For landlords, the most suitable tax regime is often the simplified tax system “income”, but it is better to check the conclusions for each specific case by calculations. An example of calculations and 4 situations when it is better to choose a different mode.
For organizations and entrepreneurs, taxation of rental real estate is possible in several options. Each has its own advantages and disadvantages. Let's look at what budget contributions await the property owner and how to choose the optimal tax regime.
Special tax regimes for the lessor
Special modes (STS, UTII, PSN) are distinguished by ease of accounting and reporting, reduce the amount of taxes paid and, for a profitable business, reduce the workload.
All payers under special regimes are exempt from VAT, personal income tax of the entrepreneur, income tax and partially property tax - instead of them, one tax is established.
Features of property tax for special regimes:
- paid for office, retail real estate, catering and consumer services facilities, administrative centers, if the corresponding law has been adopted in the region and the cadastral value of the areas has been determined;
- rate up to 2% - accepted by local legislation.
Special modes have their own application characteristics.
Two types of "simplified"
If the lessor meets the established criteria, choosing the simplified tax system is often optimal.
A simplified system is available if annual income does not exceed 150 million rubles. (limit from 01/01/2017), the cost of fixed assets does not exceed 150 million rubles. and the number of employees is no more than 100.
"Simplified" can be used in two versions - at the choice of the taxpayer.
- rate 15%;
- the basis for calculation is revenue reduced by costs;
- minimum deductions - 1% of receipts.
- rate 6%;
- base - revenue, i.e. all receipts;
- There are deductions - insurance premiums are subtracted from the calculated payment.
In the regions, benefits may be introduced, but this is rare for rental businesses.
Paying 15% of profit is more profitable than 6% of income only if the cost-to-revenue ratio is greater than 0.6 - this is extremely rare for rentals.
However, if a legal entity rents out illiquid space for a nominal fee, so that downtime does not bring losses, it is profitable to use the simplified tax system of 15%. The rate is lower than the income tax, there is no VAT, and the amount of deductions can be reduced to a minimum of 1%.
Entrepreneurs in the first type do not actually apply the “simplified tax”, since when renting out non-residential premises to individual entrepreneurs, taxation in the form of the simplified tax system of 6% will reduce the calculated tax on “personal” contributions to the Pension Fund and the Social Insurance Fund. For small rental income, this can reduce the payment to zero, in other cases it can reduce the tax burden.
Patent system for individual entrepreneurs
The regime is available only to entrepreneurs who own real estate and earn no more than 60 million rubles from it. in year.
- enforced by regional law (not available in all cities);
- rate from 7.5 to 15%;
- the basis for calculation is the level of income approved by law (“imputed”);
- Deductions for contributions and benefits apply.
Organizations and individual entrepreneurs with employees can reduce the payment (up to 50%) by the amount of paid contributions and benefits. Individual entrepreneurs without employees have the right to reduce UTII by the entire amount of “personal” insurance premiums. Tax accounting and reporting - to a minimum extent.
It is beneficial to use a special regime if you have high and stable income from tenants: if there is no revenue for a certain period, you will still have to pay the “imputation”.
General system: what taxes to pay and when application is justified
This is the most complex mode in terms of accounting and reporting. Traditional (general) taxation involves the payment of three main taxes:
- on the profits of organizations and personal income tax for entrepreneurs:
rates are 20% for legal entities and 13% for individual entrepreneurs;
accrued from profit, i.e. allows you to take into account costs;
if expenses equal or exceed revenues, the payable will be zero.
- for property:
calculated based on the value of the property;
the rate is up to 2.2% if the calculation is made according to the residual value, and up to 2% if according to the cadastral value; The specific size depends on the region.
- for added value:
rate 18%;
in fact, 18/118 of the rent will be paid without utilities and other similar payments;
with quarterly revenue less than 2 million rubles. you can get a VAT exemption.
The main disadvantage of OSNO for rental business is the high tax burden. The share of costs when renting out non-residential premises is low. Therefore, the ability to track expenses - an advantage of OSNO - does not have any special advantages.
In what cases can you not do without a traditional system?
- The taxpayer cannot apply the simplified one because it does not meet its criteria. For example, real estate costs more than 150 million rubles, or income has exceeded the established limit (see below for criteria).
- Renting premises is a non-core business and brings in insignificant profits. For example, a small part of the cafe area is rented out, and the tax system for the cafe is OSNO. In this case, it is also advisable to leave the lease on the common system.
Choosing the most profitable option - examples of calculations
The choice of taxation system depends on many factors. For each specific case, it is better to carry out preliminary calculations.
Example 1
Alta LLC leases retail space (100 sq. m.), utility bills are included in the rent.
- 219,66 - 13,18 = 206,48
- (1,220.34 - 650.40) × 20% = 113.99
- (1,440.00 - 663.58) × 15% = 116.46
- 1,440.00 × 6% - 27.18 = 59.22
- basic yield for an area of more than 5 square meters. m is 1.2 thousand rubles per month / sq. m. m
- (1,440.00 × 0.9 × 1.798 × 15%) - 27.18 = 322.35 (the deflator coefficient is 1.798 for 2017; the adjustment factor is assumed to be 0.9)
Example 2
The conditions are similar to the previous ones, but the lessor is an individual entrepreneur. Insurance premiums in the amount of 39.39 thousand rubles will be added to mandatory deductions.
- (1,220.34 - 650.40 - 39.39) × 13% = 68.97
- (1,440.00 - 663.58 - 39.39) × 15% = 110.54
- 1,440.00 × 6% × 50% = 43.20 (can be reduced by no more than half)
- (1,440.00 × 0.9 × 1.798 × 15%) - 27.18 - 39.39 = 282.96
- 1,000.00 × 6% = 60.00 (based on the basic yield established in Moscow, Vnukovo)
For the examples considered, the choice is obvious: a simplified taxation system with a rate of 6% allows you to minimize the tax burden.
However, the conclusions are valid for specific situations; in some cases it is worth focusing on other options:
- BASIC: allows you to submit a VAT refund if the object has just been purchased and the seller is a VAT payer. In addition, on a general system, with high current costs, the tax may be zero.
- Simplified tax system “income - expenses”: it is profitable if it is better to do without VAT, but the share of costs is high (exceeds 60% of revenues).
- UTII: you can save for areas larger than 5 square meters. m, if the rent is above 5,400 rubles. / sq. m.
- PSN: profitability depends on the region. Thus, for the city of Novosibirsk, according to the conditions discussed above, the cost of a patent will be 24 thousand rubles, and a patent will turn out to be the most profitable solution.
However, the patent tax system (PTS) has not received wide recognition: according to the Apartment Rental Department INCOM-Real Estate, it is currently used by only 10% of the capital’s landlords who pay taxes as part of rental housing, the rest file tax returns. Among the reasons for the low popularity of the patent, experts highlight, in particular, several circumstances: firstly, the lack of connection between the cost of this permit and the actual rental yield; secondly, the final expenses of PSN participants (including mandatory payments to individual entrepreneurs) are higher than the income tax for individuals; In addition, the status of an individual entrepreneur significantly limits the rights of the landlord in the event of the sale of a rented apartment. Leading legal consultant of the INCOM-Real Estate Legal Service Kirill Kokorin comments on the characteristics of a patent as a type of tax regime and presents his opinion on the profitability of this system for the landlord.
Purchasing a patent: limitation and price
Kirill Kokorin, leading legal consultant of the INCOM-Real Estate Legal Service: “The acquisition of a patent is only legal for individual entrepreneurs, that is, individuals without individual entrepreneur status cannot use this taxation system. The cost of a patent in the Moscow region is based on the amount of potential annual income from renting out an apartment, which is determined by the Moscow government. As of 2018, the tax rate is 6% of such income. The price of a rental activity permit depends on the location (county and region) where the rental apartment is located and its size.
I will give examples. Patent for an apartment up to 50 square meters. m, located in the South-Western Administrative District, costs 18,000 rubles (the potential annual income from leasing such an object, established by the Moscow government, is 300,000 rubles per year; calculation: 300,000 X 6% = 18,000 rubles). The cost of a patent for an apartment of 75 square meters. m, located in the Central Administrative District, - 54,000 rubles (potentially possible annual income from leasing such an object, established by the Moscow government, is 900,000 rubles per year; calculation: 900,000 X 6% = 54,000 rubles). The amount of actual income, which may be much lower, is not taken into account when calculating the cost of a patent.
The patent system is unpopular - according to INCOM-Real Estate statistics, no more than 10% of those who rent out an apartment in Moscow and pay taxes on this income adhere to this tax regime.”
The article will touch upon the main points regarding tax reporting of individual entrepreneurs. To which state authorities should you submit it, how to do it correctly and in what time frame - further.
Before you start doing business, you need to carefully study the reporting documentation - the rules for its preparation and submission.
It will need to be provided to the tax authorities, so it is important to know all the subtleties and nuances.
What you need to know
The legislation establishes various regimes for taxation.
Depending on the type of activity that an individual entrepreneur chooses, the regime of his tax payments and the number of documents to be submitted to the tax office are determined.
To facilitate the activities of individual entrepreneurs, special regimes have been introduced, which include the simplified tax system (6% and 15%), UTII, unified agricultural tax, patent system.
As soon as an individual entrepreneur chooses the best option for himself, he needs to start studying the documentation for submission to the tax service.
Reporting types:
| BASIC | In this case, taxes on property, individuals and value added are paid. Required documents - declaration, reporting in form 3-NDFL and 4-NDFL |
| simplified tax system (15% and 6%) | Simplified taxation systems. You will only have to submit annual reports |
| UTII | They use individual entrepreneurs who work in the field of trade and transportation. The declaration must be submitted quarterly |
| Unified agricultural tax | Entrepreneurship in the field of agriculture. A report is submitted in the form of a declaration, and if the entrepreneur has land, he will also have to report for the tax on it |
| Patent system | Least in demand. A patent makes up 6% of an individual entrepreneur’s income. In this case, a declaration is not provided; it is necessary to keep a ledger of income and expenses |
If an individual entrepreneur has employees, then it is necessary to report for them. Regardless of the type of taxation, individual entrepreneurs are required to transfer personal income tax every month.
It is deducted from employee salaries. Also at the end of the year it is necessary to provide Form 2-NDFL reports for each employee.
Reporting is divided into 3 types - for the Pension Fund, the Tax Service and the Social Insurance Fund.
You must submit to the Federal Tax Service:
- headcount report;
- certificates type 2-NDFL;
- income register;
- reporting form 6-NDFL.
For the Pension Fund you will need:
- calculations for paid insurance for employees;
- personalized accounting;
- report S3V-M.
Reports are submitted to the Insurance Fund for paid insurance premiums for employees (if any), form 4-FSS.
Basic Concepts
| Tax return | A written application submitted by the taxpayer to the inspectorate. It is provided for each tax separately and contains information about income and its sources, expenses |
| Individual entrepreneur | A person of physical type who has been registered with state authorities and carries out entrepreneurial activities |
| Tax service | Executive authority whose main function is to control compliance with the law |
| UTII | A single tax on imputed income; the tax is levied not on the received profit, but on the expected |
| Unified agricultural tax | Unified agricultural tax; applies instead of paying tax on income received |
| Patent system | A tax regime that is only allowed to apply to individual entrepreneurs. If an individual entrepreneur has more than 15 employees, then it is not permissible to use the system |
| Personal income tax | Income deducted from employee salaries |
| simplified tax system | A simplified tax system, the purpose of which is to reduce the tax burden on business entities and simplify accounting |
| BASIC | General taxation system; accounting is kept in full, all types of taxes are paid |
When should I take it?
The deadline for submitting the declaration depends on many factors - the type of activity, taxation regime and whether the individual entrepreneur has hired workers.
If an individual entrepreneur has hired employees, then reports must be submitted every 4 months.
All information must be provided to the Social Insurance Fund. Available for rent in the middle of the quarter, but no later than the 15th.
After delivery, be sure to notify the Pension Fund. If there are no employees, then information should be submitted after the 20th quarterly. Payment of the single tax is due by the 25th.
Every year, individual entrepreneurs must take the following:
Information submitted to the tax service about the average number of employees must be provided before January 20. About workers' incomes - until April 30.
If an individual entrepreneur uses a simplified taxation system, then fewer reports are expected.
They are due within the following deadlines:
This applies to the simplified tax system at 6%. Entrepreneurs using the simplified tax system at 15% must submit the following:
Legal basis
The concept of a tax return is highlighted in Article 80 (clause 1) of the Tax Code.
According to Article 227, paragraph 6 of the Tax Code, personal income tax must be paid to the tax office at the place of registration by the 15th.
Chapter 23 of the Tax Code establishes the following:
According to Article 398 of the Tax Code of the Russian Federation, starting from January 1, 2018, individual entrepreneurs are exempt from filing a land tax return.
The procedure for submitting individual entrepreneur reports to the tax office in 2018
The following changes occurred in 2018:
What documents need to be prepared
The following reports are submitted to the tax service:
- balance form No. 1;
- documents on changes in capital;
- documentation of income and expenses;
- certificates of cash flow in the account;
- Form No. 6 – that the money has been received;
- appendices to the accounting balance sheet;
- certificate of number of employees;
- explanatory notes (if required).
Which tax office should I submit to?
All reporting and other documents are submitted to the tax office at the place of registration of the individual entrepreneur.
How to serve
There are several ways to submit tax reports:
| Self-employed individual entrepreneur | Fills out paper documentation and submits it to the tax office |
| A representative is selected | To whom a power of attorney (certified by a notary) is issued and who is responsible for submitting reports |
| Having prepared the necessary documents, the individual entrepreneur takes them to a lawyer and has them certified | After that it is sent by mail. In this case, it is necessary to make an inventory of the investment and fill out a notification form |
| Find a company | Provides accounting and tax support, and entrust your affairs to her |
| You can submit your individual income tax return online | Tax inspectors require this particular delivery option, since the data is easier and faster to process, and there is no need to enter information from the document into the database |
Tax difference with LLC
| Tax type | IP | OOO |
| simplified tax system “income” - 6% | Replaces imputed tax, property tax and VAT. There should be no more than 100 employees, income should be less than 60 million rubles per year. | Exempt from VAT, property and profit taxes. Maintaining accounting records and a ledger of income and expenses is mandatory. |
| Simplified tax system “income minus expenses” - 15% | Replaces personal income tax, property tax and VAT. | Exempt from other taxes |
| UTII | The amount of profit does not matter; expenses do not need to be confirmed. There is no need to pay personal income tax, VAT and other taxes | The amount of income is determined by law. Exemption from other taxes |
| Unified agricultural tax | Mandatory maintenance of a ledger of expenses and income, taxes are not paid | No taxes paid |
| Patent regime | The number of employees should not exceed 15 people, income should not exceed 60 million rubles per year | Not used |
There are fixed taxes that only individual entrepreneurs pay; organizations are exempt from them:
- to the Pension Fund;
- to the tax service - Federal Tax Service;
- to the Social Insurance Fund.
Emerging nuances
The reporting of individual entrepreneurs has certain nuances. Using a single tax on imputed profit, it is also necessary to submit a UTII declaration to the tax authorities.
Otherwise, the individual entrepreneur faces liability in the form of a fine, the amount of which is 5% of the tax amount.
With UTII
No matter how much income an individual entrepreneur receives, the amount of tax in this system will be fixed.
If an individual entrepreneur has expressed a desire to use this regime, he needs to submit an application for UTII to the tax service.
If the entrepreneur is not registered with the tax service, you must first register.
There are nuances under which it is allowed to use the UTII mode:
- a tax on a certain type of activity was introduced in the territory where the individual entrepreneur is registered;
- number of employees no more than 100 people;
- the requirements of the Tax Code are met - hall area and others.
The declaration is submitted to the tax service every quarter - 4 times a year, until the 20th.
When using UTII, 2 values are taken into account - the amount of expected profit and 15% of the expected income (tax amount).
Under the general taxation regime
There are few entrepreneurs using this system. Certain types of activities require the use of this particular mode.
It is used when the activities of an individual entrepreneur do not fall under UTII and a simplification is not selected. The use of OSNO does not relieve one from the obligation to pay personal income tax.
The amount of reporting documentation depends on the availability of employees. If there are no workers, then the following is given:
- value added tax declaration;
- for the income of individuals, form 3-NDFL;
- reporting of estimated income, form 4-NDFL.
For entrepreneurs with employees, in addition to the above declarations, a report of form 2-NDFL is submitted. It is compiled for each employee separately. You can submit in person, by mail or online.
However, in 2018, changes came into effect according to which, if an individual entrepreneur has more than 25 employees, reporting must be submitted only electronically. In this case, you must have a digital signature.
Submission of zero reporting
When carrying out business activities, downtime is possible due to many reasons. The result is that the individual entrepreneur did not make a profit.
In the absence of income or complete cessation of activity, the obligation to report to state authorities remains. In this case, zero reporting is submitted.
The legislation does not contain such a term, but it does not prohibit filing reports of lack of profit.
When preparing zero reporting, it is assumed that no activity was carried out during a certain period of time, therefore there is no basis for calculating tax.
The preparation of such reports is almost the same as the usual ones. The only difference is that there are no indicators in the columns.
An individual entrepreneur can prepare zero reporting independently, without the help of an accountant.
There is no special form, just fill out a standard form. When using the simplified system, reporting must be submitted by April 30.
At the same time, there is a nuance - if during the course of the activity the expenses were higher than the income, then the individual entrepreneur is obliged to pay 1% of the income.
In this case, the declaration is no longer considered zero. Under the patent taxation regime, zero reporting is not submitted.
When paying a single tax on imputed income, individual entrepreneurs do not have the opportunity to provide a zero tax.
Under the general system, zero reporting is provided. Criteria for submitting such a declaration:
- there is no movement on the individual entrepreneur’s current account;
- the entrepreneur did not conduct business, did not issue checks or invoices;
- The individual entrepreneur has recently been registered.
Zero declarations are submitted in the same order and within the same time frame. Zero reporting is submitted to the Pension Fund and the Social Insurance Fund if the individual entrepreneur has employees.
The law does not establish a fine for failure to submit reports, but sanctions for late submission do exist.
Thus, when carrying out business activities, tax reports are submitted to various state bodies. It must be provided within the time limits established by law.
If no activity is carried out, the individual entrepreneur must deregister himself as a taxpayer on imputed income.
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After registration, all individual entrepreneurs need to pay insurance premiums
After registering an individual entrepreneur, you need to pay contributions to the Pension Fund for pension insurance and to the Federal Compulsory Medical Insurance Fund for health insurance.
Individual entrepreneur insurance premiums for 2017: 27,990 R + 1% of income over 300,000 rubles
The total amount of contributions depends on the income of the entrepreneur. Please note, not from profit, but from income:
- on OSNO - all income subject to personal income tax;
- on the simplified tax system - income from the sale of goods or services and non-operating income (for example, material benefits). Expenses are not taken into account, even if you are on the simplified tax system “income minus expenses”;
- for UTII - imputed income, calculated on line 100 of the UTII report for each quarter;
- on a Patent - potential income established in the region for your type of activity. The amount of potential income must be adjusted for the period for which you purchased the patent.
When combining several taxation systems, income must be added up.
December 31, 2017- last day to pay the fixed part of 27,990 rubles.
April 2, 2018— last day to pay 1% of income over 300,000 rubles.
All LLCs must maintain accounting records and submit accounting reports
You have to take into account information about the organization’s activities and its financial situation. All business transactions are important for accounting: selling goods, purchasing materials from suppliers, providing services to customers, paying salaries to employees. Each operation must be confirmed by a document: an agreement, a deed, an invoice, a payment order or another.
At the end of the year, all data is summarized into one report, which is called “accounting statements”. This report is primarily needed by the tax authorities and Rosstat; it should be submitted every year by March 31.
Accounting is not an easy topic, but Elba will help you deal with it without an accountant. Read more details
in the article: “Accounting without an accountant: what LLC needs to know.”
Taxes and reports on the simplified tax system, UTII and patent
Other taxes and reports depend on the chosen taxation system. Beginning entrepreneurs most often choose the special modes of the simplified tax system, UTII and patent, so we will talk about reports for these systems.
Taxes and report on simplified tax system
If you decide to work under the simplified tax system, at the end of the year you need to submit a report to the tax office. For LLCs, the deadline is March 31, and for individual entrepreneurs, April 30. A report on the simplified tax system is the main document that will help you check whether you paid taxes correctly, whether you hid part of your income from the state and other important things. Even if you did not earn anything last year, you will still have to send a so-called “zero” declaration.
Despite the fact that the report is submitted once a year, the tax must be paid quarterly:
- for the quarter until April 25;
- half a year before July 25;
- 9 months before October 25th.
Taxes and UTII report
The UTII report contains information about activities and indicators that affect the amount of tax. If you applied for UTII, you need to report to the tax office every quarter by the 20th of the next month:
- I quarter - until April 20;
- II quarter - until July 20;
- III quarter - until October 20;
- IV quarter - until January 20.
The tax must also be paid every quarter, but the deadline is set on the 25th.
Taxes on a patent
The patent is only suitable for individual entrepreneurs who have less than 15 employees and whose income does not exceed 60 million rubles per year. The main advantage is that you do not need to submit a report to the tax office regarding activities on the patent. If you have applied for a patent, then you just need to pay the patent amount on time.
Patent payment terms
A patent for a period of up to 6 months must be paid no later than the expiration of the patent.
A patent for a period of 6 months to a year is paid in two parts:
- 1/3 of the amount no later than 90 days after the start of the patent.
- The remaining part, 2/3 of the amount, no later than the expiration date of the patent.
Reports for individual entrepreneurs with employees and all LLCs
For individual entrepreneurs, the number of reports increases only with the appearance of employees. And for an LLC, reports on employees are required immediately after creation, because the organization cannot work on its own and is considered an employer by default.
Every month, employees must make contributions to the tax office and the Social Insurance Fund. Total contributions range from 30.2% to 38% of wages, but benefits are available for some types of business. We talked about existing benefits in the article “Who can save on employee contributions.” All information about insurance premiums is included in reports for the tax and Social Insurance Fund.
Tax reports for employees
Since 2017, you will need to submit calculations of insurance premiums for employees to the tax office. It is submitted once a quarter - until the 30th day of the month following the quarter (until April 30, until July 30, until October 30, until January 20).
Reports to the Pension Fund for employees
Every month, the SZV-M report is submitted to the Pension Fund of Russia, which contains a list of employees and their SNILS numbers. The report must be submitted by the 15th of each month.
A new report on employee experience has appeared. The first time you will need to report before March 2, 2018 - for 2017.
Report to the Social Insurance Fund for employees
Once a quarter you need to report to the Social Insurance Fund about the contributions for employee injuries that you paid there. The report in Form 4-FS on paper is submitted by the 20th of the month following the quarter, and via the Internet - by the 25th.
Personal income tax report for employees
As an employer, you are required to withhold 13% tax from your employee’s salary. This is personal income tax - personal income tax. It must be transferred to the tax office no later than the next day after salary payment. Then reflect all information about employee income and personal income tax withheld and paid in the reports.
Every quarter the tax office expects the 6-NDFL report. It contains the amount of income that all employees received, tax deductions and the total amount of personal income tax.
Deadlines are set:
- for the first quarter - until April 30;
- for the second quarter - until July 31;
- for the third quarter - until October 31;
- a year - until April 1.
In addition, at the end of the year, before April 1, send 2-NDFL certificates for each employee. They contain the monthly income of each employee, tax deductions and personal income tax amounts.
Report on the average number of employees
This is the smallest report that contains a single indicator - how many people worked for you on average last year. This must be reported to the tax office annually by January 20th.
For an LLC, the first report must be submitted earlier - before the 20th of the next month after registration, and then only at the end of the year until January 20.
Additionally: report to Rosstat
Sometimes Rosstat conducts studies of individual entrepreneurs and LLCs, which may require statistical information about your business. In this case, an official letter will be sent to your address with a form attached and instructions for filling it out. But the likelihood of this is not very high - the letter will be sent to you only if you are included in the observation sample.
Don’t be alarmed, you don’t have to remember all these taxes, reports and deadlines. Elba will create your personal tax calendar and remind you of all important deadlines in advance - sign up and try it yourself.
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What kind of reporting do individual entrepreneurs keep? There are differences between entrepreneurs and entrepreneurs. If one submits a single declaration once a year, then the other can fill out several reports every quarter, or even month. This depends on the chosen tax regime and whether the entrepreneur has employees.
Other types of reporting
Post-registration reporting
Reports of an entrepreneur who does not carry out activities
The entrepreneur’s obligation to report to the tax authorities on his activities arises immediately after registration and remains with him until the closure of the individual entrepreneur.
Types of tax reporting for individual entrepreneurs
Entrepreneurs on OSNO at least fill out a personal income tax and VAT declaration.
Individual entrepreneur reporting to the simplified tax system and unified agricultural tax, if there are no employees, is only one declaration per year.
Entrepreneurs report to UTII every three months.
Declarations for other taxes may be added to this if, due to the nature of the individual entrepreneur’s activity, they will have to pay them.
The obligation to pay tax does not always mean the obligation to fill out a tax return. For example, the Federal Tax Service calculates property tax and land tax for entrepreneurs themselves and sends a notification. The businessman only has to pay the amount specified therein, and does not need to file declarations.
Deadlines for submitting declarations:
1. On BASIC:
. VAT - until the 25th day after the end of the reporting quarter;
. 3-NDFL - once a year until April 30.
3. On UTII - until the 20th after each quarter.
Reports of individual entrepreneurs with employees
If an entrepreneur has employees, he must also report to the tax office on personal income tax and insurance premiums for employees, and annually submit information about the average number of employees. These reports are mandatory for all employers, regardless of what tax regime they apply.
In addition to the Federal Tax Service, employers monthly send to the Pension Fund information about insured persons in the SZV-M form and about the length of service of employees in the SZV-experience form. The quarterly form 4-FSS for accident insurance contributions is submitted to the Social Insurance Fund.
Deadlines for submitting reports to individual entrepreneurs and employees.
received
fee 46%
1. You can lease it both on behalf of a sole proprietor and on behalf of an individual entrepreneur. But, since we are talking about non-residential premises and it is possible to establish signs of entrepreneurial activity (systematic nature, entrepreneurial risk) + the property is rented to a legal entity, I think it would be better if it is rented from an individual entrepreneur. In addition, under the simplified tax system, rental income will be taxed at 6%, and not 13%, as for individuals. But when renting from an individual entrepreneur, it will be necessary to make changes to the list of activities carried out (for example, OKVED code 70.20.2 “Renting out your own non-residential real estate”).
2. In order to bring to criminal liability under Art. 171 of the Criminal Code, the prosecution will have to prove the very fact of carrying out business activities without registration and causing major damage to the state - 1,500,000 rubles. It is also theoretically possible to be held accountable under Part 1 of Art. 14.1 of the Code of Administrative Offenses ((entails the imposition of an administrative fine in the amount of five hundred to two thousand rubles).
Therefore, if you are an individual entrepreneur using the simplified tax system, make changes to the register in terms of OKVED and pay a tax of 6% on income.
received
fee 27%
Hello!
In accordance with Article 18 of the Civil Code of the Russian Federation, citizens may own property; inherit and bequeath property; engage in business and any other activity not prohibited by law; create legal entities independently or jointly with other citizens and legal entities; make any transactions that do not contradict the law and participate in obligations; choose a place of residence; have the rights of authors of works of science, literature and art, inventions and other results of intellectual activity protected by law; have other property and personal non-property rights.
According to paragraph 4 of Art. 208 of the Tax Code of the Russian Federation, income of individuals from sources in the Russian Federation includes income received from leasing or other use of property located in the Russian Federation.
According to paragraph 3 of Article 210 of the Tax Code of the Russian Federation, for income for which the tax rate established by paragraph 1 of Article 224 of the Tax Code is provided, the tax base is determined as the monetary expression of such income subject to taxation, reduced by the amount of tax deductions provided for in Articles 218-221 of this Code , taking into account the features established by this chapter. The tax rate is set at 13 percent.
That is, you have the right to rent out property as an individual and you will need to pay 13% tax on the amount of income. One-time (non-systematic) leasing of property cannot be regarded as a business activity, and therefore cannot be qualified as an administrative offense (Article 14.1 of the Code of Administrative Offenses of the Russian Federation) or illegal business activity (Article 171 of the Criminal Code of the Russian Federation),
By virtue of Art. 2 of the Civil Code of the Russian Federation entrepreneurial activity is recognized as independent activity carried out at one’s own risk, aimed at systematically obtaining profit from the use of property, sale of goods, performance of work or provision of services by persons registered in this capacity in the manner prescribed by law.
If you rent out property to carry out business activities, that is, as an individual entrepreneur, then you should consider the following.
Entrepreneurial activity includes not only leasing property, but also preparatory actions, for example, carrying out repair and construction work, searching for potential tenants, which is confirmed by established judicial practice (Resolutions of the Federal Arbitration Courts of the West Siberian District dated December 16, 2009 N A70- 4191/2009, Central District dated 08/31/2009 N A64-6950/08, East Siberian District dated 09/09/2009 N A33-6383/09, Central District dated 08/15/2007 N A36-2300/2006).
Thus, temporary non-use of property in business activities during the tax period, in particular, the absence of lease agreements, repairs of premises, etc., as well as the use of property (part of it) for the management needs of an individual entrepreneur, cannot in itself be considered as use of this property for purposes other than business activities.
Since Law N 2003-1 does not define the deadlines for submitting documents confirming the right of an individual entrepreneur to be exempt from the obligation to pay property tax for individuals, such documents must be submitted within a time frame that allows the tax authority to calculate the amount of property tax for individuals and send the taxpayer a tax return. notification of tax payment by August 1.
P verification of the actual use of property by individual entrepreneurs in business activities should be carried out by tax authorities as part of tax control.
at the rate of 6 percent.
In accordance with paragraph 3 of Art. 346.11 of the Tax Code of the Russian Federation, the use of a simplified taxation system by individual entrepreneurs provides for their exemption from the obligation to pay property tax for individuals in relation to property, used for business activities .
Thus, in the case of registration as an individual entrepreneur and payment of a single tax associated with the use of the simplified tax system, from income received from the provision of the premises in question for rent, You will not be a payer of personal property tax in relation to the specified premises.
At the same time, according to the regulatory authorities, in order to apply the right to exemption from property tax, an individual entrepreneur using the simplified tax system must submit to the tax authority:
- application for exemption from property tax in any form;
- documents confirming the use of real estate for business activities (in your case, such a document will be a lease agreement).
Such clarifications, in particular, are contained in the Letter of the Ministry of Finance of Russia dated 02/01/2010 No. 03-05-04-01/06.
According to Art. 346.31 of the Tax Code of the Russian Federation, the single tax rate is set at 15 percent of the amount of imputed income. HOWEVER, the tax system in the form of a single tax on imputed incomeis installed for certain types of activities that are specified in Article 346.26 of the Tax Code of the Russian Federation.
Thus, since an individual entrepreneur can be exempt from paying property tax for an individual, it will be most profitable to rent out property as an individual entrepreneur using the simplified tax system.
Sincerely, F. Tamara
United Ngaol
received
fee 27%
In cases where a person not registered as an individual entrepreneur acquired residential premises or other real estate for personal needs or received it by inheritance or under a gift agreement, but due to the lack of need to use this property, temporarily leased it or rented it out and as a result of such a civil transaction received income (including in a large or especially large amount), what he did does not entail criminal liability for illegal business o (Position of the Plenum of the Supreme Court of the Russian Federation dated November 18, 2004 N 23 “On judicial practice in cases of illegal entrepreneurship...”). In other words, if an individual rents out excess property, then it is not necessary to register as an individual entrepreneur.
Citizen not registered as an individual entrepreneur, pays only personal income tax on rent at a rate of 13% (if the rent payer has not withheld personal income tax from the income paid, as a tax agent, then the citizen will pay himself). He remains obligated to pay property tax for individuals (it is local and is paid once a year, no later than November 1 of the year following the year for which the tax was calculated; established by Law N2003-1-FZ "On taxes on property of individuals" and Moscow Law No. 47 “On rates of property tax for individuals”).
Citizen, registered individual entrepreneur by type of activity "renting out your own residential real estate" OKVED code 70.20.1., subject to the general taxation system, pays personal income tax on rent at a rate of 13%. The entrepreneur will need to submit a declaration to the tax authority in Form 4-NDFL within five days after the expiration of a month from the date of receipt of rental income (clause 7 of Article 227 of the Tax Code of the Russian Federation), and then make advance payments based on tax notices (clause 9, Article 227 of the Tax Code of the Russian Federation). Based on the results of the year - submit a declaration in form 3-NDFL no later than April 30 of the year following the previous year (Article 216, paragraph 1 of Article 229 of the Tax Code of the Russian Federation).
Under the general system, when renting out non-residential premises, an entrepreneur is required to pay VAT. An individual entrepreneur has the right to be exempt from fulfilling taxpayer obligations related to the calculation and payment of tax if, over the previous 3 consecutive calendar months, the amount of revenue from the provision of non-residential premises for temporary use, excluding VAT, did not exceed a total of 2 million rubles. (Clause 1 of Article 145 of the Tax Code of the Russian Federation). Operations involving the provision of residential premises for use are exempt from VAT (clause 10, clause 2, article 149 of the Tax Code of the Russian Federation).
The obligation to pay property tax for individuals remains.
All entrepreneurs are required to pay insurance contributions to state extra-budgetary funds “for themselves”: Pension Fund (for compulsory pension insurance), Compulsory Medical Insurance Fund (for compulsory health insurance); for hired workers (if any): Pension Fund + Social Insurance Fund + Compulsory Medical Insurance Fund (in accordance with Law No. 212-FZ “On Insurance Contributions...” .
In 2012, individual entrepreneurs are required to pay “for themselves” contributions of 17,208.25 rubles. (if the payer was born in 1966 and older: contribution to the Pension Fund - 14386.32 rubles, the entire amount is paid for the insurance part; if the payer was born in 1967 and younger, then contributions to the Pension Fund for the insurance part are 11066.40 rubles, for the funded part - 3319.92 rubles .; to the Federal Compulsory Medical Insurance Fund (FFOMS) - 2821.93 rubles; contributions to the Territorial Compulsory Medical Insurance Fund are not paid in 2012).
Citizen, registered individual entrepreneur by type of activity"renting out your own residential real estate" OKVED code 70.20.1., transferable on the simplified tax system, should imagine that the simplified tax system is used in 3 variants:
With the object of taxation “income”, the tax rate is 6% (clause 1 of article 346.20 of the Tax Code of the Russian Federation);
The simplified tax system with the object of taxation is “income minus expenses”. The laws of the constituent entities of the Russian Federation may establish rates from 5 to 15% depending on the categories of taxpayers; the amounts of paid insurance premiums (for example, contributions for “yourself” to the Pension Fund of the Russian Federation, the Compulsory Medical Insurance Fund) can be included in expenses (clause 7, clause 1, article 346.16 of the Tax Code of the Russian Federation);
Simplified tax system based on a patent - when transferring for temporary possession and (or) use of garages, own residential premises, as well as residential premises built on dacha land plots (clause 56, clause 2, article 346.25.1 of the Tax Code of the Russian Federation). The amount of the patent is fixed, calculated from the potential annual income established by the subject of the Russian Federation. Part of the patent can be reduced by the amount of insurance contributions to extra-budgetary funds paid by the entrepreneur both for himself and for his employees, taking into account the features set out in clause 10 of Article 346.25 .1 Tax Code of the Russian Federation.
The use of the simplified tax system exempts individual entrepreneurs from paying property tax for individuals on property used for rental (clause 3 of article 346.11 of the Tax Code of the Russian Federation). The deadline for submitting an application and documents confirming the actual use of property for exemption is not specified, so it turns out that tax authorities send a notice of payment faster than the individual entrepreneur submits the application and documents for exemption. Based on the application and documents submitted by the entrepreneur, the tax authorities issue a refund (offset) of the overpaid tax.
Restriction on the use of the simplified tax system - annual income from the rental of property should not exceed 60 million rubles per year.
The obligation to pay insurance contributions to state extra-budgetary funds for individual entrepreneurs on the simplified tax system for “himself” and for employees (if any) exists and does not depend on the applied taxation regime.
Good evening!
on question 1 and on part 2 of question 2 - in accordance with the letter of the Ministry of Finance of the Russian Federation dated November 17, 2009 N 03-04-05-01/808
In accordance with Article 2 of the Civil Code of the Russian Federation, activities must be carried out independently, at your own risk, and be aimed at systematically generating profit.
In the absence of the above signs, an individual has the right to enter into an agreement to lease property without registering as an individual entrepreneur.
on the second question - the previous lawyer answered in great detail. You need to consider all payments and the rental amount.
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Druzhkin Maxim
Lawyer, Moscow
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Hello! In the 2 lease cases under consideration, depending on the status of the lessor, it is necessary to take into account a number of factors affecting the obligations for calculating taxes. This is the percentage of tax itself, the obligation to pay it directly by the lessor or the tax agent of an individual - the lessor, and the opportunity to also use a reduction in the tax base for expenses when purchasing property. Also in this matter, you should pay attention to the payment of taxes upon the subsequent sale of rental property.
I would like to immediately point out that the previous answers contained the erroneous opinion that in this case there is no need to pay tax when renting out real estate; in this position, this tax on income from renting out property was mistakenly confused with property tax.
- In accordance with paragraph 1 of Art. 209 of the Civil Code of the Russian Federation, the owner has the right to own, use and dispose of his property.
According to Art. 608 of the Civil Code of the Russian Federation, the owner of the property has the right to lease it.
Based on paragraph 1 of Art. 23 of the Civil Code of the Russian Federation, a citizen has the right to engage in entrepreneurial activity without forming a legal entity from the moment of state registration as an individual entrepreneur.
The Federal Tax Service of Russia for Moscow in Letter dated March 30, 2007 N 28-10/28916 indicates that the following facts may indicate the presence of signs of entrepreneurial activity in a citizen’s actions:
Manufacture or acquisition of property for the purpose of subsequent profit from its use or sale;
Accounting for business transactions related to transactions;
The interconnectedness of all transactions made by a citizen in a certain period of time;
Stable connections with sellers, buyers, and other counterparties.
In addition, in accordance with the All-Russian Classifier of Types of Economic Activities OK 029-2001 (NACE Rev. 1), approved by Decree of the State Standard of Russia dated November 6, 2001 N 454-st, economic activity takes place when resources, equipment, labor, technology , raw materials, materials, energy (information resources) are combined into a production process aimed at producing products (providing services). Economic activity is characterized by production costs, the production process and the output of products (provision of services).
If these signs are present, an individual is required to register as an entrepreneur without forming a legal entity.
This position is confirmed by Letters of the Ministry of Finance of Russia dated January 14, 2005 N 03-05-01-05/3 and dated September 22, 2006 N 03-05-01-03/125, as well as the Letter of the Federal Tax Service of Russia for Moscow dated January 25, 2008 N 18-12/3/005988.
Thus, according to the regulatory authorities, if operations for leasing (renting) property or operations for buying and selling property are carried out in the presence of signs of economic and entrepreneurial activity, an individual is obliged to register with the tax authorities as an entrepreneur without forming a legal entity.
The Plenum of the Supreme Court of the Russian Federation in paragraph 2 of Resolution No. 23 dated November 18, 2004 indicated that in cases where a person not registered as an individual entrepreneur acquired residential premises or other real estate for personal needs or received it by inheritance or under a gift agreement, but due to the lack of need to use this property, he temporarily leased it or rented it out and as a result of such a civil transaction received income (including in a large or especially large amount), what he did does not entail liability for illegal entrepreneurship.
Thus, if an individual temporarily rents out non-residential premises, but his activities do not contain signs of entrepreneurial activity, the person is not required to register as an individual entrepreneur.
- According to paragraph 2 of Art. 209 of the Civil Code of the Russian Federation, the owner has the right, at his own discretion, to take any actions in relation to his property that do not contradict the law and other legal acts and do not violate the rights and interests protected by law of other persons, including alienating his property into the ownership of other persons, transferring to them, while remaining the owner, the right to own, use and dispose of property, pledge the property and encumber it in other ways, dispose of it in another way.
Taxation of income received by individuals is carried out in the manner prescribed by Chapter. 23 of the Tax Code of the Russian Federation.
In paragraph 1 of Art. 207 of the Tax Code of the Russian Federation states that personal income tax payers are individuals who are tax residents of the Russian Federation, as well as individuals receiving income from sources in Russia who are not tax residents of the Russian Federation.
According to paragraphs. 4 and 10 p. 1 art. 208 of the Tax Code of the Russian Federation, income from sources in the Russian Federation includes income received from leasing or other use of property located in Russia.
In accordance with paragraph 1 of Art. 226 of the Tax Code of the Russian Federation, Russian organizations, individual entrepreneurs, notaries engaged in private practice, lawyers who have established law offices, as well as separate divisions of foreign organizations in the Russian Federation, from which or as a result of relations with which the taxpayer received income, are required to calculate, withhold from the taxpayer and pay personal income tax amount.
The exception is income for which the calculation and payment of tax are carried out in accordance with Art. Art. 214.1, 214.3, 214.4, 227, 227.1 and 228 of the Tax Code of the Russian Federation.
Thus, an organization - a tenant of non-residential premises, making payments under a lease agreement to an individual - the lessor, who is not an individual entrepreneur, is obliged to calculate, withhold from the taxpayer and pay to the budget the amount of personal income tax on the rent amounts.
Based on the foregoing, an individual entrepreneur who pays rent to an individual for premises rented from him is recognized as a tax agent in relation to such income of the individual and, accordingly, must fulfill the obligations of calculating, withholding and transferring to the budget personal income tax in the manner prescribed Art. 226 of the Tax Code of the Russian Federation, as well as upon submission to the tax authority at the place of registration in accordance with clause 2 of Art. 230 of the Tax Code of the Russian Federation information on the income of an individual and the amounts of taxes accrued, withheld and transferred to the budget system of the Russian Federation. This position is confirmed by the letter of the Ministry of Finance of Russia dated July 20, 2012 N 03-04-05/3-889).
- entrepreneurial activity for the lease of apartments and non-residential premises for offices and shops of an individual entrepreneur applying a simplified taxation system, the type of economic activity of which, indicated in the Unified State Register of Individual Entrepreneurs, is the rental of their own real estate, is not subject to taxation with a single tax on imputed income . At the same time, income from activities related to the lease of apartments and non-residential premises for offices and shops is also not subject to taxation on personal income tax (clause 24 of Article 217 of the Code). (Letter of the Ministry of Finance of the Russian Federation dated December 5, 2011 N 03-11-11/310))
In accordance with Art. 346.20 of the Tax Code of the Russian Federation, in the case of a simplified taxation system (STS), if the object of taxation is income, the tax rate is established at the rate of 6 percent.
Taxpayers who apply the simplified taxation system and who have chosen income reduced by the amount of expenses as an object of taxation, when determining the tax base, take into account the expenses provided for in paragraph 1 of Art. 346.16 of the Tax Code of the Russian Federation, subject to their compliance with the criteria specified in paragraph 1 of Art. 252 of the Code.
Based on paragraphs. 1 clause 1 art. 346.16 of the Code, when determining the object of taxation, taxpayers have the right to take into account expenses for the acquisition, construction and production of fixed assets, as well as for the completion, additional equipment, reconstruction, modernization and technical re-equipment of fixed assets (taking into account the provisions of paragraphs 3 and 4 of Article 346.16 of the Tax Code) .
If an individual acquired ownership of a fixed asset (non-residential premises) before state registration as an individual entrepreneur, then he was not a taxpayer engaged in entrepreneurial activity, therefore, the costs of acquiring a fixed asset when an individual entrepreneur applies the simplified taxation system should not be taken into account.
At the same time, the costs of repairing the specified premises, carried out during the period of application of the simplified taxation system, can be taken into account when determining the tax base on the basis of paragraphs. 3 p. 1 art. 346.16 of the Code, and the costs of its maintenance in the form of utility bills - on the basis of paragraphs. 5 clause 1 of the said article and art. 254 Code.
At the same time, according to paragraph. 2 clause 17.1 art. 217 of the Tax Code of the Russian Federation, the provisions of this paragraph do not apply to income received by individuals from the sale of property directly used by individual entrepreneurs in business activities.
Thus, income received from the sale of non-residential premises, which were directly used in business activities, are subject to inclusion in the tax base for personal income tax. (Letter of the Ministry of Finance of Russia dated 06/09/2012 N 03-04-05/3-716)) .
Therefore, during the subsequent sale of property leased, it is necessary to take into account that if you do not register an individual entrepreneur and simply rent out non-residential premises, then when selling this property, which has been owned for more than 3 years, you do not need to pay personal income tax. If you register an individual entrepreneur, then when selling such property, its value should be included in the tax base.
At the same time, in accordance with Art. 41 of the Code, income is recognized as an economic benefit in monetary or in-kind form, taken into account if it is possible to assess it and to the extent that such benefit can be assessed, and determined in accordance with the chapters “Individual Income Tax” and “Organizational Income Tax” Code.
According to paragraph 1 of Art. 572 of the Civil Code of the Russian Federation, under a gift agreement, one party (the donor) gratuitously transfers or undertakes to transfer to the other party (the donee) an item of ownership or a property right (claim) to himself or to a third party, or releases or undertakes to release it from a property obligation to himself or to a third party.
Based on the above and taking into account the principle of determining income established in Art. 41 of the Code, when donating real estate, the donor does not have income (economic benefit) subject to personal income tax. (Letter of the Ministry of Finance of the Russian Federation dated November 2, 2011 N 03-04-05/3-837))
Taking into account the above, if you do not register an individual entrepreneur, then the lessor (individual entrepreneur or legal entity), being a tax agent, will calculate your personal income tax - 13% of the income received from the transaction and pay it. Also, after 3 years from the date of acquisition of ownership, it will be possible to sell the property without paying personal income tax on the sale amount.
If you register an individual entrepreneur, then according to the type of activity “renting out your own residential real estate”, OKVED code 70.20.1., an individual entrepreneur according to the simplified tax system will have the object of taxation “income”, at a tax rate of 6% (clause 1 of article 346.20 of the Tax Code of the Russian Federation); with the object of taxation “income minus expenses” - 15%, while the tax base can be reduced by the cost of fixed assets - acquired property.
I also want to offer another option, which may be less tax-intensive.
In accordance with paragraph 1 of Art. 1005 of the Civil Code of the Russian Federation, under an agency agreement, one party (agent) undertakes, for a fee, to perform legal and other actions on behalf of the other party (principal) on its own behalf, but at the expense of the principal or on behalf and at the expense of the principal.
Under a transaction made by an agent with a third party on his own behalf and at the expense of the principal, the agent acquires rights and becomes obligated, even if the principal was named in the transaction or entered into direct relations with the third party for the execution of the transaction.
Article 1011 of the Civil Code of the Russian Federation establishes that if an agent acts on his own behalf, but at the expense of the principal, then the rules provided for in Ch. 51 “Commission” of the Civil Code of the Russian Federation, if these rules do not contradict the provisions of this chapter of the Civil Code of the Russian Federation or the essence of the agency agreement.
Thus, the subject of the agency agreement is any relationship between the agent and third parties in the interests of the principal.
According to paragraphs. 9 clause 1 art. 251 of the Code, when determining the tax base, income in the form of property (including cash) received by a commission agent, agent and (or) other attorney in connection with the fulfillment of obligations under a commission agreement, agency agreement or other similar agreement, as well as for reimbursement of expenses, is not taken into account made by the commission agent, agent and (or) other attorney for the principal, principal and (or) other principal, if such costs are not subject to inclusion in the expenses of the commission agent, agent and (or) other attorney in accordance with the terms of the concluded agreements. The indicated income does not include commission, agency or other similar remuneration.
Taking into account the above, subject to the above conditions for a transaction with third parties for an individual entrepreneur - agent applying the simplified taxation system, only agency fees are taken into account as part of income when determining the object of taxation.
The only thing that needs to be taken into account in this case is that, according to paragraph 5 of Art. 346.11 of the Tax Code, individual entrepreneurs using the simplified taxation system are not exempt from performing the duties of tax agents provided for by the Tax Code.
In accordance with paragraphs 1 and 2 of Art. 226 of the Code, individual entrepreneurs who are the source of payment of income to taxpayers are recognized as tax agents in relation to taxpayers and are obliged to calculate, withhold and transfer to the budget the amount of personal income tax on such income of taxpayers.
So, look at what pros and cons to take. When registering an individual entrepreneur, do not forget about the obligation to independently pay social taxes, to the Social Insurance Fund, pension fund, and the Compulsory Medical Insurance Fund.
Have a nice day!
1. In what cases is it permissible to do this on behalf of an Individual, and in what cases only on behalf of an individual entrepreneur? What are the tax risks under these two options? Can the option of surrendering on behalf of an individual be considered illegal business under the Criminal Code of the Russian Federation?
The presence of signs of entrepreneurial activity in a citizen’s actions may be evidenced, in particular, by the following facts:
- production or acquisition of property for the purpose of subsequent profit from its use or sale;
- economic accounting of operations related to transactions;
- the interconnectedness of all transactions made by a citizen in a certain period of time;
- stable relationships with sellers, buyers, and other counterparties (see letters of the Ministry of Finance of the Russian Federation dated November 17, 2009 N 03-04-05-01/808, dated 09.22.2006 N 03-05-01-03/125, dated January 14, 2005 N 03-05-01-05/3, Federal Tax Service of the Russian Federation for Moscow dated 01/25/2008 N 18-12/3/005988, dated 03/30/2007 N 28-10/28916).
Since the above-mentioned signs will be present in the actions of a citizen, an individual in this case is obliged to register as an entrepreneur without forming a legal entity.
Otherwise, the citizen will be held administratively liable for carrying out business activities without state registration under Part 1 of Art. 14.1 Code of Administrative Offenses of the Russian Federation and criminal under Art. 198 of the Criminal Code of the Russian Federation in case of tax evasion (if the amount of taxes and (or) fees has not been paid, amounting to more than six hundred thousand rubles for a period within three financial years in a row, provided that the share of unpaid taxes and (or) fees exceeds 10 percent of the due payment of taxes and (or) fees, or exceeding one million eight hundred thousand rubles). If, in the situation under consideration, the property was initially acquired to generate income from renting it out, the citizen may be prosecuted under Art. 171 of the Criminal Code of the Russian Federation (when receiving income in an amount exceeding one million five hundred thousand rubles).
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2. Which option for extracting income from real estate is more profitable in a financial sense: compare the option of an individual entrepreneur under different tax regimes and an individual (if permissible), under alternative assumptions that the initial investment (purchase/reconstruction) was made from an individual entrepreneur or from an individual?
I am considering the option only for individual entrepreneurs.
An individual entrepreneur can apply OSN, simplified tax system: “income”, “income minus expenses”, patent, UTII
UTII: there is none in Moscow
the most unprofitable, since you will need to pay property tax, income tax, VAT, etc.
Simplified tax system: “income”, “income minus expenses”, patent:
The use of a simplified tax system by organizations provides for their exemption from the obligation to pay income tax, property tax of organizations, value added tax (except in some cases) (clause 2 of Article 346.11 of the Tax Code of the Russian Federation).
I’ll start with a patent: it can only be used when transferring for temporary possession and (or) use of garages, one’s own residential premises, as well as residential premises built on dacha land plots. Accordingly, it does not apply when leasing commercial real estate.
“income” or “income reduced by the amount of expenses”: it is more expedient to use them. Which tax object to choose depends on the percentage of income and expenses.
If the expected expenses are less than 66.66% of the total expected income, then it is better to simply select “income” and pay a single tax of 6% on the amount of income.
Otherwise, it is better to choose “income reduced by expenses” and pay 15% of the difference.
In some cases, it is more advisable to choose the second, since it is often possible to “cover” income with expenses; the list of them is limited in Art. 346.16 of the Tax Code of the Russian Federation, and losses of previous years (clause 7 of Article 346.18 of the Tax Code of the Russian Federation), such expenses can include, for example, expenses for the acquisition of fixed assets, interest on credits/loans.
In this regard, it is better to register as an individual entrepreneur and then purchase real estate, then the costs of its acquisition will immediately appear in accounting.
In reality, if you are not going to register the agreement with the Registration Chamber, you can submit it as an individual.
In this case, it will be possible to identify the fact of non-payment of tax only through a complaint from a well-wisher.
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An individual entrepreneur leases non-residential premises - the taxation of this procedure depends on the status of the tenant and the tax regime of the entrepreneur. Let’s take a closer look at the key nuances of calculating taxes for individual entrepreneurs for themselves (and sometimes not only) as part of real estate rental transactions.
What are the difficulties of taxation when leasing real estate to individual entrepreneurs?
The procedure for leasing non-residential real estate to individual entrepreneurs is characterized by a large number of nuances from a tax point of view. So, in order not to violate tax laws, individual entrepreneurs need to know the answers to the following questions:
- In what capacity should he pay taxes on the rental of premises - an individual entrepreneur or an ordinary citizen, taking into account the fact that non-residential real estate is registered in his name as an individual (or, alternatively, purchased by him even before registration as an individual entrepreneur)?
Depending on the status of the taxpayer, the right to apply one or another tax regime is established - general, special, as well as the right to include expenses in the calculation of the tax base.
- Does he, as an individual, need to pay tax on property that is rented out (and thus used in business activities)?
In general, property tax is not paid on real estate used in the business of an individual entrepreneur. But there are many exceptions to this rule.
- What taxes does an individual entrepreneur need to pay if he rents out real estate to a business entity - another individual entrepreneur or LLC?
Here everything depends mainly on the specifics of the taxation system used - OSN or one of the special regimes.
- What taxes does an individual entrepreneur need to pay if he rents out non-residential real estate to an individual (not registered as an individual entrepreneur)?
The main problem here is the following: in relation to individuals, an individual entrepreneur as an economic entity can act as a tax agent and bear the statutory responsibilities for calculating and paying the individual’s personal income tax (as well as for reporting).
Let us now try to consistently give answers to these questions related to the taxation of real estate rental for individual entrepreneurs.
Renting real estate to individual entrepreneurs: what tax regime to work with?
Even if the property was acquired by an individual with the status of an individual entrepreneur (for example, under a commercial sales agreement with another business entity), the certificate of ownership will contain the personal data of the owner without any adjustments for his status as an entrepreneur. Any commercial transactions with real estate (sale or lease), from a tax point of view, will by default be considered as carried out by an individual, not an individual entrepreneur. That is, the landlord will by default have to pay personal income tax on rental proceeds at a rate of 13%.
At the same time, an individual entrepreneur has the right to notify the Federal Tax Service that he is using the property in business, and on this basis pay taxes on transactions with this property in accordance with the applicable taxation system, for example, the simplified tax system or UTII (clause 3 of article 346.11, clause 4 Article 346.26 of the Tax Code of the Russian Federation).
The notification is drawn up in free form. It is advisable to reflect in it the details of the agreement on the lease of the property, acts of acceptance and transfer of premises - this will be evidence of the fact that the real estate is used in business activities (letter of the Ministry of Finance of Russia dated 03/05/2012 No. 03-11-11/67).
If the individual entrepreneur works for the OSN, then it also makes sense to send the specified notification to the Federal Tax Service. An entrepreneur under the general tax regime, like an ordinary individual, pays 13% of revenue, but an individual entrepreneur as an economic entity can include expenses in the calculation of the tax base, while an ordinary individual cannot. Expenses in the case of rent can be very significant (for example, related to the payment of utilities, if they are not included in the contract price).
Moreover, an individual entrepreneur on an OSN will pay VAT on rental income, but an ordinary individual will not.
Real estate in business activity: should I pay property tax?
Individual entrepreneurs on OSN pay property tax on a general basis. At the same time, it may be more profitable for him not to include the object of taxation in the property used in business activities, since tax benefits do not apply to such property (clause 2 of Article 407 of the Tax Code of the Russian Federation).
Individual entrepreneurs using the simplified tax system and UTII have the right not to pay tax on real estate used in business activities, unless it relates to the objects listed in subparagraph. 1 and 2 paragraphs 1 art. 378.2 Tax Code of the Russian Federation. Such objects include:
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- administrative and business buildings, shopping and entertainment centers and any premises inside these facilities;
- objects within which are located (or can be located in accordance with the purpose reflected in the technical accounting documents) enterprise offices, shops, restaurants, cafes, consumer service points.
A specific list of such objects is approved for each region by a separate government decree.
The fact of use or non-use of the objects listed in Art. 378.2 of the Tax Code of the Russian Federation, in entrepreneurial activity it does not matter: the individual entrepreneur pays property tax on them in any case.
One way or another, we will agree that the individual entrepreneur still uses non-residential real estate for commercial purposes, namely for rental purposes. In practice, the tenants of the property can be:
- Individual entrepreneur and legal entity;
- individuals not registered as individual entrepreneurs.
In each case, individual entrepreneur taxation has its own peculiarities.
Tenant - business entity: tax consequences of individual entrepreneurs in a special regime
When renting out real estate to another business entity, an individual entrepreneur will have to, if he operates under a special regime:
- On the simplified tax system:
- calculate and account for income from receiving rent (with a simplified tax system of 15% - expenses, if any) in the accounting book;
- calculate and pay taxes in a timely manner;
- report taxes in your return.
- On UTII:
- keep in a convenient way (to which the Federal Tax Service has no objections if there has already been an inspection, or by all indications there should not be if there has not been an inspection yet) accounting for physical indicators that affect the tax base (letter of the Ministry of Finance of Russia dated 08.08.2012 No. 03-11 -11/233);
- calculate, pay and declare tax.
In the case of renting real estate under UTII, physical indicators for permitted types of renting non-residential real estate may be different - you need to look at their list under clause 3 of Art. 346.29 Tax Code of the Russian Federation. And if there are several objects, then separate accounting may be required.
As we already know, there is no need to pay property tax under a special regime (unless there are exceptions under Article 378.2 of the Tax Code of the Russian Federation and the Federal Tax Service is notified of the use of real estate in business).
Tenant - business entity: tax consequences of individual entrepreneurs on the special tax base
If an individual entrepreneur operates on an operating system, he will have to:
- Keep records using the OSN accounting book (approved by order of the Ministry of Finance of Russia No. 86n dated August 13, 2002, Ministry of Taxes of Russia No. BG-3-04/430), calculate and pay your personal income tax, and declare it within the prescribed period.
- Pay VAT on revenue, which is represented by rent, issue invoices (prepaid, advance, if necessary, corrective or adjusting), enter information about them in the journal and accounting books.
You can learn more about the specifics of accounting for invoices by a VAT payer in the articles:
- “Logbook of received and issued invoices”;
- “Reflection of an adjustment invoice in the purchase book.”
If an individual entrepreneur and his counterparty have entered into a gratuitous rental agreement for one purpose or another, VAT must nevertheless be paid, and at the market rental price (information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated December 22, 2005 No. 98).
In this case, the counterparty accepts the estimated rental cost as part of non-operating income (clause 8 of Article 250 of the Tax Code of the Russian Federation).
The tenant is an individual (not an individual entrepreneur): tax consequences
If the tenant is an individual who is not registered as an individual entrepreneur, then the entrepreneur, when leasing the property, will have to, as a taxpayer, generally carry out the same actions that are typical for legal relations with another business entity. He pays the same taxes on the rental of non-residential premises. However, entrepreneurs should keep in mind that:
- When renting real estate free of charge by an individual, an individual entrepreneur is required to calculate (by analogy with the scenario for counterparties-legal entities and individual entrepreneurs described above) the personal income tax base based on the market rental amount.
The fact is that this amount is considered natural income of an individual. The individual entrepreneur must accrue personal income tax on it, pay it in the status of a tax agent (letter of the Ministry of Finance of Russia dated July 5, 2013 No. 03-04-06/25983), and then report to the Federal Tax Service using forms 2-NDFL and 6-NDFL.
- The VAT journal and books will obviously only take into account outgoing invoices.
Moreover, if an individual paid the rent in cash, and the lessor issued a strict reporting form confirming payment, then an invoice is not needed. In other cases, the account must be drawn up and registered in the accounting journal and sales book (letter of the Ministry of Finance of Russia dated November 23, 2012 No. 03-07-09/153).
An individual entrepreneur can rent out the real estate he owns as an individual, paying regular personal income tax, or as an economic entity under the special tax regime or special regime, if he informs the Federal Tax Service about the use of the real estate in business. In the second case, it is possible to apply more favorable conditions for paying tax on revenue.
