Changes to the simplified tax system in 2021 (all changes in the table)

Innovations in the declaration under the simplified tax system in 2021

Useful documents on changes in tax legislation

Changes to the simplified tax system for small businesses in 2021

Innovations in taxation in simplified terms

Changes to the use of online cash registers

To best adapt to tax changes under the simplified taxation system, it is worth studying the following documents:

A complete guide to changes to the simplified tax system from 2021.

Guide to insurance premium rates for 2021

A guide to choosing your tax treatment for 2021.

In the Russian Federation, legislative initiatives that come into force from the beginning of the calendar year have already become traditional. Often, these innovations are complex, large-scale and require major changes in the work of an accountant. Often, legislators leave enough time for comfortable adaptation to changes in work.

2019 also brought not only amendments to the VAT rate and pension reform, but also a lot of new things in taxation for 2021 under the simplified tax system. We present to your attention a summary table of changes in the simplified tax system from January 1, 2021 for LLCs and individual entrepreneurs, which will help you quickly navigate the innovations that affect you specifically. We will look at some of the changes in more detail.

Changes to the simplified tax system 2021: memo

All innovations are in the table. Use it at work to avoid problems and sanctions from regulatory authorities.

Brief summary of the innovation	Until 12/31/2018	From 01/01/2019
Labor Relations
Increase in minimum wage	The minimum wage from May 1 is 11,163 rubles.	The minimum wage from January 1, 2021 is RUB 11,280.
Tax obligations
The right to reduced tariffs is canceled	Simplified residents who carried out certain types of business activities could pay contributions at a reduced rate of 20% instead of 30%	From January 1, this benefit is canceled, the contribution rate increases to 30% - according to general principles
Increase in taxes for individual entrepreneurs, which businessmen pay for themselves	In 2021, fixed payments are: to the Pension Fund of Russia - 26,545 rubles, FFOMS –— 5,840 rub. If income exceeds 300 thousand rubles, the merchant pays insurance premiums in the amount of 1% of the excess amount.	From January 1, 2021, individual entrepreneurs’ contributions for themselves will increase - they will be: to the Pension Fund of the Russian Federation 29,354 rubles, in the Federal Compulsory Medical Insurance Fund - 6,884 rubles (Article 430 of the Tax Code of the Russian Federation). There will also be a 1% payment on income.
Cancellation of movable property tax	There is a tax on movable property	The tax on movable property has been completely abolished, and mention of this tax is completely excluded from the Tax Code of the Russian Federation
OPS insurance rate	The rate is 22% until 2021, from 2021 - 26%	The Duma adopted a law that fixed the contribution rate for all years at 22%
Increase in VAT on certain categories of transactions	VAT rate - 18%	VAT rate - 20%
Increasing the contribution limit	In the Pension Fund of Russia - 1,021,000 rubles. In the Social Insurance Fund - 815,000 rubles. In FFMOS - no restrictions Read also: Reflection of VAT on advances in financial statements	OPS - RUB 1,115,000. VNiM - 865,000 rub.
Online cash registers
Product code in the receipt	No, there are no special conditions	A new item “product code” will appear in the online receipt. The code will need to be printed on the receipt if the company sells goods that are marked, for example, fur products and medicines
Using online cash registers	There are a number of payers who are exempt from using online cash registers until 2021.	From July 1, 2021, these payers must use online cash registers
Reporting
Declaration according to the simplified tax system	The declaration is submitted by all payers of the simplified tax system - organizations and LLCs	From January 1, those who use the income object will not submit a declaration under the simplified tax system, subject to the use of online cash registers
Balance deposit	The balance must be submitted to the Federal Tax Service and Rosstat	Only at the Federal Tax Service
Blocking of accounts if the company fails to submit payment payments on time	Inspectors do not have this right	Tax officials received the right to block employers’ accounts for failure to submit the ERSV. Being 10 days late will result in immediate blocking. The State Duma adopted such a law in the third reading.
New ERSV form	Firms and individual entrepreneurs fill out the ERSV using the current form, which was approved by Order of the Federal Tax Service dated October 10, 2016 No. ММВ-7-11/ [email protected]	They plan to change sections 1 and 3 in the calculation of contributions, but the Federal Tax Service has not yet developed a new form

Reasons and timing of changes

Providing declarations and reporting has always entailed additional costs on the part of entrepreneurs; therefore, it was decided to develop and simplify ways of providing financial information. Along with this, individual entrepreneurs were required to introduce online cash registers.

These innovations will come into force on 01/01/2019. At the same time, entrepreneurs will be able to provide reports for the current year without submitting a declaration only if they use cash register equipment. This will greatly simplify the system for providing information on income.

Transition conditions

Not all taxpayers can take advantage of the favorable conditions of the simplified system, but only those who meet certain conditions set out in the Tax Code of the Russian Federation. Thus, the conditions for the transition to the simplified tax system in 2019 are as follows:

The limit on income received over the previous 9 months is 112.5 million rubles.
The maximum residual value of fixed assets is 150 million rubles.
The average number of personnel is 100 people.

For example, Vesna LLC for 9 months of 2021 (April - December) received revenue in the amount of 75 million rubles. The residual value of fixed assets is 20 million. And the average number of employees is 30 people. Therefore, the company has every reason to switch to the simplified tax system in 2021.

When should I transfer the advance and total amount?

The date range for transferring advance payments remains the same as last year:

advance payment for the first quarter - from April 1 to April 25;
advance payment for six months - from July 1 to July 25;
advance payment for 9 months - from October 1 to October 25;

Quarterly payments are advance payments because they are considered an “overpayment of taxes.” Their size is calculated by the businessman himself or his accountant. As for the amount at the end of the year, it is transferred no later than the deadline for submitting reports. Taking into account weekends and holidays, the final amount for 2021 is paid:

Individual entrepreneur - until May 2, 2021;
Organizations - until April 2, 2021.

The tax office will check whether the calculation results are correct. The reconciliation will be carried out according to the simplified taxation system declaration, which you will submit in 2020. If you have transferred less than what is required, you will need to pay extra. If the advances are more than needed, the excess will be counted as an advance for the next year.

Interest rates

Almost every fiscal payment in 2021 was adjusted by officials to one degree or another. STS 2021 was no exception. However, the adjustments did not affect simplified tax rates.

So, taxpayers are given a choice. As an object of taxation, they can use either total income or the difference between income and expenses. Depending on the chosen object of taxation, the tax rate is determined. So, the simplified tax system rates 2021:

6% - if the taxpayer has chosen the object of taxation “Income”. This fiscal burden regime will be beneficial to those companies and merchants who incur minimal costs for doing business. For example, a company is engaged in providing legal advice.
15% - if the object of taxation is defined as the difference “Income minus expenses”. In this case, the income received can be reduced by the costs incurred in the reporting period to conduct the main activities. This regime will be beneficial to a manufacturing company, for example, an individual entrepreneur producing handmade toys.

Please note that the rate depends on the region of residence of the entrepreneur or the location of the organization. The authorities of the constituent entities of the Russian Federation have the right to reduce the current values to 1% and 5%, respectively.

New responsibilities of employers

There is also fresh news for employers, regardless of the regime they apply:

Employees will have to submit reports electronically when their number exceeds 10 people, and not 25, as now (Article 431 of the Tax Code of the Russian Federation).
In connection with the introduction of electronic work books, it will be necessary to submit a new form to the Pension Fund of Russia - SZV-TD (Law dated April 1, 1996 N 27-FZ, as amended on December 16, 2019). The due date is the 15th day of the month following the month in which the employee was hired, dismissed, transferred, or submitted an application for the format of the work record book (paper or electronic). If there were no such personnel events, then SZV-TD is handed over once a year.
Reports 2-NDFL and 6-NDFL for 2021 must be submitted a month earlier than usual - March 1 (Article 230 of the Tax Code of the Russian Federation). But given that this date falls on a weekend in 2021, the deadline for submission is postponed to March 2.
The Ministry of Finance proposed changing the tax rate for non-residents (from 30% to 13%), as well as the period according to which an individual receives this status. Instead of 183 days over the last 12 months, this will be 90 days of stay in the Russian Federation. For now, the proposal has the status of a bill, but could be adopted at any time in 2021, so employers should monitor this issue.
The minimum wage will increase from January 2021 to 12,130 rubles. In some regions, the minimum wage will be set at a higher level than the federal minimum wage; the amount must be clarified in the relevant regulatory act of the constituent entity of the Russian Federation.
If the tax office assesses additional personal income tax during an audit, the employer will pay it from its own funds, and not from the employee’s income. Amendments to Article 226 of the Tax Code of the Russian Federation were introduced by Law No. 325-FZ of September 29. 2021. The Federal Tax Service believes that now employees will not be interested in hiding the receipt of gray salaries, because they will no longer have to pay personal income tax at their own expense on such income.

Insurance premiums for the simplified tax system

The amount of insurance coverage directly depends on the availability of hired personnel. Thus, individual entrepreneurs without employees are required to pay contributions only for themselves.

IMPORTANT!

Important! Insurance premiums for individual entrepreneurs for themselves will increase from 2021. You will have to pay 29,354 rubles for pension insurance and 6,884 rubles for medical insurance. If entrepreneurs’ income exceeds 300,000 rubles per year, they will have to pay an additional 1% on compulsory pension insurance contributions.

If there are employees on staff, you will have to pay in the general mode. These conditions also apply to individual entrepreneurs and employees. That is, in addition to contributions for himself, the entrepreneur will pay insurance coverage for hired workers.

Please note that officials have canceled the reduced rates for insurance premiums for individual entrepreneurs and organizations using the simplified tax system. Until 2021, such policyholders could only pay a 20% compensatory insurance contribution. From 2019, you will have to pay more - 30% (22% - OPM, 5.1% - Compulsory Medical Insurance, 2.9% - VNiM) plus contributions for injuries. The limits on insurance premiums have also been increased: for OPS - 1,115,000 rubles (from excess - 10% tariff), for VNiM - 865,000 rubles (from excess - 0% tariff).

IMPORTANT!

Important! When making payments to employees, take into account the next increase in the minimum wage. From 01/01/2019, the minimum full-time wage cannot be lower than 11,280 rubles.

Illegal use of the simplified tax system

If it turns out that from the moment of state registration the company has been using the simplified tax system illegally, without notifying the tax authorities in a timely manner about the transition to this special regime, then it will have to pay additional generally established taxes and penalties for the entire period of operation. For transactions related to the sale of goods (works, services), VAT will need to be charged at the full rate. Moreover, even in the case of the sale of goods (works, services) for which reduced rates of 0% and 10% are provided (letter of the Ministry of Finance of Russia dated December 17, 2012 No. 03-07-11/537).

In this case, when additional VAT is calculated, it will be possible to deduct the amount of “input” tax in the manner prescribed by Article 172 of the Tax Code.

Natalya Stupishina,
tax lawyer

The declaration will be canceled

A tax return under the simplified tax system is a special type of reporting that simplifiers submit once a year. The deadline for submission is 04/01/2019. However, tax officials proposed canceling the mandatory reporting.

But it’s too early to rejoice, the pleasant innovations will not affect all simplifiers, but only taxpayers under the simplified tax system “Income” who use online cash registers. Thus, information about all income-generating transactions of the taxpayer is automatically sent to the Federal Tax Service. This is provided by new generation cash register equipment (online cash register machines). Consequently, inspectors have all the necessary information to calculate the simplified tax system. This means that the declaration will simply duplicate the existing data, and they decided to cancel the report.

simplified tax system - what are the advantages?

There are five taxation systems in Russia, which differ in the amount of taxes and the amount of reporting. The simplified system or simplified tax system is the most common among small businesses. It suits almost everyone and makes the life of an entrepreneur easier: one tax replaces several, you need to report once a year and there are ways to pay less.

We are talking here not only about payments to the budget in the form of taxes, but also about payments for pension, medical and social insurance of employees. Such transfers are called insurance premiums, and sometimes salary taxes (which is incorrect from an accounting point of view, but understandable for those who pay these contributions). Insurance premiums amount on average to 30% of the amounts paid to employees, and individual entrepreneurs are required to pay these contributions for themselves personally.

Tax rates under the simplified system are significantly lower than the tax rates of the general taxation system. For the simplified tax system with the object “Income”, the tax rate is only 6%, and from 2021, regions have the right to reduce the tax rate on the simplified tax system for income to 1%. For the simplified tax system with the object “Income minus expenses,” the tax rate is 15%, but it can also be reduced by regional laws down to 5%.

In addition to the reduced tax rate, the simplified tax system for income has another advantage - the ability to reduce advance payments for the single tax due to insurance premiums transferred in the same quarter. Legal entities and individual entrepreneurs-employers operating under this regime can reduce the single tax by up to 50%. Individual entrepreneurs without employees on the simplified tax system can take into account the entire amount of contributions, as a result of which, with small incomes, there may be no single tax payable at all.

On the simplified tax system Income minus expenses, you can take into account the listed insurance premiums in expenses when calculating the tax base, but this calculation procedure also applies to other tax systems, so it cannot be considered a specific advantage of the simplified system.

Thus, the simplified tax system is undoubtedly the most profitable tax system for a businessman if taxes are calculated based on the income received. The simplified system may be less profitable, but only in some cases, compared to the UTII system for legal entities and individual entrepreneurs and relative to the cost of a patent for individual entrepreneurs.

Accounting simplified tax system reporting

The obligation of simplifiers to submit financial statements to the Federal Tax Service was introduced on January 1, 2013, although previously this did not apply to them.
The requirement to submit accounting reports was introduced in Part 1 of Art. 6, part 2 art. 13 of the Law on Accounting dated December 6, 2011 No. 402-FZ. The law identifies economic entities to which this obligation does not apply, but there are no simplified organizations among them. Firms using the simplified tax system, as a rule, belong to small businesses, whose representatives can submit a “stripped-down” set of reports: only a balance sheet and a report on financial results, the forms of which are approved by Appendix No. 5 to Order No. 66n of the Ministry of Finance of the Russian Federation dated July 2, 2010. Read more about simplified accounting and reporting in the following materials:

“Simplified reporting for small businesses”;
“How to fill out a balance sheet using the simplified tax system?”;
“Accounting for an LLC using the simplified tax system: submitting reports”;

Who fills out section 3 “Report on the intended use of property”

If it is necessary to fill out this section, another sheet is added to the declaration. It is filled in when funds for targeted financing are received during the tax period. When calculating the amounts required to be included in the report on intended use, you must be guided by Art. 251 Tax Code. Subsidies allocated to an autonomous institution do not need to be taken into account in this section. We discussed the calculation of the values of this section in detail in the article “Completing Section 3 of the Declaration under the simplified tax system for non-profit organizations.”

Who is not entitled to apply the simplified tax system

The ban on using the simplified tax code applies to certain taxpayers. They do not have the right to apply the simplified taxation system (clause 3 of Article 346.12 of the Tax Code):

banks;
insurers;
NPFs and investment funds;
professional participants in the securities market;
producers of excisable goods;
pawnshops;
those who extract and sell minerals not included in the list of commonly occurring ones;
gambling organizers;
private notaries, lawyers;
participants in production sharing agreements;
paying the unified agricultural tax (UST);
microfinance, government, budgetary, foreign organizations;
recruitment/employment agencies;
companies with branches;
organizations with a participation share of other legal entities exceeding 25 percent.

The last paragraph does not apply for the following cases:

when an organization was created with contributions from public organizations of disabled people, it has at least half of its employees with disabilities, and their share is a quarter or more of the total payroll;
for non-profit organizations, including consumer cooperation;
when an economic society or partnership is established by budgetary and autonomous scientific societies or budgetary and autonomous educational institutions of higher education for the practical application of scientific developments, the exclusive rights to which belong to these societies.