How to reduce the “imputed” tax on contributions - basic rules

An individual entrepreneur using UTII has the opportunity to reduce the amount of UTII tax calculated for payment. That is, it is the amount obtained by calculation that should be reduced, and not the tax base or imputed income. In our material today, we propose to understand how to reduce UTII for insurance premiums in 2021.

In past years, there were differences in the reduction of UTII for individual entrepreneurs using hired labor and individual entrepreneurs working without employees. Moreover, it does not matter whether the individual entrepreneur entered into employment contracts or civil law contracts (contract agreements) with employees. But in 2017, changes took place in this area, which remain in force in 2020.

UTII subjects and features

As is known, those companies and individual entrepreneurs that are engaged in strictly defined types of activities, including the production and sale of goods, as well as the provision of various services to the population, can pay the Unified Tax on imputed income. Each region determines the list of activities falling under UTII independently, depending on on individual economic characteristics.

The main distinguishing feature of UTII is that the tax is paid by tax subjects not on actual profit, but on estimated income. The tax payment amount is fixed, although it may vary slightly depending on the location of the taxpayer.

If an enterprise or individual entrepreneur has switched to paying UTII, then this tax will have to be paid regardless of the amount of revenue . Even if for some period of time the business stood still, there were no agreements, contracts or transactions, you will still have to pay the tax fee. The only exceptions are those situations that are valid reasons for suspending activities, however, they must be documented.

The transition to UTII is strictly voluntary and requires only the submission of a corresponding application to the tax authorities.

Insurance premium rates

The basic rates of insurance premiums for employers making payments to employees in 2019-2020, including those using UTII, are established in Art. 425 Tax Code of the Russian Federation:

• 22% – from payments not exceeding the limit for calculating contributions to compulsory health insurance;
• 10% – from payments exceeding the limit for calculating contributions to compulsory pension insurance; 2.9% – from payments not exceeding the maximum amount for calculating contributions to VNiM.
• 5.1% for compulsory medical insurance;

FOR REFERENCE. The limit for calculating contributions for 2020 has increased to RUB 912,000. for contributions to VNiM and 1,292,000 rubles. for contributions to OPS. There is no maximum base for contributions to compulsory medical insurance. Let us recall that in 2021 the maximum amounts were: for VNiM - in the amount of 865,000 rubles, for OPS - 1,150,000 rubles. (Resolution of the Government of the Russian Federation dated November 15, 2017 No. 1378).

Read more about contribution limits in this article.

IMPORTANT! From 04/01/2020, reduced tariffs are available for SMEs, amounting to a total of 15%. Read more here.

The rates of contributions for insurance against industrial accidents are established depending on the class of professional risk of the main type of activity of the organization (Part 1, Article 21 of Law No. 125-FZ, Article 1 of Law No. 484-FZ).

See also “Insurance premium rates in 2021 - table”

Individual entrepreneurs who do not make payments to employees pay insurance premiums for themselves. Contribution rates for 2019-2020 are established in Art. 430 Tax Code of the Russian Federation. In 2021, the amount of fixed contributions is within 300,000 rubles. for individual entrepreneurs is:

• for compulsory medical insurance - 8426 rubles;
• for OPS - 32,448 rubles.

In 2021, it was equal to: for compulsory medical insurance - 6884 rubles, for compulsory health insurance - 29,354 rubles.

In addition, individual entrepreneurs need to make an additional payment to the Pension Fund (1% of income exceeding 300,000 rubles per year). The total amount of insurance premiums for compulsory health insurance for an entrepreneur who does not make payments to employees cannot exceed 8 times the fixed payment for the year. For 2021, the maximum is RUB 259,584. (32,448 × 8), for 2021 it could not exceed 234,832 rubles. (29,354 × 8).

For information on the amounts of fixed payments and examples of their calculation, see the article “Fixed payments for individual entrepreneurs in 2020.”

An example prepared by ConsultantPlus experts will help you check whether you calculate the fixed payment correctly. Get free trial access to the system and go to the Ready-made solution.

UTII: calculation and coefficients

To calculate UTII, accountants use a special formula. It is quite simple, but when using it you need to know the existing correction factors K1 and K2. K1 is formed at the federal level by the Ministry of Economic Development and depends on the amount of inflation, and K2 is developed by local governments based on certain territorial factors. These coefficients change every year, so it is important to track these changes.

The formula is:

Conditional basic yield * physical indicator * K1 * K2 * 15% = UTII

It should be remembered that the basic profitability for each type of activity is different, the same applies to physical indicators.

If an organization or individual entrepreneur has several types of activities on UTII, then taxes must be calculated for each of them separately.

After calculating UTII, a completely logical question arises: what ways exist to reduce the calculated tax using legal methods?

Attention! Reducing UTII, as well as any other tax levy, is quite possible. The procedure for reducing the “imputation” is prescribed in Article 346.32 of the Tax Code of the Russian Federation. It clearly indicates the expenses that reduce this tax levy.

These include:

• contributions under personal insurance contracts,
• payment of sick leave benefits at the expense of the employer,
• all insurance payments to extra-budgetary funds.

This might also be useful:

• Coefficients K1 and K2 UTII for 2021
• Changes in UTII for individual entrepreneurs in 2021
• UTII for individual entrepreneurs in 2021

• Basic UTII yield in 2021
• Retail trade on UTII in 2021
• Calculation of UTII for less than a month in 2021

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Reducing UTII for individual entrepreneurs with employees

As the law states, individual entrepreneurs who hire employees have the right to reduce tax contributions to the state budget by half the amount of insurance premiums paid from the staff’s earnings. At the same time, fixed payments made by individual entrepreneurs to extra-budgetary funds for themselves personally do not affect the amount of tax collection in any way.

Important! Individual entrepreneurs with hired personnel do not have the right to take into account fixed payments to extra-budgetary funds made for themselves to reduce the amount of UTII tax. It should also be noted that the limitation on tax reduction of 50% for individual entrepreneurs applies only to those tax periods in which he had employees.

BUT! New changes are coming from 2021. In particular, rules will come into force allowing individual entrepreneurs to include in the specified 50% contributions made to extra-budgetary funds not only for employees, but also for themselves personally.

Example: Individual Entrepreneur Vintikov T.K. paid 5000 rubles. to the Pension Fund and 2000 rubles. to the MHIF for yourself. He also paid 2,200 rubles. per employee in the Pension Fund and 510 rubles. for him in the Federal Compulsory Medical Insurance Fund. The amount of UTII is 19,000 rubles. Let's do the calculation:

UTII = 19,000 rub. – ((2200 rub. +510 rub.) / 2) = 17645 rub. - this is exactly how much he must pay as UTII to the state budget.

By what amount of contributions can the single tax be reduced?

To find out UTII for the quarter, you need to multiply the following indicators:

• BD (basic profitability) is a constant figure determined by type of activity.
• FP (physical indicator) is a figure that is different for each entrepreneur. This may be the area of ​​the sales floor, the number of staff, the number of vehicles or another indicator.
• K1 – coefficient established by the Ministry of Economy. Its size for 2021 is 1,798.
• K2 is a coefficient regulated by the local treasury.
• Rate – 15%.
• The number of months in the period is 3.

From 2021, individual entrepreneurs have the right to reduce UTII by insurance premiums “for themselves” and for employees. Please keep in mind:

• from 2021, individual entrepreneurs will be able to reduce the “imputed” tax by fixed insurance premiums “for themselves” without restrictions. Even if insurance premiums reduce the single tax by more than 50 percent;
• “imputed” tax in 2021 can be reduced by insurance premiums for employees. However, the deduction amount should still not exceed 50 percent of the accrued UTII amount.

If you switched to this special regime at the beginning of the current year, keep in mind that contributions for the previous year cannot be deducted. Then you used a different taxation system, and only deductions for imputed activities can be deducted from UTII.

If you do not have employees, then you can reduce your tax down to zero. Don’t forget the rule: before deducting contributions, they must first be transferred to the budget.

To use the full deduction, try to make insurance contributions for yourself evenly every quarter.

What is it for?

By law, you have the right to hold off on fixed insurance payments until December 31, and then pay the entire amount at once. But then you can only make a deduction from UTII for the fourth quarter. If the tax turns out to be less than the contributions, then their balance is burned out. You will no longer be able to transfer the amount that reduces UTII to the next period.

The same will happen if you transfer the entire amount of contributions in the first, second or third quarter. This does not matter if the tax amount is large, but if the amount of UTII is small, equal quarterly payments will allow you to use the deduction in full. Approach your payments wisely and you won’t have to donate extra money to the state.

When there are hired workers, insurance contributions for them also go towards reducing UTII, but at the same time the payment can be reduced by no more than 50%.

If you read somewhere on the Internet that individual entrepreneurs and employees cannot include contributions for themselves in the deduction, then do not rush to get upset. This is outdated information, and as of 2021 there are no such restrictions.

By the way, Internet accounting “My Business” will help you calculate imputed tax, taking into account deductions, and payments will be generated automatically.

The UTII tax is reduced in the UTII tax return itself, which you must submit quarterly; the declaration specifically provides columns for this.

Currently, many entrepreneurs use this Internet accounting to switch to UTII, calculate taxes, contributions and submit reports online, try it for free. The service helped me save on accountant services and saved me from going to the tax office.

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Good business, happy!

• insurance contributions to the pension fund and health insurance fund, paid by the entrepreneur for himself, in the established fixed amount;
• insurance contributions to the pension fund paid by the entrepreneur for himself in the amount of 1% of the amount of income exceeding 300,000 rubles in the reporting year.*

*A couple of years ago, the issue was often discussed that individual entrepreneurs cannot reduce taxes on insurance contributions by 1% to the Pension Fund. The reason was a letter from the Ministry of Finance (No. 03-11-09/57011 dated October 6, 2015), explaining that contributions to the Pension Fund in the amount of 1% do not reduce tax under the simplified tax system. However, this letter did not comply with the law and was withdrawn by the department (see Letter of the Ministry of Finance No. 03-11-09/71357 dated 12/07/2015).

Individual entrepreneurs' contributions for voluntary personal insurance do not reduce the UTII tax.

• in the amount of contributions actually paid in the reporting quarter.

In this case, the tax can be reduced to zero. For individual entrepreneurs without employees there is no 50% limit. But if the insurance premiums transferred for the quarter exceed the quarterly UTII, there will be no compensation, and the deduction of contributions already paid is also not carried forward to the next quarter.

Formula for calculating payment for imputation, taking into account deductions

Individual entrepreneurs without employees: reduction in UTII payments

If an individual entrepreneur does not use the help of employees and runs his business alone, then he has the right to reduce the amount of UTII deductions by the entire amount of fixed payments, that is, by 100% of payments made to extra-budgetary funds (PFR, MHIF) for himself personally.

In this case, it is very convenient for individual entrepreneurs - UTII payers who do not have hired employees - to divide fixed contributions into four parts quarterly and pay them at ¼ of the total annual contribution amount in each quarter. But even if for some reason this is not possible, it is important that the entire amount of fixed insurance premiums be paid in full during the year.

Example: IP Shklyaev D.K. no workers. In September of this year he paid 5,000 rubles. to the Pension Fund and 2000 rubles. to the MHIF. At the same time, the amount of his UTII tax payment is 17,500 rubles. After simple calculations, it is clear that he actually needs to pay to the budget: UTII = 17500-(5000+2000) = 10500 rubles.

Important news for entrepreneurs: how to reduce UTII 2021

Can an individual entrepreneur reduce the UTII tax by the amount of insurance premiums for himself, if his company employs personnel, in 2021? Yes. Justice has finally been restored. In clause 2.1 of Art. 346.32 was amended by Law No. 178-FZ, issued on June 2, 2021. It gives employers on UTII the right to reduce the tax on all types of insurance fees - both for staff and for themselves.

For example, if individual entrepreneur Pinchuk paid contributions for himself to the Federal Tax Service on April 15, he will be able to add them to the deduction in the 2nd quarter (April - June). But in the first one, for which the tax will be paid until April 25, he will not be able to.

Let's summarize the results for 2021, taking into account the changes:

• Businessmen without employees have the right to reduce UTII by deducting all contributions paid for themselves. There are no restrictions.
• Businessmen with staff - paid contributions both for themselves and in favor of the state. But the payment should not be halved compared to the original amount.

One more rule should be taken into account: the entrepreneur stands in line with the employers at the moment when he makes the first payment to the individual. face. It doesn’t matter if there was only one or several, from that moment on he reduces the duty as a taxpayer with employees. That is, reducing the UTII tax by the amount of insurance premiums in 2021 for individual entrepreneurs with employees hired during the reporting period, and calculated for the first time after this period, is impossible.

Example: entrepreneur Dvoretskaya hired a cook on March 14, and accrued the first payment in his favor on April 10. She can deduct contributions for the 1st quarter only in her favor, because the payment to individuals. the face passed already in the 2nd period. It doesn't matter that the cook was employed in 1.

LLC with employees: reduction of UTII

For an LLC, there is also a rule for reducing the accrued UTII by the amount of insurance premiums paid for the reporting quarter from employee salaries. True, just as in the case of individual entrepreneurs, no more than 50% of such payments can be accepted. Thus, the example of calculating the reduction in tax collection given above for an individual entrepreneur is equally suitable for an LLC.

Attention! Starting from 2021, UTII taxpayers have the right to accept overpaid insurance premiums as a tax reduction in any of the following quarters.

Let us remind you that previously this was possible only in the tax period in which they were paid to the budget.

Important! Many enterprises combine the special UTII regime with other taxation systems, for example, the simplified tax system. However, it is possible to reduce UTII by the amount of fixed payments only at the expense of those employees who work precisely in the type of activity that falls under the “imputation”.

Basic provisions on changing UTII from January 1, 2021

The single tax has been in effect since 2003 and applies to the following areas of activity:

• public catering;
• domestic services;
• small retail trade;
• veterinary medicine;
• repair services.

A tax of 15% is paid quarterly. Back in 2014, a bill was put forward to transfer all taxpayers to the patent system and abolish UTII. The reason was the same tax payment conditions for entrepreneurs with different income levels. The final decision was made in 2021 and included the elimination of the tax in 2021.