Termination of activities as an individual entrepreneur. Sale of real estate

Reasons for refusing the simplified tax system

Why they refuse:

1. Termination of activities. In this case, the liquidation procedure is practically no different from the general system and includes the implementation of all the necessary stages, including the preparation of an interim liquidation balance sheet.
2. Transition to another tax regime. A change in the tax regime occurs on the basis of a voluntary decision of the taxpayer or due to forced circumstances.

Reasons for voluntary refusal:

• buyers (customers) who provide the largest turnover of the company are VAT payers. Cooperation with a simplified counterparty becomes unprofitable for them due to the impossibility of refunding tax amounts;
• next year it is planned to open branches or increase staff;
• Individual entrepreneurs switch to the regime for the self-employed (used in some regions of Russia).

Forced refusal occurs due to exceeding the maximum amount of revenue or other criteria, compliance with which is mandatory under the simplified tax system. In all cases, it is necessary to notify the tax authorities of the change in regime.

Initialization of the procedure for closing and liquidating an individual entrepreneur

This procedure begins with the collection of documents established by law, which must subsequently be provided to the tax authorities in order to deregister the businessman and cancel his individual entrepreneur status. For the Federal Tax Service you must have the following documents:

• application for termination of the activities of the individual entrepreneur;
• confirmation of payment of the state duty established by law.

Previously, this list was broader; a certificate from the Pension Fund, etc. was required. Now the procedure is simpler and the list is extremely shortened. Moreover, currently, notarization of the applicant’s signature on the form is not even required.

Application for termination of business activity

An individual entrepreneur ceases to operate from the moment he is deregistered as a taxpayer, for which a corresponding application must be submitted to the Federal Tax Service. As a rule, there are no problems filling out all the fields of the application for termination of business activity. The exception is cases when an individual entrepreneur, having the status of an individual entrepreneur, changed his last name and, accordingly, his passport, or changed his residential address. In this case, you must first make changes to the Unified State Register of Individual Entrepreneurs and only after that can you begin the procedure for liquidating your business.

In the event that nothing has changed at the time of closure of the individual entrepreneur, the individual entrepreneur filling out the paperwork to terminate the activity should clarify the address of the Federal Tax Service to which he will apply. According to the law, this is the Federal Tax Service where the individual entrepreneur was registered.

The application is drawn up in form P26001. This application can be submitted on paper. Today, its design in electronic form is also quite common. The application form is usually taken from any tax office or downloaded from the official website of the Federal Tax Service.

Payment of state duty for termination of business activity

Termination of business activity is subject to state duty. A blank receipt form to fill out is available at any tax office. If for some reason the visit to the Federal Tax Service is postponed, this form can be found on the Federal Tax Service website. Payment of state fees occurs at Sberbank branches. The state duty for this procedure in 2014, as in the previous one, is 160 rubles.

The cases will be officially terminated when the tax authorities make an appropriate entry in the state register. To do this, you must submit the above documents to the Federal Tax Service.

The registration authority, having received the necessary papers, on the sixth day issues the entrepreneur a document confirming the loss of his individual entrepreneur status - a registration sheet from the Unified State Register of Individual Entrepreneurs.

How to notify the tax office

In case of a voluntary transition, a notification to the tax service must be submitted no later than January 15 of the year in which the transition is planned. If you decide to change the regime later than this period, then the transition is possible only next year. The recommended form of notification is 26.2-3. Submission of a tax return payable in connection with the application of the simplified system and payment of the tax is carried out within the usual deadlines:

• for organizations - no later than March 31 of the year following the expired tax period;
• for individual entrepreneurs - no later than April 30 of the year following the expired tax period.

In case of termination of an activity in respect of which the simplification was applied, it is necessary to submit a notification within 15 working days after the relevant decision is made.

Grounds for termination of business activity

It is necessary to close your business correctly and competently, otherwise government agencies may have claims in the future. It is possible to carry out this matter either independently or by contacting a specialized company, where specialists will perform all the manipulations for a fee.

Termination of the affairs of an individual entrepreneur means the complete cancellation of the status of a business entity.

A businessman who initiates the termination of business activities must contact the registration authorities (territorial department of the tax service) with an application for state registration. registration of your decision.

Persons engaged in this activity and having the status of individual entrepreneurs have the right to stop it whenever they want. Russian legislation establishes the following grounds for terminating a business:

• a decision has been made to close the individual enterprise;
• death of a private entrepreneur;
• bankruptcy;
• compulsorily and only by decision of a judicial authority;
• by court verdict, when an individual entrepreneur is prohibited from doing business for a certain time.

The most common of these grounds is the decision to completely close an individual enterprise voluntarily.

Procedure for termination of activities

The procedure for terminating activities under the simplified tax system is divided into several stages:

1. Decision-making.
2. Submission of notification in the appropriate form. It must be completed manually or in a machine-readable manner. The document is provided in person, transmitted via telecommunications channels or sent by registered mail.
3. Filing reports and paying taxes.

Risks of refusing the simplified tax system

It is necessary to analyze current turnover, sources of replenishment of working capital and the reliability of counterparties. It is advisable to request the following documents from existing and potential buyers (customers):

• copies of tax returns and financial statements for the last reporting period;
• a certificate of the status of settlements with the budget;
• certificate of turnover on the current account.

In addition, it should be clarified whether the main suppliers are VAT payers. If you work with companies that use special regimes, VAT refunds are impossible, which means that the point of refusing simplification is lost.

In what cases is the notification not completed?

The notice is not filled out:

• upon liquidation;
• during the planned transition to OSNO or another special regime for those types of activities that are subject to a single tax under the simplified tax system;
• if the established criteria for simplification are exceeded (forced refusal).

Termination of business activity in the absence of funds

Quite often, businessmen are tormented by the question of how to close the activities of an individual entrepreneur in the absence of funds to pay off all debts. According to civil law, an individual entrepreneur who cannot pay his debts to all his creditors may well be declared bankrupt. For this there must be all grounds indicating its inconsistency:

• impossibility of making payments on monetary obligations;
• and (or) inability to pay mandatory payments.

An entrepreneur has the right to file an application if he feels threatened by his own bankruptcy. The fact that the person initiating the closure of his business does not have the ability to repay his debts in the current and future periods is an important condition when assessing the instability of the financial position of the enterprise.

To liquidate an individual entrepreneur who has debts and is unable to pay them, the legislation provides for two bankruptcy procedures

• settlement agreement;
• bankruptcy proceedings.

Closing a business through bankruptcy proceedings has the following consequences:

1. When a decision is made to declare an individual entrepreneur bankrupt, the USRIP record sheet along with existing licenses loses its validity;
2. An individual entrepreneur who is bankrupt does not have the right to re-register as an individual entrepreneur within a year.

At first glance, bankruptcy may seem like the best way out for a businessman with debts. However, you should not hope that the closure of an individual entrepreneur in this case will be painless. An individual entrepreneur, already being a simple individual, can lose all his property and be left with nothing.

PAYMENT OF THE ESTABLISHED STATE FEES FOR REGISTRATION OF TERMINATION OF INDEPENDENT INDEPENDENT ACTIVITIES.

To go through the procedure for state registration of termination of the activities of an individual as an individual entrepreneur, it is necessary to pay a state fee.

In accordance with subparagraph 7 of paragraph 1 of Article 333.33 of the Tax Code of the Russian Federation, the state fee for registering the termination of the activities of an individual entrepreneur is 20% of the established state fee for registration.

Accordingly, the size is 160 rubles .

We will tell you about the procedure for paying the duty in a special material.

However, it is worth noting that the fee can be paid either in cash or by bank transfer.

To pay in cash, you must first generate a receipt using the Federal Tax Service service, and you can also fill out a payment document form for payment through Sberbank.

[attachment=63: Form of payment document for payment of state duty for termination of the activities of an individual entrepreneur]

To minimize errors, we recommend paying using the service.

IMPORTANT: Please note that the general details will only be the budget classification code (BCC): 18210807010011000110 – when submitting documents directly to the registration authority; 18210807010018000110 – when submitting documents through Multifunctional centers for the provision of public services, where services related to the Federal Tax Service are provided.

All other details are entered taking into account the region in which registration was carried out.

Detailed information on the procedure for paying state fees is available in a special information material.

Final provisions for termination of business activities

When an individual entrepreneur ceases his activities, it is necessary to contact the bank and cancel the current account, of course, if the individual entrepreneur had one. The application for closure is written in any form. After receiving the application, the bank terminates the agreement.

If a businessman used a cash register in his work, then after the closure of the individual entrepreneur it must be deregistered.

To do this, you need to obtain an application for this operation from the tax authority at the place of registration. After this, a central service station engineer is called to generate a fiscal report, which must subsequently be submitted to the tax office.

Former individual entrepreneurs should know that after cessation of business activity, the TIN that was assigned to him remains.

Termination of the activities of an individual entrepreneur, carried out voluntarily, does not prohibit the re-opening of an individual entrepreneur immediately after its closure.

It should be remembered that the Federal Tax Service has the right to conduct tax audits of individuals who have already lost their individual entrepreneur status. Inspections are carried out for the entire period of activity, therefore it is recommended to store all documentation for at least three years after the closure of the enterprise.

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INTRODUCTION.

Sometimes situations arise when you have to make a decision to terminate your business activity.

Of course, this step is very unpleasant, but life presents its moments.

Then it is necessary to go through the procedure of registering the termination of the activities of an individual as an individual entrepreneur.

It is important to terminate your business activity wisely.

On the one hand, it looks quite simple, but even here there are some nuances, failure to comply with which will lead to the registration authority refusing to satisfy your desire to cease being a businessman.

APPLICATION TO THE TERRITORIAL BODY OF THE PFR FOR VERIFICATION OF ALL OBLIGATIONS WITH SUBSEQUENT DE-REGISTRATION.

From January 1, 2021, the legislation regarding the administration of contributions to the Pension Fund and other extra-budgetary funds has changed.

It is from this date that individual entrepreneurs do not apply to deregister with the Pension Fund. This procedure is carried out through the Federal Tax Service, but... If you, as an individual entrepreneur, acted as an Employer, then you need to contact the territorial department of the Pension Fund of the Russian Federation where you were registered to reconcile obligations, as well as provide all the necessary reports.

Individual entrepreneurs who decide to cease their activities, starting from January 1, 2017, who are Employers, submit to the Pension Fund: – information about insured persons (monthly) – SZV-M; – information about the insurance experience of the insured person.

All other procedures for deregistration are carried out by the Federal Tax Service, where information on accrued insurance premiums is sent.

REGISTRATION OF AN APPLICATION FOR REGISTRATION OF TERMINATION OF OPERATIONS AS AN IP (FORM P26001).

Application for registration of termination of activities of an individual as an individual entrepreneur is Appendix No. 15 to the Order of the Federal Tax Service of Russia dated January 25, 2012 N ММВ-7-6/ [email protected] as amended by the Federal Tax Service of Russia dated 05/25/2016 N ММВ-7- 14/ [email protected]

You can find out how to fill out this form correctly in a special article. Here I would like to note that there are several options for formatting this document:

IMPORTANT: Depending on the method you choose for submitting documents for registration of termination of the activities of an individual entrepreneur, the application form is signed in advance, and your signature is certified by a notary, or directly during the reception in the presence of a Federal Tax Service employee.

PREPARATION AND SUBMISSION OF ALL NECESSARY REPORTS FOR FUNDS.

This step, in theory, can be taken after receiving documents on the termination of the individual entrepreneur’s activities, however, many mistakenly believe that this action can be ignored.

It is for this reason that we decided in this material to indicate this step earlier than it logically follows.

No one is immune from the fact that some time after the closure of the individual entrepreneur you decide to register again, but the opening procedure in the future depends on how correctly you carry out the closure procedure.

At this step, you need to put together all the documentation in order to correctly prepare reports to the Pension Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund, the Social Insurance Fund (if you have employees, or if you have voluntary legal relations).

As a rule, in the absence of employees, these reports are more formal in nature, because in this case the most important circumstance is the payment of all current mandatory payments, fines and penalties, if any.

PLEASE ATTENTION: From January 1, 2021, due to changes in legislation regarding the administration of contributions to compulsory pension, medical, social insurance with the transfer of functions to the Federal Tax Service, for your convenience, but not necessarily, you will have to duplicate reports both to the Federal Tax Service and to Pension Fund and Social Insurance Fund.

Regarding reporting and its submission, we have prepared a convenient “cheat sheet” for you.

REPAYMENT OF ALL FINES, FEES AND OTHER NECESSARY PAYMENTS.

This step provides that an individual entrepreneur is obliged, on the date of filing documents on termination of activities, to pay fines, penalties, if any, for the entire period of his activities, as well as fees, taxes, taking into account the taxation system in force for the individual entrepreneur, as well as additional taxes in the event conducting certain types of economic activities.

The payment obligations of an individual entrepreneur consist of:

• existing taxes provided for by the chosen taxation system;
• fixed insurance contributions to funds for yourself, as an individual entrepreneur (these are the Pension Fund of the Russian Federation, FFOMS through the Pension Fund of the Russian Federation and the Social Insurance Fund in the case of current legal relations);

PLEASE NOTE: Since 01/01/2017, the administration of insurance contributions to the Pension Fund of Russia, the Federal Compulsory Medical Insurance Fund and the Social Insurance Fund, with the exception of contributions paid by individual entrepreneurs as an Employer in the event of industrial injuries and occupational diseases, has been administered by the Federal Tax Service. In this regard, all underpaid payments for 2021 and earlier years must be made using new budget classification codes to the details of the Federal Tax Service, in which you are registered for tax purposes as an individual entrepreneur.

• payment of taxes and other necessary payments to funds for hired workers (if the individual entrepreneur is the Employer);
• payment of additional taxes and fees in case of conducting certain types of activities.

Perhaps this is the most “painful” moment, the so-called “echo” of past entrepreneurial activity.

We tried to put together all the possible troubles and risks associated with fines and other payments.

To do this, you need to refer to the information material, from which you will learn a lot of interesting things.

DISMISSAL AND FULL PAYMENT WITH HIRE EMPLOYEES, IF ANY.

Perhaps this is one of the most difficult and responsible steps in closing an individual entrepreneur, provided that the individual entrepreneur had employees.

PLEASE NOTE: The individual entrepreneur – the Employer is subject to all rights and obligations established by the Labor Code of the Russian Federation regarding relationships with employees.

The general diagram for this step is as follows:

An individual entrepreneur or his representative provides employees with written notices of termination of the employment contract (dismissal) in connection with the termination of the activities of the individual entrepreneur (clause 1 of part one of Article 81 of the Labor Code of the Russian Federation, no less than two months before dismissal.

An individual entrepreneur is obliged to notify the Employment Service of a decision to terminate activities and possible termination of employment contracts no later than two weeks before the start of such activities. This obligation is enshrined in paragraph 2 of Article 25 of the Law of the Russian Federation “On Employment in the Russian Federation” (No. 1032-1 of April 19, 1991)

On the day of dismissal, the employee is paid: – current salary; – compensation for unused vacation (if any); – severance pay in the amount of average earnings. There are other options for interaction with the employee and additional compensation payments, which will be discussed in a special material.

The employee is given a work book, as well as all the necessary additional documents issued upon dismissal.

IMPORTANT TO REMEMBER: Severance pay in the amount of three times the average salary (for the regions of the Far North - six times) is exempt from the accrual of insurance contributions and personal income tax.

Detailed information on this step is presented in a special material.

DE-REGISTERING THE CASH MACHINE (IF ANY).

As a general rule, an individual entrepreneur has the right to carry out his activities without using a cash register. However, there are several cases that depend on the type of activity when it is necessary to use a cash register. Accordingly, upon termination of activity, cash register equipment is subject to deregistration with the tax authority.

PLEASE NOTE: An entry on the termination of an individual’s activities as an individual entrepreneur made by the registering tax authority does not imply automatic deregistration of the cash register machine. This entry will only serve as the basis for the deregistration procedure.