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.”
Moscow, October 23, 2018. - One of the legal ways to rent out an apartment is to purchase a patent after an individual receives the status of an individual entrepreneur (IP): the tax rate in this case is 6% versus 13% when paying personal income tax. 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.”
Reasons for the unpopularity of PSN
Kirill Kokorin: “The presence of a patent is not related to the size and regularity of income from renting out an apartment: the landlord buys this permit for a certain period (from 1 to 12 months within a calendar year), and even if the object has been idle all this time - for example , it was not possible to pass it, the patent is not renewed and its cost is not refunded.
In addition, regardless of whether income is received from renting out an apartment or not, the individual entrepreneur makes annual mandatory payments to the Pension Fund - in 2018 this is 5,840 rubles, as well as to the Federal Medical Insurance Fund - in 2018 this is 26,545 rubles . The total amount of mandatory payments is 32,385 rubles. For an individual entrepreneur who has purchased a patent, the possibility of reducing the amount of tax on the amount of insurance premiums is not provided.
The expenses of landlords who are individual entrepreneurs include the cost of a patent and mandatory payments. Individuals pay only personal income tax. Let's look at an example. Apartment in the South-Western Administrative District with an area of 45 sq. m is rented for 30,000 rubles per month, the annual rental income is 360,000 rubles. The cost of renting out this apartment for an individual (personal income tax) with such income will be 46,800 rubles per year (360,000 X 13%); for individual entrepreneurs – 50,385 rubles (18,000 rubles for a patent + 32,385 rubles as mandatory payments).
To determine the feasibility of purchasing a patent, each landlord should carry out a competent calculation of all possible options.”
Seller of an apartment with individual entrepreneur status: features of the situation
Kirill Kokorin: “The owner of a living space who has used it at least once for business purposes, having the status of an individual entrepreneur, will not be able to sell this apartment as an individual, only as an individual entrepreneur. This means that the seller is deprived of all benefits and deductions that are due to an individual. If the owner officially liquidates the individual entrepreneur, the situation during the sale will only become more complicated. The seller of an apartment that was previously used for business purposes who has lost the status of an individual entrepreneur is obliged to pay personal income tax on the entire amount received from the sale. The period of ownership of the apartment does not matter. This is the stable position of the Ministry of Finance.
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.
According to the standard terms of a lease agreement for residential (non-residential) premises, the lessor undertakes to provide the tenant with premises for a fee for temporary possession and use or for temporary use.
In accordance with Art. 608 of the Civil Code of the Russian Federation, the right to lease property (including non-residential premises) belongs to its owner. Moreover, the law does not indicate the need for the landlord - an individual to register as an individual entrepreneur in order to transfer the premises for rent. Accordingly, an individual may be a lessor of property owned by him, without being an individual entrepreneur. However, it should be noted that the situation presented above will comply with the law only if the citizen’s activity in leasing property is not entrepreneurial.
According to paragraph 1 of Art. 2 of the Civil Code of the Russian Federation, entrepreneurial activity is an 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 a person registered as an entrepreneur in the manner prescribed by law. Its signs are reflected in letters of the Ministry of Finance of the Russian Federation dated November 7, 2006 No. 03-01-11/4-82 and dated September 22, 2006 No. 03-05-01-03/125:
production or acquisition of property for the purpose of subsequent profit from its use or sale;
accounting of business transactions 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.
This legal position is adhered to and the Judicial Collegium for Administrative Cases of the Supreme Court of the Russian Federation. IN in its definition No. 16-КГ18-17 The Supreme Court of the Russian Federation confirmed that the owner of non-residential premises is obliged to pay VAT if he is engaged in entrepreneurial activity by renting them out without registering as an individual entrepreneur.
Based on the circumstances of the case, Supreme Court of the Russian Federation pointed out that the objective criterion for qualifying the plaintiff’s activities as entrepreneurial is the purpose of non-residential premises, as well as the type of permitted use of the land plots on which they are located.
In the current situation and an individual, being the owner of real estate (trade pavilions), rented them out. Based on the results of the audit, the tax authority, expressing the opinion that by renting out the above premises, the owner was engaged in entrepreneurial activity, charged him additional value added tax, penalties and a fine.
The owner of the premises went to court because he believed that, as the owner, he had the right to lease non-residential premises on the basis of civil transactions. This does not apply to entrepreneurial activity, and he paid personal income tax on the income received.
According to the court of first instance, the mere fact that the owner of the premises has made compensated transactions is not sufficient to recognize him as an entrepreneur, and leasing his own property is the implementation of his legal right. However, the appellate court overturned this decision, recognizing the inspection's conclusions as justified. The plaintiff rented out non-residential premises belonging to him to a legal entity for carrying out commercial activities. Consequently, the citizen had to pay value added tax.
The Judicial Collegium for Administrative Cases of the Supreme Court of the Russian Federation agreed with the appellate instance and recognized the inspection findings that an individual carried out entrepreneurial activities as justified, since the property belonging to him was intended for use as retail premises and is located on land plots that are also intended for trading activities.
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 simplified form 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.
