Tax holidays for individual entrepreneurs in 2021: types of work activities

Currently, entrepreneurial activity is flourishing in Russia. Despite some difficulties that arise in the course of work, even the smallest entrepreneurs are in no hurry to close their business. The state is just as interested in keeping both large segments of entrepreneurship afloat and providing support to small businesses.

The taxation system of the Russian Federation does not stand still. Every year, depending on the economic situation in the country, the system undergoes changes and innovations.

Emergency benefits due to coronavirus

On May 11, 2021, the President outlined additional measures to help small businesses:

• completely write off taxes (except VAT) and insurance premiums for the 2nd quarter of small and medium-sized businesses, individual entrepreneurs and non-profit organizations that suffered from coronavirus
• provide special loans at 2% to support employment for companies in industries affected by coronavirus (calculated using the formula for 1 employee: 1 minimum wage per month). Moreover, if employment remains at 90%, then the entire amount of the loan and interest on it will be repaid by the state. If at the level of 80%, then the loan will be repaid in half.
• for the self-employed to return the income tax they paid in 2019,
• provide the self-employed with “tax capital” in the amount of 1 minimum wage

Earlier on March 25, 2021, Putin, in an urgent address to Russians due to the coronavirus situation, announced measures to support small and medium-sized businesses:

• introduce a deferment for all taxes, except VAT, for the next 6 months;
• reduce by 2 times from 30% to 15% the amount of insurance premiums for small and medium-sized businesses (if the salary is higher than the minimum wage);
• introduce a moratorium on filing bankruptcy applications by creditors for 6 months;
• increase unemployment benefits;
• announce a holiday on loans to small and medium-sized businesses whose income has fallen by 30%
• change the sick leave payment scheme - based on an amount of at least 1 minimum wage per month until the end of 2021.

In addition, due to the pandemic, additional restrictions are being introduced:

• Libraries and cultural centers will be temporarily closed.
• Cinemas, children's entertainment centers and playrooms will temporarily suspend their operations;
• Nightclubs and other entertainment venues will cease to operate;
• Smoking hookahs will be prohibited in restaurants, cafes and bars;
• Only shops, banks and consumer services located in the shopping center will be able to continue their work.

A number of these support measures will continue throughout 2021.

What benefits is an individual entrepreneur entitled to?

According to the Tax Code, benefits are provided for individual entrepreneurs at the initial stages of business formation who have chosen a simplified taxation option or a patent.
Important: an enterprise is new if the entrepreneur was not previously in this status, that is, if he was an individual entrepreneur, and then deregistered and registered again, then this is not considered a new formation.

The benefit is a low tax rate of 0%, which is introduced by local authorities. At the same time, they have the right to limit new entrepreneurs in their application, for example, by the number of employees or by the amount of income.

You will find out what changes have occurred in the taxation of individual entrepreneurs in this video:

https://www.youtube.com/watch?v=3X0Su89breE

Important: an entrepreneur has the right to use this relief if all criteria are met during 2 tax periods, usually they correspond to 2 calendar years.

If an entrepreneur violates one of the restrictions, then, starting from the year of violation, he must stop using the preferential rate and deduct a percentage of the tax in accordance with the requirements of the chosen system.

In addition to preferential taxation, individual entrepreneurs have the right to use:

• Discounts on housing and communal services;
• Subsidization;
• Subsidies and grants;
• Exemption from financial reporting.

Legislative framework and changes therein

The provision of benefits to entrepreneurs is ensured by the Tax Code of the Russian Federation, namely Art. 346.20 and 346.50.

Federal Law No. 477 of 2014 provides for a period of preferential taxation; it was this legislative act that introduced changes to the taxation of entrepreneurs, which provided them with the opportunity to receive tax holidays until 2021.

Thanks to such concessions, entrepreneurs can invest additional funds in business development.

According to changes in Tax legislation, a number of reforms are envisaged for this period, and concessions for small businesses are necessarily included in them.

Tax holidays: benefits for start-up entrepreneurs

The government has developed a law according to which all newly opened individual entrepreneurs can count on preferential taxation during the first two years of their activity.

Tax holidays are a period during which a new entrepreneur has the right not to pay taxes.

This law is popularly called tax holidays. However, there are nuances - in each region, the decision on tax holidays is made independently (through Resolutions of local authorities, regional Dumas and Governments of the constituent entities of the federation). If there are tax holidays in your region or territory, you can find out about this at the nearest branch of the tax inspectorate of the Federal Tax Service. Depending on the region, preferential income tax rates may vary.

General rules for tax holidays (applicable everywhere):

• Only individual entrepreneurs who use a simplified procedure or have purchased a patent are eligible;
• LLC, JSC CJSC and other legal entities are not entitled to tax holidays;
• Individual entrepreneurs using OSNO or UTII are also not subject to tax holidays;
• The validity period of tax holidays cannot be more than 2 years;
• There are types of activities to which tax holidays do not apply (depending on the region).

Also on topic:

• Minimum wage from January 1, 2021
• Apartment from the state free of charge for work

What activities are covered by tax holidays for individual entrepreneurs in 2018?

As mentioned above, tax holidays for individual entrepreneurs are not available to everyone. The main field of activity should be production, science or social work, while the Ministry of Finance of the Russian Federation does not specify OKVED codes. Each region approves its own list of activities, which allows businessmen to take advantage of a reduced tax rate. According to the Ministry of Finance, Moscow authorities have established 25 types of activities for individual entrepreneurs on the simplified tax system and another 17 types of activities for individual entrepreneurs on the PSN.

Examples of preferential activities for individual entrepreneurs on the simplified tax system

• production of food products and non-alcoholic drinks,
• processing and production of wood and cork products,
• production of plastic goods,
• tailoring and textiles,
• production of games and toys.

Examples of preferential activities for individual entrepreneurs on PSN

• sewing clothes and making shoes, as well as their repair,
• repair of furniture, electronics, household appliances, watches,
• conducting educational courses, sports activities, excursions,
• oral and written translation,
• engraving and laser work.

The listed activities are just an example. If you have any doubts about whether your business is included in the list, consult with a Federal Tax Service inspector. You can also talk to specialists - we will tell you about tax holidays for individual entrepreneurs in your field and offer inexpensive accounting services specifically for your case.

Tax benefits in 2021

For entrepreneurs in the Russian Federation, there are several types of taxation, from which he can choose the simplest one, with the minimum amount of taxes. The benefits of this or that type of taxation should be considered in relation to each individual type of activity and number of employees.

There are 5 preferential tax regimes for individual entrepreneurs:

1. Simplified taxation system or “simplified” (USN: Income). Under this type of preferential taxation, depending on the region, you will pay one general tax in the amount of 1% to 6% on all income. At the same time, there should not be more than 100 employees, and the turnover should not exceed 150 million rubles per year.
2. Simplified taxation system or “simplified” (STS: Income minus Expenses). A tax of 5 to 15%, depending on the region, is paid on the difference between income minus expenses. If expenses exceed income, then you only have to pay 1%. At the same time, there should not be more than 100 employees, and the turnover should not exceed 150 million rubles per year.
3. Patent taxation system or patent (PSN). You buy a patent for a year and work without paying any more taxes. At the same time, there should not be more than 15 employees, and the turnover should not exceed 60 million rubles per year.
4. Unified Agricultural Tax (USAT). Tax regime for farmers and agricultural producers.
5. You can also add a special tax regime for the self-employed here as a separate item. Because it can be used with restrictions.

Attention! From January 1, 2021, UTII will be cancelled.

Introduction of new laws into the taxation system from January 1, 2021

An individual entrepreneur (IP) is an individual who is given the right to conduct business activities in accordance with the Tax Code of the Russian Federation. Since an individual entrepreneur is not a legal entity, its taxation system is generally simpler than that of LLCs and JSCs. As a taxation system, as a rule, individual entrepreneurs choose the simplified taxation system (Simplified Taxation System).

Despite this, there is still one significant drawback in the system for those individuals who opened an individual entrepreneur at the end of the year, namely, registered with the Unified State Register of Individual Entrepreneurs in December. Before January 1, 2018 , the following rule followed: if an individual entrepreneur registers himself in December, then next year it will be necessary to submit reports for several weeks of December last year, in which the individual entrepreneur was opened - this is very inconvenient. Many “newly-minted” entrepreneurs who opened an individual entrepreneur in the last days of December do not even realize that they will need to submit a declaration with activity reports these few days before the new year.

On March 30, 2021, bill No. 1030837-6 “On amendments to Article 55 of Part I of the Tax Code of the Russian Federation” . This bill described the proposed changes in the procedure for determining the first tax period for individual entrepreneurs.

In simple words, those individuals who opened an individual entrepreneur in December will have to submit reports for the first time for the period from the moment of registration until the end of next year. From January 1, 2018, the first tax period for individual entrepreneurs registered from December 1 to December 31, 2021 will be identical to the period of legal entities.

Another change in the legislation of the Russian Federation was bill No. 186057-7 , which amended Article 7 of the Federal Law “On the use of cash register equipment when making cash payments and (or) payments using payment cards . The law was signed by V.V. Putin on November 27, 2021 and came into force at the end of last year. The changes will affect individual entrepreneurs on UTII and PSN.

On July 29, 2021, Federal Law No. 214 “On conducting an experiment on the development of resort infrastructure in the Republic of Crimea, Altai Territory, Krasnodar Territory and Stavropol Territory” . The resort fee, or additional tax on tourists, will begin on May 1, 2021, and the experiment is planned to extend until December 31, 2022. The document explains the purpose of introducing this experimental tax, namely, the preservation, restoration and development of resorts, as well as the creation of favorable conditions for the sustainable development of the tourism sector.

Subsidies for start-up entrepreneurs in 2021

In order to start a business, you usually need to make an initial investment - have start-up capital, working capital, assets. If there is none of this, how can a small entrepreneur start his own business? To achieve this, there are government measures to support small businesses. They vary depending on the region.

The most common measures of state support for entrepreneurs:

• Free subsidies for development up to 1 million rubles (through the Employment Center or the small business development department in the local administration);
• Relief on payment of state duty when registering an individual entrepreneur or LLC for disabled people or large families;
• Preferential loan rates, for example for farmers;
• Subsidies from the Employment Service for registering an LLC or individual entrepreneur;
• Free assistance in designing exhibitions, expositions, advertising;
• Compensation for employee training;
• Preferential rental of offices in business incubators.

Benefits for small businesses in government procurement

In times of crisis, when the state takes on the lion's share of expenses in the economy, access to government procurement is for some entrepreneurs the basis of their survival. However, due to their scale, individual entrepreneurs can rarely compete with large corporations in tenders. Therefore, special conditions for participation in government procurement have been created for such companies and individual entrepreneurs.

Benefits for small businesses in government procurement:

• the amount of the application security cannot be higher than 2% of the contract volume (while for other participants the security payment is not less than 5%);
• the grace period for payment for goods or work by the government customer cannot be more than 15 days (while for other participants this period is at least 30 days);
• for a government customer with revenue of more than 2 billion rubles, it is mandatory to purchase at least 18% of goods and services from individual entrepreneurs and small businesses;
• benefit for small businesses in government procurement - government customers are required to make at least 15% of the total annual volume of purchases from this category.

Under such fairly comfortable conditions, the purchase of school equipment, office equipment for the administration, repair work in the buildings of government organizations and other government contracts lead to the fact that individual entrepreneurs are involved in the movement of capital and make a profit on preferential terms.

Subsidy for starting a business for the unemployed

Among the above methods of state support for individual entrepreneurs, it is worth highlighting separately the subsidy for starting a business, which any unemployed person can receive if they decide to create an individual entrepreneur.

This subsidy is paid by the Employment Center, so to receive it you must first register as unemployed and register.

After this, you must notify your supervisor that you want to apply for a subsidy and they will tell you in detail what is required for this.

First of all, you need a clear business plan, where you describe in detail all stages of your business from opening to profit. Besides you, other unemployed people may also participate in the competition, so you need to try to ensure that you are chosen and that the money goes to you and not your neighbor.

What can you spend a subsidy from the Employment Center on:

• Payment of state duty;
• Purchase of raw materials;
• Payment for notary services;
• Repair of retail or office premises;
• Purchase of equipment, machines, materials;
• Payment for legal and consulting services.

The estimated subsidy amount in 2021 is 300 thousand rubles, but in some regions this figure may differ. In a number of regions, Employment Centers provide a subsidy of 60,000 rubles.

Benefits for paying insurance premiums

As you know, when calculating the salary of an employee in Russia, by law, his employer is obliged to pay payments to funds for the employee, which amount to 30% of the salary:

• Pension Fund – 22%;
• Social Insurance Fund – 2.9%;
• Compulsory medical insurance – 5.1%.

If the entrepreneur meets a number of criteria:

1. Organization or individual entrepreneur in simplified terms, according to the types of activities specified in Article 427 of the Tax Code of the Russian Federation;
2. IP on the PSN Patent System;
3. Non-profit or charitable organization on the simplified tax system,

then he has the right to apply preferential rates of insurance premiums for employees and can pay only 20% of the salary:

• Pension Fund – 20%;
• FSS – 0%;
• Compulsory medical insurance – 0%.

If the entrepreneur belongs to one of these types of business:

1. An organization or individual entrepreneur that has entered into an agreement with a special economic zone for technological innovation or tourism and recreational activities;
2. A business company or a simplified partnership that introduces patents, inventions, designs, the rights to which belong to the state;

then he has the right to apply preferential rates of insurance premiums for employees and can pay only 21% of the salary:

• Pension Fund – 13%;
• Social Insurance Fund – 2.9%;
• Compulsory medical insurance – 5.1%.

If an entrepreneur is an accredited IT businessman, then he has the right to apply preferential rates of insurance premiums for employees and can pay only 14% of the salary:

• Pension Fund – 8%;
• Social Insurance Fund – 2%;
• Compulsory medical insurance – 4%.

If an entrepreneur is a participant in the Skolkovo project, then he has the right to apply preferential rates of insurance premiums for employees and can pay only 14% of the salary:

• Pension Fund – 14%;
• FSS – 0%;
• Compulsory medical insurance – 0%.

Other tax benefits for individual entrepreneurs

As such, there is no list of categories of individual entrepreneurs claiming tax benefits, just as there is no clear listing of benefits and privileges that can be used by individual entrepreneurs to ease the tax burden. If by benefits we mean any opportunity to somehow reduce tax costs, there are several more options that will help individual entrepreneurs save on fees to the budget and optimize expenses.

Preferential tax systems for individual entrepreneurs

An individual entrepreneur, directly when submitting an application for registration or later, has the right to choose one of several tax systems:

• general (OSN) taxation system;
• simplified taxation system (USN);
• patent (PSN) taxation system;
• unified tax on imputed income (UTII);
• single agricultural tax (UST).

A detailed comparison of all tax regimes with the general regime can be easily found on the Federal Tax Service website. It will help a new entrepreneur choose the appropriate taxation procedure.

Video: how to choose a tax system for individual entrepreneurs

The use of the simplified tax system, PSN, UTII or Unified Agricultural Tax gives the taxpayer freedom from the need to pay some taxes that are mandatory when working under the OSN:

• Personal income tax on income from the activities of individual entrepreneurs;
• tax on the property of an individual used by an entrepreneur for work;
• VAT (except for payment of VAT when importing goods through customs from other countries, as well as when working under simple partnership agreements or trust management of property).

Simplified taxation system

The simplified taxation system is aimed primarily at helping micro, small, and medium-sized businesses and allows you to choose the taxable object that is most suitable for a particular business unit.

Table: objects of taxation according to the simplified tax system

The simplified tax system presupposes simple accounting and a minimum tax rate. Moreover, when choosing a simplified tax system with the object “income”, it is possible to reduce the tax paid by partially or completely subtracting from it the amount of payments paid to insurance funds, which individual entrepreneurs without employees pay for themselves, and individual entrepreneurs with hired employees pay for their staff . This opportunity is guaranteed by Article 346.21 of the Tax Code of the Russian Federation:

Taxpayers who have chosen income as an object of taxation reduce the amount of tax (advance tax payments) calculated for the tax (reporting) period by the amount of insurance contributions for compulsory pension insurance, compulsory social insurance in case of temporary disability and in connection with maternity, compulsory medical insurance, compulsory social insurance against industrial accidents and occupational diseases paid (within the calculated amounts) in a given tax (reporting) period.

Article 346.21 of the Tax Code of the Russian Federation

The same article reports that in 2021, individual entrepreneurs operating without hiring staff can reduce their tax payment by the full amount of contributions paid to the funds, and individual entrepreneurs employing hired workers can reduce their tax by no more than 50 %. At the same time, it is allowed to take into account payments not only for oneself, but also for employees. Article 427 of the Tax Code of the Russian Federation provides a list of OKVED codes, the work of individual entrepreneurs under which allows making contributions to funds at lower rates. So, in general, insurance premiums amount to about 30% of wages and other payments. This figure works out like this:

• 22% - for pensions;
• 5.1% - for medical support;
• 2.9% - for social security.

The preferential tariff allows you to reduce pension payments by up to 20%. These types of activities include, for example, various types of production, educational and research projects, sports activities and other areas.

By choosing the simplified tax system according to the “income minus expenses” scheme, the individual entrepreneur is allowed to take into account payments made to insurance funds in his expenses, but does not have the right to reduce the tax payments themselves.

An individual entrepreneur using the simplified tax system with the “income minus expenses” scheme also has options to reduce payments to the tax office. The reduced tax rate under the simplified tax system applies to various areas of work of individual entrepreneurs with specific OKVED, in different regions of Russia these types of activities may differ. For example, on the territory of Moscow there is a regional law of Moscow dated October 7, 2009 No. 41 regulating the work of individual entrepreneurs, and the tax on individual entrepreneurs is levied at a rate of 10%, and the preferential activities include the following:

• production related to the processing of something;
• management of the operation of residential and (or) non-residential assets;
• research work;
• social services;
• sports activities;
• plant breeding (and related services);
• animal breeding and related services (except veterinary medicine).

For individual entrepreneurs registered in St. Petersburg, an excellent rule applies. According to the Law of St. Petersburg dated May 5, 2009 No. 185–36, a tax rate of 7% is allowed to be used by all individual entrepreneurs working on the simplified tax system with the object “income reduced by the amount of expenses.” In this situation, there is no talk of any selected areas eligible for benefits.

Due to the peculiarities of legislation in each individual subject, the rate of 6% under the simplified tax system can be reduced even to 1%. A complete list of Russian regions that have adopted laws reducing the tax rate under the simplified tax system is available for download on the website of the Ministry of Finance.

Video: simplified taxation system 6 and 15%

PSN, UTII, Unified Agricultural Tax

The patent taxation system in Russia today is allowed for use only for individual entrepreneurs. A detailed list of types of activities of individual entrepreneurs who can work on the PSN is quite large and, together with other essential information, is provided on the website of the tax inspectorate. In this list it is easy to find services for training, providing nursing care, making shoes and clothing, furniture repair, repair and maintenance of household appliances, and so on.

We suggest downloading a detailed classifier of types of business activities that allow the use of PSN at the link. The PSN tax rate will be 6%.

Video: patent taxation system for individual entrepreneurs

The single tax on imputed income is also applicable only to specific areas of activity (see paragraph 2 of Article 346.26 of the Tax Code of the Russian Federation). These include, for example, the following segments:

• retail;
• catering;
• veterinary services;
• auto repair and maintenance services for automobiles and motorcycles;
• advertising distribution;
• leasing of retail spaces and plots of land;
• hotel organization services;
• services for automobile transportation of passengers;
• cargo transportation by road;
• parking services and others.

When calculating UTII, the amount of imputed income for each of the named types of activities is taken into account, but not the actual income of the business unit. The amount of imputed income is fixed in the Tax Code. The UTII tax rate is 15%. Tax payments, as in the case of taxpayers of the simplified tax system, can be made less by the amount of contributions paid to insurance funds.

Private entrepreneurs working with hired workers have the opportunity to reduce payments to the tax office by an amount not exceeding 50% of contributions for their employees. Individual entrepreneurs without employees can reduce the tax paid by the full amount of insurance premiums paid for themselves. Detailed information about the conditions for using UTII can be easily found on the website of the Russian Tax Service. Regional legislation may reduce the UTII tax rate from 15 to 7.5%. The exact working conditions must be clarified separately for each subject of the Russian Federation.

Video: features of using UTII

The Unified Agricultural Tax regime was introduced exclusively for individual entrepreneurs engaged in the production of agricultural products. The object of taxation in this system is income reduced by the amount of expenses, and the tax rate is 6%. According to paragraph 5 of Article 346.6 of the Tax Code of the Russian Federation, it is possible to reduce the tax base by the amount of losses received in previous years. Detailed information about the conditions for applying this regime is available on the Federal Tax Service website.

When opening an individual entrepreneur, you should pay close attention to the choice of tax regime. Correctly resolving the issue will help you save significantly on mandatory payments and avoid problems with regulatory services and authorities.

Video: Unified Agricultural Tax - Unified Agricultural Tax

Moratorium on inspections of small businesses and individual entrepreneurs

The moratorium on inspections, popularly known as “supervisory holidays,” was adopted several years ago in order to ease the administrative burden on small businesses.

A moratorium on inspections of individual entrepreneurs is a ban on government agencies to conduct inspections of small businesses.

In 2021, the ban on scheduled tax audits continues to be in force for a period of 3 years, although the Government plans to extend it for another 6 years.

However, the moratorium does not apply to all types of inspections - the following can be carried out:

• scheduled tax audits;
• unscheduled non-tax audits.

Also according to Art. 26.1 of the Federal Law of December 26, 2008 No. 294-FZ, individual entrepreneurs and companies from:

• electric power industry,
• social sphere,
• healthcare,
• heat supply,
• education.

Who may not use cash registers (CCT)

Another benefit (due to the high cost of equipment and maintenance) is the exemption from the use of cash registers.

Who may not use cash registers and cash registers in 2021:

• Individual entrepreneurs who have payment systems or issue loans according to Law No. 54-FZ are exempt from using cash register equipment in ATMs and other devices intended for carrying out operations for transmitting orders for money transfers using electronic means of payment;
• Individual entrepreneurs and organizations providing services to the public before July 1, 2018 may not have used cash registers; after that, benefits remained for some types of activities and in some regions - you need to check with your tax office;
• Religious organizations;
• Individual entrepreneurs and organizations with a patent or imputation may not have used cash register until July 1, 2021, after which benefits remained for some types of activities and in some regions - you need to check with your tax office;
• Individual entrepreneurs and organizations that are located in hard-to-reach and remote places, as well as those who are engaged in certain types of activities, for example, trading in kiosks, shoe repair, splitting firewood, and others, until July 1, 2021, could not use KKM, after that There are still benefits for some types of activities and in some regions - you need to check with your tax office;
• Rural pharmacies.

Also, for all these categories, from July 1, 2021, Law No. 54-FZ introduced the obligation to use online cash registers. But for a number of preferential categories of entrepreneurs, there remains an exemption from the cash limit and a simplified procedure for conducting cash transactions.

Amount of taxes for individual entrepreneurs on the simplified tax system

The simplified tax system is a regime where an individual entrepreneur can keep his records as simply as possible, receive a low tax rate, and also reduce the tax amount due to insurance contributions. When choosing a simplified system, an entrepreneur can adhere to two options:

1. Income at a rate of 6%.
2. Income reduced by expenses at a rate of 15%.

To carry out reporting under this scheme, the profit from the enterprise should not exceed 150,000,000 rubles. This indicator is fixed until 2021 (see The main thing about income tax: calculation, rate, payment terms, preparation of the declaration).

Features of taxation of individual entrepreneurs with employees

If there is at least one employee subordinate to the entrepreneur, then all information about payments and salaries will need to be sent to the Federal Tax Service. You will also need to provide reports 2-NDFL and 6-NDFL.

Single tax on imputed income for individual entrepreneurs

The imputed income tax is a voluntary tax adopted in 2013. The government proposed limiting UTII until January 1, 2021, but this period was extended to 2021. From July 1 of this year, all individual entrepreneurs are required to purchase an online cash register for use. The requirements also apply to businessmen with a patent.

Benefits for disabled entrepreneurs

Basically, even if an entrepreneur has a disability group, this does not exempt him from paying social contributions and tax payments to the budget. However, there are several special benefits provided specifically for disabled entrepreneurs.

Benefits for entrepreneurs with disabilities of group II:

• monthly discount of 500 rubles on income tax;
• tax exemption for monthly income below 100 thousand rubles;
• exemption from property tax;
• transport tax benefit;
• can use public transport for free.

Benefits for disabled entrepreneurs of group III:

• Monthly discount of 500 rubles on payment of personal income tax (personal income tax)
• Tax exemption for monthly income below 100 thousand rubles
• They do not pay transport tax;
• Free travel on public transport.

There are also useful articles for disabled people:

• pension for disabled people of groups 2 and 3
• benefits for disabled people of group 2
• dating for disabled people

The meaning of benefits and their receipt

Representatives of small businesses who have chosen the following systems are eligible for preferential taxation:

• simplified tax system for individual entrepreneurs;
• Patent system for entrepreneurs.

It is necessary to bring small businesses out of the shadows, which many citizens operate illegally because they consider the applicable taxation in the country unaffordable.

Basic taxation systems.

The state, offering tax breaks, seeks to ensure:

• The legality of carrying out activities by persons who do not have employees, so that they can subsequently receive a pension;
• New workplaces;
• Reduce social tension;
• Increase the well-being and financial stability of citizens;
• Promote the development of new technologies and activities.

However, the preferential system may not be available to every entrepreneur.

To obtain it, you must comply with the basic requirements of the law:

• No complaints from the consumer;
• Initial registration as an individual entrepreneur. Here you will learn how to register an individual entrepreneur as an employer;
• Registration took place within the last 2 years;
• Registration took place after the entry into force of the regional legislative act;
• The chosen type of activity should be science, social projects, production;
• The main income up to 70% must be obtained from this activity;
• This bill must be valid in the region, that is, local authorities have the right not to use it.

In addition, local authorities may introduce their own restrictions:

• Limitations on the number of employees;
• Maximum profit for the year;
• There may be restrictions on types of activities, this applies to certain OKVED codes.

The following persons will also be able to apply tax holidays:

• Victims of natural and man-made disasters;
• They are at risk of insolvency or bankruptcy;
• The business is carried out seasonally.

When and how to use holidays

In order to properly fulfill his duties and confirm his right to preferential holidays, an entrepreneur must do the following.

Keep a book of income and expenses on the simplified tax system, promptly displaying in it all the necessary information on business transactions. In addition, the owner of the enterprise is obliged to enter information from the primary documentation into the KUDiR of the private enterprise.

The rules and procedure for maintaining a book of income and expenses are discussed in detail in this article.

In addition, it is advisable to apply preferential taxation from the beginning of the calendar year in order to effectively apply it within the allotted 2 years.

Important: he must declare the use of a preferential rate of 0% within a month from the date of registration and registration.

When using the convenient option with a patent and applying a grace period, it is better not to use its short-term option when the patent is valid for less than a year.

Types of tax benefits.

In this case, to use the preferential rate you need:

• Register as an individual entrepreneur;
• Purchase a patent;
• 10 days before the end of the document’s validity period, submit an application to the tax office for preferential taxation.

Important: remember that only representatives of small businesses registered as individual entrepreneurs can take advantage of this opportunity.

Cash register benefits

The use of cash registers is now mandatory even in those areas and in those tax regimes that were previously exempt from this obligation and had the right to issue a sales receipt.

However, now, starting from 2021, the online cash register must be used by entrepreneurs on UTII and patent regime in the field of retail trade and the provision of catering services. Entrepreneurs who do not have staff in the same field on imputation and patent may not use a cash register until July 2021.

Important: for this category of businessmen, subsidies are provided as a tax deduction in the amount of 18,000 rubles for the purchase of equipment.

Grants and subsidies

Small businesses do not always justify investments, and even tax breaks do not change the situation, since there are not enough own funds for full development.

In this case, the state provides the opportunity:

• Receiving subsidies when opening an enterprise;
• Partial repayment of costs for loans and leases;
• Reimbursement of expenses for participation in exhibitions, competitions, fairs;
• Payment for employee training;
• Providing equipment for technopolises, centers, parks.

Important: subsidizing for a start-up individual entrepreneur is quite significant assistance, since it is irrevocable.

How to get

But to get it you need:

• Carry out the type of activity provided for by regional laws;
• Pass a competition during which it will be proven that the project can bring profit;
• Invest in this project at least 50% of your own funds according to the business project;
• Apply subsidies only within the framework of the project, otherwise they will require a refund.

In the process of receiving a subsidy, it is necessary to take into account that its size is set individually by each region.

Benefits in the process of opening an individual entrepreneur

To receive tax benefits when opening an enterprise you must:

• Comply with all legal requirements;
• Use the required tax regime;
• Declare the application of tax benefits in a timely manner.

Preferential taxation on property of individual entrepreneurs

Benefits for paying property tax are provided for entrepreneurs who, as individuals, fall under the category of persons exempt from their payments, these are:

• Disabled people of groups 1 and 2;
• Participants of the Second World War, military personnel with over 20 years of experience and their relatives, Afghans;
• Pensioners;
• Owners of outbuildings on summer cottages;
• Those officially engaged in creativity and art;
• Victims of radioactive exposure.

Benefits when paying insurance premiums and obtaining a patent

Only to obtain a patent must the norm established by law be observed:

• Regarding the number of employees;
• Maximum revenue for all types of activities.

After purchasing a patent, you must comply with all the conditions for the preferential treatment and only at the end of its application, 10 days before the end, write an application for the benefit.

Reduced rates on insurance premiums can be applied if the revenue threshold is not exceeded; in 2021, its threshold is 79 million rubles for preferential types of activities.

As well as IT organizations that own hired crews of ships in Russia.

The right to perpetually purchase the leased property

At the beginning of 2021, the Government began to develop a bill according to which small businesses should be given the right to indefinitely buy out leased property.

This is very useful, since a number of entrepreneurs rent retail or office space from the state. Dependence on changes in rental rates makes doing business very risky, and the state decided to grant such a benefit as granting a pre-emptive right to the perpetual purchase of this premises by an entrepreneur, provided that he actually conducts his business in this premises.

If previously it was possible to buy out only real estate in which the business was operating before July 1, 2015, now this restriction has been lifted.

Fixed taxes for individual entrepreneurs

Each individual entrepreneur must pay a fixed tax, popularly called “self-tax.” Even if there was no profit from the enterprise, the amount should still go to the state account. The amount of payments is calculated annually. The tax regime does not matter.

A certain amount is paid from the date of organization until the closure of the individual business, if this happens. If pensioners are engaged in entrepreneurial activity, then they must also fully pay all the necessary contributions, even despite their specific income. This is a protective measure to ensure that close relatives or friends are not covered by the name of the pensioner.

Insurance contributions for compulsory pension and health insurance

Insurance premiums are paid until December 31 of each year. This means that the amount can be transferred whenever it is convenient, but without exceeding the maximum allowable date.

Previously, official insurance premiums directly depended on the minimum wage. But in 2021, the government reviewed law number 274631-7, where they decided to abolish this dependence.

If an individual entrepreneur receives less than 300,000 rubles, then he is required to pay 5,840 rubles for health insurance. If your income exceeds 300,000 rubles, the amount remains unchanged.

Fines for late payment of insurance contributions to the Pension Fund

An amount of 26,545 rubles is accrued for pension insurance if the income is less than 300,000 rubles. If income exceeds this amount, then you must pay 26,545 rubles and 1% of income.

Exceptions to payment of fixed benefits

A businessman can be exempt from contributions in the following situations:

1. Takes care of a small child (up to 1.5 years old).
2. The individual entrepreneur was drafted into the army for military service.
3. If the spouses of the individual entrepreneur live outside of Russia. But this situation only applies if these people are sent to another state to represent their country or serve in consular posts.
4. In the case of caring for a disabled person of group 1, a young disabled person or a person who is over 80 years old.
5. If the individual entrepreneur is a lawyer, but has ceased his activities at the official level.

To receive official tax benefits for entrepreneurs in 2018, you need to document all of the above facts.

Deferment of tax payment

Small businesses that find themselves in a difficult situation will be given a deferment of sales tax. This decision was made as part of the program for preparing assistance to small businesses.

This benefit implies full or partial exemption from taxes, or an installment plan for payment of tax payments.

Tax deferment or exemption for individual entrepreneurs applies when:

• The business was in a pre-bankruptcy state;
• The entrepreneur's property has suffered significant damage due to a man-made disaster, fire or other natural disaster;
• The business is seasonal (for example, farmers).

In all these cases, the state and the tax service meet the businessman and are obliged to provide him with either a complete exemption from excessive taxes, or a temporary deferment of taxes without applying fines to him. On the part of the entrepreneur, all that remains is the obligation to document what happened to him.

Installment payment of taxes for individual entrepreneurs

In addition to choosing the right tax regime, businessmen can take advantage of other forms of support from the state in order to optimize their payments and minimize problems of interaction with regulatory authorities. Individual entrepreneurs have grounds to apply for an installment plan for payment of payments and contributions due to an unfavorable financial condition that arises in one of the following cases:

• the property of the individual entrepreneur was damaged by force majeure factors, for example, flood, fire, man-made disaster, and so on;
• the individual entrepreneur faces the danger of bankruptcy or partial insolvency;
• The individual entrepreneur does not have enough funds to make a one-time payment in full;
• Individual entrepreneurs are required to pay taxes related to import/export procedures across the borders of the Customs Union;
• Individual entrepreneur works seasonally;
• The individual entrepreneur did not receive funds from the budget in a timely manner (subsidies or payment for services from the customer under government contracts).

To receive benefits justified by these factors, you must provide evidence of what happened to the Federal Tax Service. Installment payment can be given for a period of no more than one year. To receive it, you must provide the necessary documents to the regional branch of the Federal Tax Service:

• an application requesting payment in installments;
• certificates from banks reflecting the movements of the individual entrepreneur’s finances over the last 6 months and the status of the individual entrepreneur’s accounts;
• list of debtors and copies of contracts under which obligations were violated;
• the individual entrepreneur’s obligation on the planned settlement with the Federal Tax Service and an approximate debt payment schedule.

To the application and the certificates listed above, it is necessary to add a conclusion about what damage the individual entrepreneur caused due to circumstances of an insurmountable nature, as well as reports on the assessment of the losses caused. In the event of a shortfall in budget funds, it is necessary to provide confirmation from the manager of budget funds with information about the status of settlements between the individual entrepreneur and the state organization.

Detailed information about the conditions for obtaining installment plans for paying taxes can be easily found on the tax service website.

The procedure for granting deferment and installment plans for the payment of taxes and fees is of an application nature. The application form and the Procedure for changing the tax payment deadline were approved by Order of the Federal Tax Service of Russia dated September 28, 2010 No. ММВ-7–8/ [email protected] (as amended on March 19, 2012). The application is submitted to the Federal Tax Service Office for the constituent entity of the Russian Federation at the location (place of residence) of the interested person.

The list of documents that the taxpayer must attach to the application is established by Art. 64 Tax Code of the Russian Federation.

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Video: installment plan for paying taxes

Exemption from VAT for individual entrepreneurs on OSN

If you have chosen the OSN tax regime for your individual entrepreneur, it is possible to receive certain concessions. Private businessmen who keep accounts under the OSN have legally guaranteed grounds not to pay value added tax. According to Article 145 of the Tax Code of the Russian Federation, this is allowed when revenue for the previous 3 months does not exceed 2 million rubles. This rule applies only to non-excisable goods. To apply it, you must, before the 20th day of the calendar month from which you would like not to pay VAT, provide proper notification in writing and other requested documents to the Federal Tax Service office at the place of registration of the company.

The appropriate notification form can be easily found via this link.

Individual entrepreneurs on the general taxation system can qualify for VAT exemption

Table: list of documents for obtaining VAT exemption

Video: VAT exemption