Limits under the simplified tax system are restrictions, if violated, the preferential tax system cannot be applied. The main limits on the simplified system are related to the amount of income received, the cost of fixed assets and the number of employees.
The income limit changes especially often, so it is important for simplified tax payers to take into account the income limit set for 2022. In addition, it is worth checking whether you are aware of other conditions for using the simplified system.
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Basic limits on the simplified tax system
To pay tax at reduced rates using the simplified tax system, you must control all the limits listed below.
Please note that there are different restrictions for switching to a simplified regime and for the right to work on the simplified tax system. Let's look at each of them in more detail.
Limits on annual income under the simplified tax system
Article 346.13 of the Tax Code of the Russian Federation states that a taxpayer loses the right to the simplified tax system if, since the beginning of the year, his income has exceeded 200 million rubles. In addition, a deflator coefficient is applied to this amount, so the income limit will be higher.
Order of the Ministry of Economic Development of Russia dated October 28, 2021 N 654 establishes that the deflator coefficient for 2022 is equal to 1.096. This means that the income limit for the simplified system will be 219.2 million rubles.
But the amount of 200 million rubles, which is specified in Article 346.13 of the Tax Code of the Russian Federation, is the so-called increased limit. In addition, there is a usual income limit of 150 million rubles, it is given in Article 346.20 of the Tax Code of the Russian Federation. It also needs to be multiplied by a deflator coefficient, so for 2022 the usual limit is 164.4 million rubles.
Another limit for the simplified tax system was proposed by the Ministry of Finance in the “Basic provisions of tax policy for 2022.” We are talking about a long-awaited version of the simplification, which involves the abolition of declarations. If this regime is adopted in the proposed form, then the income of the simplifier should not exceed 60 million rubles per year.
Income limit for switching to simplified tax system
Most organizations and individual entrepreneurs switch to the simplified tax system immediately after registration, when they do not yet have any income.
But if an already operating company plans to switch to the simplified system, then you need to make sure that its income from January to September of the year of filing the application does not exceed the limit specified in paragraph 2 of Art. 346.12 Tax Code of the Russian Federation. It is 112.5 million rubles, and a deflator coefficient is also applied to this amount.
For a long time, the Ministry of Finance insisted that the coefficient established for the current year is used for calculations. However, in letter No. 03-11-06/2/95943 dated November 26, 2021, the department indicated that the transition year coefficient should be applied. Thus, the limit for the transition from January 1, 2022 was 112.5 million * 1.096, that is, 123.3 million rubles.
The income limit for switching to the simplified tax system does not apply to individual entrepreneurs. But the limits that allow the use of simplified taxation (that is, 200 million rubles and 150 million rubles per year, taking into account the deflator coefficient) apply not only to organizations, but also to individual entrepreneurs.
Limit on residual value of fixed assets
When switching to the simplified tax system, this limit is also set only for organizations. It is specified in paragraph 3 of Article 346.12 of the Tax Code of the Russian Federation and amounts to 150 million rubles. The deflator coefficient does not apply to it.
As for compliance with the OS limit for individual entrepreneurs already within the framework of work on the simplified tax system, a controversial situation has arisen. The fact is that paragraph 3 of Article 346.12 of the Tax Code of the Russian Federation clearly indicates that this limit applies only to organizations! Individual entrepreneurs are not mentioned in this norm.
However, the Ministry of Finance and the Federal Tax Service have repeatedly explained in their letters that not only organizations, but also individual entrepreneurs are required to comply with the limit on the residual value of fixed assets.
Here is what is said in one of the latest letters from the Ministry of Finance (dated 06/02/2021 No. 03-11-11/43679) on this issue: “A taxpayer, including an individual entrepreneur, who has a residual value of fixed assets determined in accordance with the legislation of the Russian Federation on accounting, in the reporting (tax) period exceeded 150 million rubles, loses the right to use the simplified taxation system from the beginning of the quarter in which such an excess was allowed.”
Moreover, this position of the department was also supported by the Supreme Court of the Russian Federation in a review of judicial practice dated July 4, 2018: “Individual entrepreneurs, along with organizations, lose the right to use a simplified taxation system if the maximum residual value of fixed assets is exceeded.”
Thus, although paragraph 3 of Article 346.12 of the Tax Code of the Russian Federation states that restrictions on the residual value of fixed assets apply to organizations, individual entrepreneurs in fact also have to comply with them.
Limit on number of employees
The maximum possible number of simplified employees did not change for many years and amounted to 100 people. From 2022, you can hire more workers, but not more than 130 people. It is this value that is decisive for the right to apply the simplified tax system (clause 4 of article 346.13 of the Tax Code of the Russian Federation).
If an individual entrepreneur combines the simplified and patent systems, then it is necessary to separately control how many workers are employed at the PSN; there should be no more than 15 people. At the same time, the limit of 130 people applies to the total number in the two regimes.
Results
When planning the transition to the simplified tax system, organizations must take into account the limit on the simplified tax system established in relation to income for 9 months of the year preceding the transition to this special regime. This limit of the simplified tax system for 2021 for an LLC is 123.3 million rubles.
Existing payers of the simplified tax system (both organizations and individual entrepreneurs) must control the maximum amount of annual revenue, exceeding which entails a ban on the use of this special regime. The income limit of the simplified tax system for 2022 is 200 million rubles.
Income for determining the limits of the simplified tax system for 2021-2022 is determined by the cash method.
Sources:
- Tax Code of the Russian Federation
- Federal Law of July 3, 2016 N 243-FZ “On amendments to parts one and two of the Tax Code of the Russian Federation in connection with the transfer to tax authorities of powers to administer insurance contributions for compulsory pension, social and medical insurance”
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What happens if the limits are exceeded?
The main advantage of the simplified taxation system is lower rates. So, the right to pay taxes at a minimum depends, first of all, on compliance with the limits.
Standard rates for the simplified tax system are:
- 6% on the “Revenue” object;
- 15% on the “Income minus expenses” object.
These rates apply only if the income received (revenue and certain non-operating income) does not exceed the usual limits on annual income and number of employees. Moreover, in the regions of the Russian Federation, rates can be even lower: up to 1% for the simplified tax system for Income and up to 5% for Income minus expenses.
If the income or number of employees is greater, but the limits for the application of the simplified tax system are observed, then the tax is paid at increased rates:
- 8% on the “Revenue” object;
- 20% on the “Income minus expenses” object.
For convenience, we will collect all the limits in a table.
Table: income limits for applying the simplified tax system in 2022
| Working conditions on the simplified tax system | Annual income | Number | OS cost |
| Standard and reduced regional rates | No more than 164.4 million rubles | No more than 100 people | No more than 150 million rubles |
| Increased rates | From 164.4 to 219.2 million rubles | From 101 to 130 people | No more than 150 million rubles |
| Loss of the right to the simplified tax system | Over 219.2 million rubles | Over 130 people | Over 150 million rubles |
Revenue cap for 2022
The limits that are set on revenue for companies using the simplified tax system are as follows. For companies switching to the simplified tax system, a revenue limit has been established, which should not exceed 112.5 million rubles. When comparing the restrictions on revenue during simplification in 2022 with previous years, we can conclude that the system is now more loyal, since the increase in the limit compared to previous periods has almost doubled.
If the established limit of the simplified tax system for revenue is exceeded, the company must switch from the beginning of the reporting year to the general tax system (general taxation system). In this case, a recalculation of taxes is carried out from which the simplified tax system is exempt, that is, income tax, property tax and VAT. To avoid this situation, all companies should draw up a financial plan where all possible situations will be predicted, as well as possible ways to solve them.
Additional conditions for applying the simplified tax system
In addition to the listed limits on income, the cost of fixed assets and the number of employees, there are other criteria for applying the simplified tax system in 2022, specified in Article 346.12 of the Tax Code of the Russian Federation.
It is also important to know about this, because violation of one of the conditions will lead to the loss of the right to simplified payment, even if the income or number of employees limit has not been exceeded.
Most prohibitions are related to activities. You cannot switch to and work on a simplified system in these areas of business:
- banks, pawnshops, professional securities market participants, microfinance organizations;
- non-state pension and investment funds;
- organization and conduct of gambling;
- extraction and sale of minerals, except for common ones;
- production of excisable goods, except for the production of wine and wine materials from its own raw materials.
- private employment agencies providing personnel (recruitment agencies that only select workers are not subject to the ban);
- notarial and legal activities.
In addition, the following are not entitled to work on a simplified organizational system:
- with a legal entity participant if its share exceeds 25% (with some exceptions);
- with branches (representative offices are allowed);
- being parties to production sharing agreements.
What to do after violating the limits on the simplified tax system
If the payer of the simplified tax system has exceeded the limits on income, residual value of fixed assets, number of employees, or violated other conditions for applying the simplified system, then he is obliged to report this.
To do this, submit an application to your Federal Tax Service Inspectorate in form No. 26.2-2 from the Federal Tax Service order dated November 2, 2012 N ММВ-7-3/ [email protected] Submission deadline - no later than 15 calendar days after the end of the quarter in which the conditions for applying the simplified tax regime were violated . And no later than the 25th day of the month of this quarter, you must submit the last declaration under the simplified tax system.
Moreover, the loss of the right to simplified taxation is determined from the beginning of the quarter when the violations were committed (clause 4 of Article 346.13 of the Tax Code of the Russian Federation). Accordingly, taxes will be calculated according to the rules of the general taxation system.
Maximum income under the simplified tax system in 2022
Organizations using the simplified tax system must organize revenue control to ensure that the amount of revenue corresponds to the limit value under the simplified tax system: 150 million in 2022.
Such control is easily implemented in the tax register “Book of Income and Expenses (KUDiR) under a simplified taxation system,” which is filled in with a cumulative total. To carry out control, KUDiR should be generated and archived in digital or paper form on a monthly basis.
At borderline profit levels, when the amount begins to approach the limit value for this tax regime, monitoring of the revenue indicator should be organized on a daily basis. This is due to the fact that the loss of the right to apply the simplification applies from the beginning of the quarter in which the indicator was exceeded. An organization that has lost the right to use the simplified tax system in the middle and at the end of the quarter is considered to be using the simplified tax system from the 1st day of the current quarter with all the ensuing consequences, including the preparation of primary documents. According to the law, invoices must be issued within 5 days from the date of shipment. This means that for the entire VAT tax period, which includes the loss of the right to the simplified tax system, it will not be possible to issue invoices. And the organization will have to pay VAT from its own funds.
The Resolution of the FAS of the Volga District dated May 30, 2007 No. A12-14123/06-C29 and the Supreme Arbitration Court of the Russian Federation dated August 6, 2007 No. 9478/07 contains an opinion and raises the question of the organization’s right to issue invoices for the entire period in which the accident occurred. loss of the right to simplification, but you will have to defend this position before the tax authorities yourself.
