Payment of 1% on income above 300,000 for individual entrepreneurs - how and when to pay

All individual entrepreneurs pay taxes and fees provided for by law. Tax revenues go to the budget, contributions go to pension and health insurance funds. Such contributions are called insurance contributions; their payment allows you to receive pension payments in old age, as well as use free medical services under the policy. In addition, if an individual entrepreneur’s income is over 300,000, 1% is paid additionally.

Grounds for paying insurance premiums

The use of PSN obliges individual entrepreneurs to pay insurance contributions to extra-budgetary funds (from 2021 - to the Federal Tax Service) for themselves and employees, the maximum number of whom under a patent is 15 people.

When determining the basic profitability, the norms of regional legislation regarding the type of activity limited by a patent are taken into account.

How to calculate the value of a patent

The cost of a patent is a fixed amount, which may be beneficial if the income is significant, but not very profitable if the income is low. The tax rate on the patent taxation system is 6%, and the tax base from which the value of a patent is calculated is the potential annual income (PAP). Such income is established by regional laws.

When calculating the cost of a patent, in some cases, indicators such as the number of employees, the area of ​​the sales or service area, the number of vehicles, and rental area are taken into account. You can find out the cost of a patent using our calculator, or you can independently find regional laws on the patent tax system on the Internet. These laws establish for their territories the potential annual income for the types of activities permitted by the patent.

The amount of insurance premiums paid for an entrepreneur

In relation to individual entrepreneurs, the minimum amount of contribution deductions established at the legislative level is applied, depending on the minimum wage. The amount of annual contributions may remain at the level of the previous year or be increased due to an increase in the minimum wage.

Entrepreneurs pay contributions using rates: (click to expand)

• Contributions to compulsory pension insurance in the amount of 26% of the total amount without distribution to the insurance and savings parts, regardless of the person’s age.
• Compulsory medical insurance contribution in the amount of 5.1% of the total amount.
• If the basic profitability threshold of 300,000 rubles is exceeded, an additional amount of 1% of the amount exceeding the limit is paid for pension insurance.

Social insurance contributions are paid by entrepreneurs voluntarily. As a result of insurance, individual entrepreneurs have the opportunity to receive disability benefits. The entrepreneur must fully pay the premium for the year preceding the occurrence of the insured event. Insurance premiums paid by an individual entrepreneur as an employee are not taken into account. The payment amount is set at 2.9% of the annual minimum wage (

Accounting and reporting

Patent payers do not file any reporting of taxes paid in connection with the application of this regime. Nevertheless, they must maintain the Income Book of an individual entrepreneur using PSN.

The tax period for PSN is generally recognized as a year. There are features:

• if a patent is issued for several months, then the tax period is the period for which it was issued;
• If the activity is terminated before the expiration of the patent, the tax period is the period from the beginning of the patent until the end of the activity.

Individual entrepreneur contributions in case of income exceeding 300 thousand rubles

Fixed amounts of insurance premiums for an individual entrepreneur's own insurance are paid when the entrepreneur receives a basic income within 300 thousand rubles. If the established limit is exceeded, an obligation arises to pay 1% of the amount of basic profitability for the type of activity that the entrepreneur incurred in excess of the limit. When combining modes, revenue and basic profitability are summed up for the individual entrepreneur as a whole.

Entrepreneurs with a patent, regardless of the amount of revenue during the validity period of the PSN, must calculate the amount of contributions based on the potential income of conducting a specific type of activity. The value is set by regional authorities.

Example of calculating insurance premiums

An individual entrepreneur on a patent has a basic profitability by type of activity for the reporting year 2021 in the amount of 455,000 rubles. The entrepreneur is obliged to pay contributions for his own insurance.

The individual entrepreneur determined the amount of contributions: (click to expand)

1. For OPS within a fixed payment of 23,400 rubles.
2. Compulsory medical insurance costs 4,590 rubles.
3. On OPS from the amount of excess of the base profitability over the limit: B = (455,000 – 300,000) x 1% = 1,550 rubles.

From the excess amounts, contributions are transferred only to compulsory health insurance; the amount of deductions for health insurance remains unchanged.

When paying for compulsory medical insurance, instructions indicate KBK 18210202140061110160, for compulsory medical insurance - 18210202103081013160.

Patent taxation system: permitted types of activities

The list of activities for which a patent can be obtained is specified in Article 346.43 of the Tax Code of the Russian Federation. However, since 2021, this list has changed from mandatory to recommended, so you need to focus on the laws of the constituent entities of the Russian Federation, which indicate patent areas of business for a specific territory. And although many regional laws completely duplicate the list of Article 346.43 of the Tax Code of the Russian Federation, there may be exceptions.

These are mainly various types of services to the population, but there are also production areas. For example, the production of carpets and carpet products, felted shoes, pottery, cooper's ware, dairy and bakery products. You can find out about specific types of activities for which patents are issued from your local Federal Tax Service.

If you need help selecting OKVED codes corresponding to the listed types of activities in 2021, we recommend using the free selection service.

Free selection of OKVED

Payment of insurance premiums if the individual entrepreneur has employees

Individual entrepreneurs acting as employers have the right to apply reduced rates when paying insurance premiums for employees. Due to the possibility of combining tax regimes, reduced tariffs apply only to the income of workers engaged in activities covered by the patent (unless another regime has reduced rates). The benefit is provided only for the income of specialists participating in activities limited by a patent. Entrepreneurs pay:

• Contribution to pension insurance in the amount of 20% of the employees’ earnings. Starting from 2021, contributions to compulsory pension insurance are transferred to the Federal Tax Service.
• The insurance amount in the Social Insurance Fund for the prevention of NS and PP in the amount of 0.2% to 8% of the employee’s income, depending on the type of activity.

Individual entrepreneurs do not make deductions for health insurance against illnesses and in connection with pregnancy. The income of employees not engaged in patent activities is subject to insurance contributions in accordance with other types of activities or the taxation system. For example, when providing household services, the right to a reduced tariff does not arise for an administrator who is not directly involved in the activity (

What is the essence of the patent tax system

PSN can hardly be called a full-fledged taxation system, because it does not have a complex accounting and reporting procedure. The tax return for the PSN is not submitted, and the tax is calculated immediately when paying for the patent. The essence of this preferential tax regime is to obtain a special document - a patent , which gives the right to carry out certain activities . This can be very convenient if you want to try out a small business for a short time in order to find out consumer demand and prospects for its development in the selected region.

Deadlines established for payment of contributions

Individual entrepreneurs who do not have employees must make personal insurance contributions by the end of the year. If there is a basic income of more than 300,000 rubles, an additional payment of 1% of the excess amount is made until April 1 of the year following the reporting period. The amount of income is determined for all types of activities.

If an incomplete billing period occurs, art. 430 of the Tax Code of the Russian Federation defines the procedure for paying insurance premiums.

The deadline for payment of insurance premiums calculated on the income of individual entrepreneurs' employees is set no later than the 15th day of the month following the billing month. Starting from 2021, the amounts are transferred to the account of the Federal Tax Service of the territorial body of the Federal Tax Service. Reporting on contributions from the specified period is submitted not to the funds, but to the Federal Tax Service.

How to switch to a patent tax system

The transition to a patent taxation system is of a declarative or permissive nature. Obtaining a patent may be refused on the grounds listed in paragraph 4 of Art. 346.45 Tax Code of the Russian Federation:

• The application for a patent indicates the type of activity in respect of which the patent tax system does not apply;
• The patent validity period indicated in the application does not comply with the requirements of the Tax Code of the Russian Federation. A patent is issued within one calendar year. It is impossible to specify, for example, such a period - from March 1, 2021 to March 2022.
• If this year an entrepreneur has already worked for a PSN, but lost the right to a patent (due to exceeding the income limit or the number of employees) or voluntarily stopped working on a patent before its expiration, then he can apply for a patent again only from the new year .
• If there is arrears in payment for patents already received.
• Blank required fields in a patent application.

There are no other grounds for refusing to issue a patent, therefore, after eliminating these shortcomings, the application can be submitted to the Federal Tax Service again. An application for a patent, in general, must be submitted to the tax office at the place where the patent is valid no later than 10 working days before the entrepreneur begins to apply the patent tax system.

Since 2014, an application for a patent can be submitted simultaneously when submitting documents for registration of an individual entrepreneur, but only if the place of registration of the individual entrepreneur and the place of validity of the patent coincide. In this case, the 10-day period is naturally not respected. Within five working days from the date of receipt of such an application, the Federal Tax Service is obliged to issue the entrepreneur a patent or a notice of refusal to issue it, indicating the reasons.

Contributions when combining modes

Entrepreneurs are given the opportunity to combine special regimes and a patent. The most common option is the use of simplified taxation system (STS) and PSN in accounting. To combine the modes, the entrepreneur will need to meet the following conditions:

• Keep separate records of income, expenses and number of employees.
• Observe the number limit. If the total number of employees is no more than 100 people, the number of persons involved in the patent should not exceed 15 people.
• Entrepreneurs using PSN do not have the right to reduce the value of the patent by the amount of calculated insurance premiums, as in cases of applying other special regimes.
• When combining a patent with the simplified tax system and the absence of employees, the entire amount of insurance premiums of the individual entrepreneur is used to reduce the single tax.
• If there are employees, the amount of the single tax can be partially reduced only by contributions of individual entrepreneurs and employees within the framework of the simplified tax system.

Tariff rates for individual entrepreneurs on a patent when combining modes are regulated by Ch. 26.5 Tax Code of the Russian Federation. To record indicators, entrepreneurs are required to keep accounting books for various types of activities.

Patent territory

Until 2015, the region for the patent taxation system was a subject of the Russian Federation - a republic, territory or region. It can be assumed that the income of an entrepreneur on PSN, providing services in a regional or regional center, should be greater than the income of an entrepreneur in a district center or village of the same region. The cost of the patent was the same for them, but it was valid throughout the entire territory of the region.

Law No. 244-FZ of July 21, 2014 amended Art. 346.43 and 346.45 of the Tax Code of the Russian Federation, according to which, since 2015, the region for the patent taxation system is a municipal entity, except for patents for road transportation and distribution (distribution) retail trade.

On the one hand, thanks to this change, the calculation of the cost of a patent has become more fair - more expensive in regional centers and lower in sparsely populated areas. But on the other hand, the validity of the patent is now limited to the territory of only this municipality.

Payment of insurance premiums

Individual entrepreneurs have a special status, being at the same time an individual and a commercial structure. Payment of insurance premiums can be made not only from accounts registered for an individual entrepreneur, but also from the person’s personal accounts. The main requirement for payment is the exact execution of the details. Common payment methods include transactions using Sberbank-online or the website nalog.ru.

Appendix 8 to Section 1 for persons on a patent

Summary

The general trend of the domestic tax system is absolutely obvious: it is in no way aimed at stimulating at least some development of entrepreneurial activity. Its only goal is to extract as much money as possible from the private sector into the treasury. And the inconvenience of doing business here doesn’t “catch” anyone at all.

In fact, it is quite surprising: when determining what taxes an individual entrepreneur needs to pay on a patent in 2021, the responsible leaders in the Government looked at the fact that the Russian Federation budget, as a whole, is in surplus? Or did they proceed from the thesis that it is in surplus because the treasury is receiving money from business? Well, not from micro-merchants...

Rules for filing a tax return on a patent

If you don’t pay taxes as an individual entrepreneur, what will happen and what fines will you face?

Those entrepreneurs who use the patent system work with the tax authorities in the most simplified form. Order of the Ministry of Finance dated October 22, 2012 No. 135n approves the procedure and form for maintaining an income book, which entrepreneurs using the patent system are required to maintain.

Thus, on the basis of paragraph 2 of Art. 6 of Law 402-FZ, an entrepreneur on a PSN does not have to keep accounting records.

A declaration on PSN is not provided. This is fixed in Article 346.52. Since the entrepreneur is exempt from accounting, he does not provide financial statements. As a result, it turns out that an entrepreneur applying a patent is freed to the maximum from interaction with regulatory authorities. Contacting the tax office is only necessary when you need to obtain a patent or stop using this regime.

Requirements for submitting a declaration under PSN

Penalty for late payment

If the patent is not paid on time, then a penalty will be charged for each day of late payment. They are equal to 1/300 of the Central Bank refinancing rate of the unpaid amount. A fine for late payment is not imposed on an individual entrepreneur. Only penalties are paid.

A fine can be imposed in two cases:

• the tax has not been paid at all;
• The tax amount is greatly underestimated.

Article 122 of the Tax Code establishes a fine equal to 30% of the unpaid amount to the budget.

Attention! This amount is established in the event that the authorities do not detect any violations. If signs of violations are detected based on Articles 129.3 and 129.5, the fines will be much higher.