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 according to the simplified tax system
Organizations can register in any office, even a rented one.
Individual entrepreneur - only at the residential address indicated in the passport. You need to pay tax and submit a simplified declaration to the tax office, which belongs to the place of registration of the business. You can find the number, address and details of your Federal Tax Service through the tax service:
- Please indicate whether you are an individual entrepreneur or a legal entity.
- Click the “Address” line and in the window that opens, follow the prompts to fill in the registration address of your business.
- Click OK. You will see the four-digit code of your Federal Tax Service. It must be indicated in reports. The code usually matches the first four digits of the TIN of the organization or individual entrepreneur.
- Click Next. You will receive the address and payment details of the tax office.
If an individual entrepreneur moves to another region and registers there at a new place of residence, his Federal Tax Service will change. It is not necessary to inform the tax authorities about the change of address: they will find out on their own. Deregistration with the old Federal Tax Service and registration with the new one also takes place without the participation of the individual entrepreneur - he only receives two notifications about this.
In the new tax office, the individual entrepreneur will be listed from the date from which he was registered at a different address. The TIN does not change.
If an individual entrepreneur is registered in one region and operates in another, you must pay tax according to the simplified tax system and report at the place of registration. You will not have to register with the local Federal Tax Service.
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.
What taxes and insurance premiums must an individual entrepreneur pay for employees?
Here's what you need to know.
Personal income tax
Personal income tax is 13%. It is calculated on the employee’s income and deducted from the amount that he should receive.
For example, according to an employment contract, an employee’s salary is 30,000 rubles per month. Consequently, the employee will receive 30,000 - 13% = 26,100. And 3,900 rubles will go towards personal income tax.
It is worth considering that personal income tax is not charged on some payments of the Tax Code of the Russian Federation, Article 422 “Amounts not subject to insurance contributions.” We are talking primarily about compensation, financial assistance and preferential payments.
The tax is transferred on the payday or the next.
Insurance premiums
Contributions are also calculated on all employee income, but are no longer deducted from them. The employer must pay these amounts himself. They constitute the Tax Code of the Russian Federation, Article 425. Insurance premium rates:
- for compulsory pension insurance - 22%;
- for compulsory health insurance - 5.1% (1.8% for foreigners and stateless persons temporarily staying in the Russian Federation);
- for compulsory social insurance (in case of illness or in connection with maternity) - 2.9%;
- for insurance against industrial accidents and occupational diseases - 0.2–8.5% depending on Federal Law of December 22, 2005 N 179-FZ on the employee’s professional risk class.
As soon as the employee’s annual income reaches Decree of the Government of the Russian Federation of November 26, 2022 No. 1935 “On the maximum value of the base for calculating insurance contributions for compulsory social insurance in case of temporary disability and in connection with maternity and for compulsory pension insurance from January 1, 2022.” 1.465 million, only 10% of subsequent earnings need to be transferred to the Pension Fund. Contributions to the Social Insurance Fund are not made after reaching the level of 966 thousand. These indicators are introduced for 2021. They grow every year.
In addition, an individual entrepreneur can reduce contributions to compulsory social insurance by the amount of payments to the employee on sick leave and in connection with maternity. And for some categories of payers, the Tax Code of the Russian Federation, Article 427 “Reduced rates of insurance contributions” provides for reduced rates.
Insurance premiums must be transferred by the 15th day of the month following the one in which the employee received payments.
The transfer of contributions for employees must be reported quarterly to the Federal Tax Service. You have 30 days to do this after the end of the billing period.
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.
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.
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.
Tax regimes for individual entrepreneurs
In Russia, small businesses can choose which tax system to work on - general or special. Special tax regimes have another name - preferential. Tax rates here are lower than in the general system, in addition, it is possible to further reduce the calculated tax. Let's look at each preferential regime in more detail.
Free tax consultation
Simplified taxation system
Simplified is called the most popular special regime for individual entrepreneurs. Indeed, the simplified tax system allows you to engage in almost all types of business activities, if you comply with the limits on annual income and number of employees.
There are two objects of taxation on the simplified tax system - “Income” and “Income minus expenses”. Each of them has its own tax rate and tax calculation procedure.
Most individual entrepreneurs without employees choose the first option - simplified tax system Income. The advantages of this regime are not only the low tax rate (6% of income), but also the ability to reduce tax without restrictions by the amount of insurance premiums paid for oneself.
For example, in 2022, an entrepreneur transferred 43,500 rubles in insurance premiums for himself, and the calculated tax on an income of 500,000 rubles amounted to 30,000 rubles. In this case, the tax is completely reduced due to the contributions paid, so there is no need to transfer anything to the budget.
In another version of the simplified tax system, the tax rate is higher, but only the difference between income and expenses is taxed. In addition, in many regions the standard rate of 15% is reduced for some types of activities to 10% or even 5%.
True, keeping records on the simplified tax system Income minus expenses is more difficult than on the simplified tax system income. It is allowed to take into account only expenses from the list established by the Tax Code of the Russian Federation, and all expenses must be properly documented.
Prepare a simplified taxation system declaration online
Patent tax system
PSN can only be used by individual entrepreneurs. This mode differs significantly from the simplified tax system:
- It is not the real, but the potential income of an entrepreneur that is taxed;
- it is possible to obtain an individual entrepreneur patent only for certain types of activities;
- the patent is valid only in the territory of the municipality where it was issued.
From 2022 on PSN, the transferred insurance premiums may reduce the cost of the patent. But at the same time as this benefit, some regions have significantly increased the amount of income from which the cost of a patent is calculated. You can find out how much a patent will cost here.
Unified agricultural tax
The Unified Agricultural Tax is designed to support agricultural producers, fishing industries and those who provide them with certain services. Only certain entrepreneurs involved in agriculture and fishing have the right to work under this regime.
At its core, the Unified Agricultural Tax is similar to the simplified taxation system Income minus expenses, but the rate here is not 15%, but only 6%. However, agricultural tax payers must also pay VAT when selling their products. But if you have a small income, you can get an exemption from paying this tax.
Professional income tax
This is a new tax regime for individual entrepreneurs, which in 2022 will apply throughout the Russian Federation. An entrepreneur without employees whose annual income does not exceed 2.4 million rubles can become an NAP payer. In addition, there are the most stringent restrictions on types of activities. For example, you cannot engage in trading in the usual sense.
If an individual entrepreneur switches to paying tax on professional income, then he is not required to pay insurance premiums for himself. However, in this case, he will not be able to count on an insurance pension. The income of an NPA payer is taxed at different rates, depending on who pays for its services:
- 4% when receiving payment from individuals;
- 6% when receiving payment from organizations.
General taxation system
If the individual entrepreneur has not chosen any of the special regimes, then he will work on the general taxation system (OSNO). Here is the most complex accounting and high tax payments:
- Personal income tax at a rate of 13%;
- VAT at rates from 0% to 20%.
However, there are opportunities for tax optimization here too. Thus, you can be exempt from paying VAT if the entrepreneur’s income does not exceed 2 million rubles for three months. And part of the personal income tax paid can be returned if the individual entrepreneur purchased housing. An income tax refund is possible up to 260,000 rubles for expenses on an apartment and up to 360,000 rubles for mortgage interest.
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.
What to remember
- An entrepreneur pays taxes in accordance with his chosen taxation system.
- He is also obliged to pay insurance premiums for himself. An exception is if a person has suspended activities for a valid reason. The list of such reasons is defined in the law.
- If an individual entrepreneur has employees, he must pay personal income tax and insurance premiums for them.
- There are many details to consider when paying taxes and insurance premiums. Too much to act without studying the laws or the help of a knowledgeable person.
This article was published on October 21, 2022. In September 2021, we updated the text.
