The right of “simplers” to reduced insurance premium rates
Organizations and individual entrepreneurs using the simplified tax system can apply reduced tariffs if they are engaged in certain types of activities. To do this, two basic conditions must be met:
- income from this type of activity constitutes at least 70 percent of the total amount of all receipts for the reporting period (that is, from the beginning of the year);
- the total amount of income does not exceed 79,000,000 rubles.
This is stated in subparagraph 5 of paragraph 1, subparagraph 3 of paragraph 2, paragraphs 3 and 6 of Article 427 of the Tax Code of the Russian Federation.
Conditions
- At least 70% according to preferential OKVED
. The share of the company’s activities in this type must be at least 70%, but how this data will be checked is not specified in the law. - When switching to OKVED2, the benefit is not lost
.
Whether the activities of an organization or individual entrepreneur on the simplified tax system are classified as preferential activities is determined by the main OKVED code. However, when switching to OKVED2, the right to the benefit should not be lost (letter of the Ministry of Finance dated October 25, 2017 No. GD-4-11/21578). - Income for the year up to 79 million
. To apply these tariffs, from January 1, 2021, there is a limit - income up to 79 million rubles / year (subclause 3, clause 2, article 427 of the Tax Code of the Russian Federation). If this limit is exceeded, all insurance premiums paid will need to be recalculated from the beginning of the year and paid at a rate of 30%. - If the income is 0 rubles, then the benefit cannot be applied
. If there is a complete lack of income, the reduced tariff cannot be applied (letter of the Ministry of Labor dated July 2, 2014 No. 17-4/B-295), but you can start applying it from the middle of the year if you have a share of such income of over 70% - The benefit can begin to be applied from the middle of the year
. If an organization did not have sufficient preferential income at the beginning of the year (70%), and then it appeared, then it has the right to recalculate contributions at a preferential rate (letter of the Ministry of Finance dated October 13, 2017 No. 03-15-07/66964)
(letter of the Federal Tax Service of Russia dated October 25, 2021 No. GD-4-11/21611).
Since 2021, new OKVED will be in force
On January 1, 2021, Rosstandart introduced OKVED2 instead of OKVED1. However, despite the transitional keys, not all old activity codes coincided with the new ones. Because of this, starting from 2021, not all organizations could apply reduced insurance premium rates.
The Russian Ministry of Finance, in letter No. 03-15-07/66964 of the Russian Ministry of Finance dated October 13, 2017, allowed the continued application of reduced tariffs to those who enjoyed the benefit until 2021. Even the types of activities OKVED1 and OKVED2 do not coincide. However, this state of affairs was rather strange. After all, benefits must be applied on the basis of regulatory legal acts, and not with the permission of officials.
The essence of the problem
Subclause 5 of clause 1 of Article 427 of the Tax Code contains a list of types of activities, carrying out which, payers of the simplified tax system (subject to a number of conditions) can apply reduced rates of insurance premiums.
Unfortunately, this list was compiled based on the old OKVED1 classifier. Meanwhile, in 2021, the new OKVED2 came into force, in which the classification differs from the previous one.
In particular, the head of the Chamber of Commerce and Industry of the Russian Federation, Sergei Katyrin, expressed his indignation at the discrepancy between the Tax Code and OKVED2.
He stated that the types of activities specified in the Tax Code do not coincide with OKVED2 codes in more than forty positions.
“Instead of the wording in the Tax Code “chemical production”, “production of chemical substances” appeared in the classifier, instead of “textile and clothing production” - only “production of textile products”, etc.,” noted the President of the Russian Chamber of Commerce and Industry.
Payers of the simplified tax system became alarmed and flooded the Ministry of Finance with letters asking them to clarify whether they have the right to reduced contributions if their type of activity is not directly stated in paragraph 5 of paragraph 1 of Article 427 of the Tax Code.
