII was cancelled. From January 1, 2022, Russia abolished the single tax on imputed income (UTII) - this is a fixed tax that was paid four times a year. Officials considered that this tax was underestimated and was used for gray schemes. It was replaced by a patent and self-employment.
Self-employment has been introduced in all regions. Professional income tax (PIT) was introduced for self-employed citizens and individual entrepreneurs without employees. It was initially available in several test regions, and from July 2022 - in all regions.
Tax holidays have been extended. Until 2023, individual entrepreneurs using simplified tax laws and patents have the right not to pay tax for up to two years after registration. But this does not work in all regions and only in certain areas, such as production and science. The full list of restrictions is specified in the Tax Code.
The delay in using online cash registers has expired. As of July 1, 2022, the deferment for cash registers has ended. It was valid for individual entrepreneurs without employees who:
- provide services,
- perform work,
- sell products of their own production.
Now all individual entrepreneurs who work with individuals are required to purchase and register an online cash register and issue checks to clients. The exception is NPA, but this tax regime is not suitable for everyone.
Tax system and employees
The number of officially employed workers directly influences the choice of the scheme under which a businessman-entrepreneur will work. For private owners who have chosen a simplified approach, this is a maximum of 100 people. If there are more people, a businessman simply does not have the right to use this mode.
The most difficult thing in this case is for those who open a project under a patent. They are allowed to hire no more than 5 workers.
Often businessmen do not involve outside forces at all. As a rule, they work in the retail or service sector and independently represent the manager and employee.
Insurance premiums for yourself
Fixed. In addition to taxes, individual entrepreneurs pay annual pension and medical contributions for themselves. Moreover, the size of such contributions does not change depending on the taxation system for individual entrepreneurs and income. In 2022, the state did not raise the amount of contributions and left them at the same level - 40,874 rubles per year.
From this amount the individual entrepreneur pays:
- for pension insurance - 32,448 ₽,
- for medical - 8426 ₽.
These fees are paid by all individual entrepreneurs, regardless of whether they work or not, simply upon registration. These contributions must be transferred no later than December 31 of the year for which the businessman pays them. In some cases, individual entrepreneur taxes can be reduced by the amount of contributions in 2021.
Individual entrepreneurs who work as self-employed are not required to pay contributions, but can do so voluntarily.
Additional. This is 1% of the tax over 300,000 rubles per year. For example, if an individual entrepreneur’s income for the year was 2 million rubles, he will pay another 17,000 rubles:
(2 000 000 — 300 000) * 1% = 17 000
These contributions must be paid no later than July 1 of the year following the reporting year.
Selecting a cash register
By law, private owners are required to use standard accounting equipment in their work. When choosing a CCP, you should take into account that devices are divided into three types:
- autonomous - push-button type, operating from a fixed Internet connection;
- smart terminals - online devices in the form of a tablet with a connected printer;
- fiscal - registration devices that allow you to print receipts that allow the installation of a memory drive.
The first option is low cost. But if there is a need to update the software (at the time of amendments to Federal Law 54), you have to contact specialists. It is impossible to flash the program yourself. When deciding on software to automate an organization’s internal processes, pay attention to Cleverence products. Mobile accounting tools allow you to achieve production goals much more efficiently and quickly.
Fiscal devices require a computer, laptop or tablet with an Internet connection and special software. Not the cheapest option. If you want to combine high efficiency with cost savings, it is better to use smart terminals.
As is easy to see, a novice entrepreneur will have to deal not only with the pressing issue: what taxes are there for individual entrepreneurs and what the tax conditions under existing systems provide, but also solve a number of important problems.
But all these difficulties are not a reason to refuse to organize your own business. Number of impressions: 4314
How to choose a tax system for individual entrepreneurs
You must decide on the system within the next 30 days from registration. If this is not done, the individual entrepreneur will automatically work for the OSNO with the highest tax.
Select modes that fit the restrictions. First of all, pay attention to patent and NAP - potentially the most profitable regimes for a new entrepreneur. If you work in agriculture, choose Unified Agricultural Tax.
When none of the above works, choose a simplified one. In rare cases, if you are going to work with corporations, you can leave OSNO.
Choose a tax system for individual entrepreneurs that is easier to work with. Consider the volume of reporting: choose the one where you need to report less often. In addition to a patent and self-employment, minimal reporting is required on a simplified basis.
Calculate which system is cheaper. This depends on the type of activity, location and expenses of the individual entrepreneur. Next, let's look at what to look for.
Online cash register on a smartphone
To operate as an individual entrepreneur, you need an online cash register. You already have it in your smartphone, all you have to do is download the application and buy a fiscal registrar.
The application manages sales, and the registrar prints and sends checks to the tax office.
General characteristics of the business area
If we make an unbiased assessment of the current business environment, it will become obvious that it is not a particularly popular area of activity for businessmen. According to statistics, about 3% of citizens of the Russian Federation do not plan to obtain the status of an individual entrepreneur, even in the long term. And if you look at the results of sociological research conducted in 2018-2019, you can see that the number of people wishing to open their own business decreased by 2%.
Today the situation is only getting worse. Fewer and fewer people are interested in the opportunity to organize their own business in the field of small and medium-sized enterprises. In addition, 20% of those who already work in this capacity do not make plans to expand and create additional jobs. This figure is half as much as was presented by the results of 2022. Yes, the statistics are really unpromising, but in any case, anyone who wants to know what types of taxes are, the forms and regime of taxation systems for individual entrepreneurs will encounter them.
However, it's not all bad. Over the past two years, about 35% of current businessmen have registered as individual entrepreneurs due to rising unemployment and related difficulties in finding employment. However, the main distinguishing feature of running a private business is a person’s special attitude towards his own business. It should be perceived not as a job, but as a calling. With this approach, the expanded activity can become a successful enterprise that brings its owner a stable income.
BASIC
What is this. The default basic system applies to all individual entrepreneurs unless you apply for a different regime.
What are the restrictions? None.
How much taxes does an individual entrepreneur pay in 2022? IP on OSNO pays three main taxes:
- Personal income tax - 13% or 15% on income exceeding 5 million rubles per year.
- VAT - from 0% to 20% depending on the type of business;
- property tax for individuals - up to 2%.
When to pay. Personal income tax is paid in advance for each quarter, no later than the 25th day of each month that follows this quarter. Only the last fourth payment can be deferred until July 15 of the following year.
VAT must be paid every month by the 25th, property tax - by March 1 of the following year.
What reporting. Typically, the document flow of individual entrepreneurs on the main system is carried out by an accountant, because this mode has the largest reporting. It is necessary to submit a tax return for personal income tax once a year - before April 30 of the following year, for VAT - once every three months, until the 25th day of the month following this quarter.
Suitable for: Individual entrepreneurs who cooperate with corporations use VAT deductions. For those with income of more than 200 million rubles per year or more than 130 employees. Also for businesses for which special regimes cannot be applied, for example, a notary.
How to switch to simplified tax system
In your personal account, select the “My taxation system” section, click “Submit an application” in the “Select another taxation system” column:
On the next page, select “Notice of transition to a simplified taxation system”:
On the next page, check your full name, tax identification number and enter your contact phone number.
You fill in the tax authority code - it appears automatically. If you want to check which tax office you are attached to, go to this page.
Next, choose which tax system you want to switch from:
If less than 30 days have passed since the date of registration, the start date for applying the simplified tax system will automatically appear:
Immediately choose the object of taxation: income or income minus expenses.
If you are switching from UTII, you need to fill in more fields with dates. If you just want to change the taxation system, then you can switch to the simplified tax system only from January 1 of the next year. If you refuse to operate under UTII, you can switch from the 1st day of the month when the imputed activity is terminated - in this case, the start date for applying the simplified tax system will automatically appear:
If you want to switch to the simplified tax system from other tax regimes, this can only be done from January 1 of the next year. You need to fill in the fields:
When everything is filled out, check the data. Only then sign and send the application to the tax office:
The tax office must make a decision within five working days.
The movement of the notification can be tracked using the link. If you have access to your personal account, you will be taken to the “Information about electronic document management with tax authorities” section. Here you can find out the status of the application and the tax decision. They will immediately inform you if you need to go to the tax office for the final document. The same section can be accessed from the main page of your personal account, called “My Mail”.
simplified tax system
What is this. Simplified system with a single tax. An individual entrepreneur can choose the object of taxation, that is, what he will pay tax on: his income or the difference between his income and expenses. If there is no income, no tax is paid.
What are the restrictions? Up to 200 million rubles of income per year, up to 130 employees.
How much taxes to pay. It depends on what the individual entrepreneur pays taxes on in 2022:
- STS “Income” - 6% if income is up to 150 million per year and there are less than 100 employees, 8% - if income is 150-200 million per year and there are 100-130 employees. You can deduct the amount of insurance premiums from the tax and thus reduce it.
- STS “Income minus expenses” - 15% of the difference between income and expenses, if income is up to 150 million per year and there are less than 100 employees, 20% - if income is 150-200 million per year and there are 100-130 employees.
For some types of business in the regions there are reduced rates, check this on the tax website.
When to pay. For each quarter, over the next 25 days. Here are the specific dates:
- until April 25,
- until July 25,
- until October 25,
- until April 30 of the following year.
What reporting. The tax return is submitted only once a year and is submitted by April 30 of the following year. You also need to regularly fill out the Income and Expense Book.
Suitable for: The simplified tax system “Income” mode is beneficial when the entrepreneur’s expenses are less than 70% of income. If expenses exceed 70% of income, the simplified tax system “Income minus expenses” is more profitable.
What types of taxation systems does an individual entrepreneur have, what is more profitable to use in work?
How much exactly the state has to pay when carrying out activities directly depends on the chosen payment scheme. To avoid paying more than you earn, you need to study your options in detail. Thus, when registering his own business, a private owner has the right to choose the most suitable one from the existing six.
BASIC
Represents the overall system framework. It is complex and has a fairly high tax burden. But at the same time, it gives you the opportunity not to limit yourself in choosing the directions of future business projects. Anyone can organize work in this mode. But you shouldn’t count on any concessions in the form of a reduced rate. When studying the specifics of taxation of individual entrepreneurs (IEs) and what system they use, you should know that this scheme does not imply reductions for certain categories.
The profit rate will be 13%, which corresponds to the amount of personal income tax on wages. Under other conditions, those who have registered will have to pay VAT, the calculation of which is very difficult. Since the rate varies depending on the type of product sold or services provided. The range is 0 to 20%.
simplified tax system
It is also simplified, which is most preferable for novice private businessmen. It operates in two modes: simplified tax system-income and simplified tax system-profit minus expenses. These provisions are fundamentally different from each other. So, in the first case, the tax paid will be equal to 6% of the total income. Not a bad scheme if your business expenses are relatively small. After all, according to the regime features, they are simply not taken into account. That is, no one will consider and calculate exactly how much is spent on business activities.
The second option will be optimal for those entrepreneurs who invest at least 65-70% of their income in their brainchild. Taxation is reduced due to the fact that the calculation is made at a rate of 5-15% on the amount obtained by subtracting the expenditure share from the profit.
Unified agricultural tax
Agricultural tax, which is a very profitable special regime. It is supposed to pay the state only 6% of the difference in income and expenses. However, only those private owners who are engaged in business in the field of agricultural production or the breeding of commercial fish species can work under it.
UTII
When studying the options for possible tax systems for individual entrepreneurs, you should note that this type is strikingly different from the others. Uniform implies the transfer of contributions to the state treasury not based on the actual amount of revenue, but in accordance with the tariff calculated by law.
Plus, the areas of registered business projects have their limitations. Working under this regime, it is impossible to organize your own production of a product, engage in trade or construction. This option is suitable only for those who plan to provide services to the public or register as a cargo carrier.
PSN
The patent system is the only one formed exclusively for private entrepreneurs. It is very similar to UTII due to the peculiarities of taxation, which imply the calculation of contributions not from real profits, but according to calculations of government agencies. The permitted types of activities largely overlap with imputation. However, in addition, private owners have the opportunity to open their own small production. For example, medical optics, business cards, carpet materials, agricultural implements, dairy, bread and sausage products, felted shoes, etc.
NAP
Professional income tax, which is currently valid only in 23 Russian regions. Businessmen-entrepreneurs who do not have employees, who are engaged in providing services to the public, performing work of certain categories and selling a product of their own production, have the right to work under this special regime.
All of the above schemes oblige private owners to comply with many difficult requirements. In this case, we are talking about a limited number of registered employees, a certain profit limit, and type of activity. Therefore, when deciding which regime and form of taxation is best to choose for an individual entrepreneur, when deciding on the type of tax that will be the most profitable, do not forget that it is very difficult to comply with the conditions. But this does not mean that you should abandon the idea of starting your own business. You just need to first think through and calculate everything in detail.
PSN
What is this. Replacement of tax with a patent for a certain type of activity. The entrepreneur buys it for a fixed period - up to one year. The law does not prohibit combining several patents or a patent with a simplified one.
What are the restrictions? Up to 60 million ₽ income for all patents, up to 15 employees, not for all types of activities. If there is no income yet, you will still have to pay the cost of the patent.
How much taxes to pay. The price is 6% of potential income, it depends on the type of business and location. For example, an annual patent for a programmer in Moscow will cost 300,000 rubles, and a translator in Saratov will cost 9,000 rubles. You can find the amount for your type of activity on the Federal Tax Service website.
You can subtract the amount of insurance premiums from the cost of the patent and thus reduce it.
When to pay. If you buy a patent for less than 6 months, then you must pay its cost before the end of the validity period. If the patent is from six months to a year, a third of the amount is paid within 90 days, the remaining two to three - until the end of the term.
What reporting. You only need to keep an Income Book; the tax office may request it at the end of the year.
Suitable for: For those who run a seasonal or temporary business, or if a patent is more profitable than other modes.
Unified agricultural tax
What is this. Special regime for agricultural producers, including fisheries and other organizations specified in the Tax Code.
What are the restrictions? An individual entrepreneur’s income from work in agriculture must be at least 70% of his total income. Up to 300 employees.
How much taxes to pay. 6% of income, but in some regions the rate is lower.
When to pay. Every six months, the first payment is made no later than July 25, the second payment is made by March 31 of the following year.
What reporting. Tax return - once a year, no later than March 31 of the following year.
Suitable for: Individual entrepreneurs who work in agriculture.
NAP
What is this. Special regime for self-employed citizens. That is, those who independently perform work, provide services or sell goods of their own production.
What are the restrictions? Income up to 2.4 million rubles per year; you cannot hire workers under employment contracts. Cannot be combined with other systems. Suitable for types of activities that allow you to switch to NPD - basically, these are services that an individual entrepreneur provides without the help of others.
How much taxes to pay. From income from individuals - 4%, from companies and individual entrepreneurs - 6%.
When to pay. Once a month, until the 25th of the next month. If there was no income, there is no need to transfer tax.
What reporting. There is no need to submit a tax return. Income must be indicated in the “My Tax” mobile application. It automatically calculates the tax due.
Suitable for: Those who independently provide services.
