Simplified taxation system (USN, simplified taxation system, simplified tax system)

To learn how you can compare taxation systems in order to legally reduce payments to the budget when doing business, read the article “Taxation systems: how to make the right choice?” And for those who still have questions or those who want to get advice from a professional, we can offer a free consultation on taxation from 1C specialists:

Free tax consultation

What is the simplified tax system

The simplified taxation system is one of the most economically feasible tax regimes, allowing to minimize tax payments and reduce the volume of reporting.

A feature of the simplified tax system, like any other special regime, is the replacement of the main taxes of the general taxation system with one - a single one. The following are not subject to payment on the simplified basis:

• Personal income tax (for individual entrepreneurs).
• Income tax (for organizations).
• VAT (except for export).
• Property tax (except for objects for which the tax base is determined as their cadastral value).

Free tax consultation

Who has the right to apply the simplified tax system in 2021

Individual entrepreneurs and organizations that meet certain conditions, in particular:

• The income limit at the end of the reporting or tax period does not exceed 200,000,000 rubles.
• Number of employees: less than 130 people.
• The cost of fixed assets is less than RUB 150,000,000.
• The share of participation of other organizations is no more than 25% (condition for legal entities).

note

that from 2021 the limits on the use of the simplified tax system have changed and increased tax rates have appeared. If the income from the beginning of the year falls within the range of 150-200 million rubles and/or the number of employees is 101-130 people, the right to the simplified tax system is retained. In this case, starting from the quarter in which the limits were exceeded, an increased tax rate is applied. It is equal to 8% for the “income” object and 20% for the “income minus expenses” object. If the income exceeds 200 million rubles and/or the number of employees becomes more than 130 people, the right to “simplified” will be lost.

For organizations, income limit that allows you to switch to the simplified tax system

, amounts to 112.5 million rubles. This means that it will be possible to switch to a simplified system from next year if, based on the results of nine months of the current year, income did not exceed 112.5 million rubles.

Note

: the values ​​of the marginal income for the application and transition to the simplified tax system
were not subject to adjustment by the deflator coefficient until January 1, 2021.
According to paragraph 4 of Art. 4 of Law No. 243-FZ dated 07/03/2016, a deflator coefficient was set for 2021 equal to 1. Read about changes in tax rates and limits on the simplified tax system from 2021 here.

Tax legislation allows individual entrepreneurs to combine simplified and patent taxation systems; read about how to do this in this article.

Who cannot apply the simplified tax system

• Organizations with branches.
• Banks.
• Insurance companies.
• Non-state pension funds.
• Investment funds.
• Securities market participants.
• Pawnshops.
• Organizations and individual entrepreneurs producing excisable goods (for example, alcohol-containing and alcoholic products, tobacco, etc.). Since 2020, an exception has been introduced - on the simplified tax system it is allowed to produce excisable grapes, wine, sparkling wine (champagne), wine materials, grape must produced from grapes of own production.
• Organizations and individual entrepreneurs extracting and selling minerals, with the exception of common ones).
• Organizations involved in gambling.
• Organizations and individual entrepreneurs at the Unified Agricultural Sciences.
• Notaries and lawyers in private practice.
• Participants in production sharing agreements.
• Organizations in which the share of participation of other organizations does not exceed 25%, with the exception of a number of institutions listed in paragraph 14 of paragraph 3 of Art. 346.12 Tax Code of the Russian Federation.
• Organizations and individual entrepreneurs with more than 130 employees (the limit has increased since 2021).
• Organizations whose residual value of fixed assets exceeds 150 million rubles.
• Budgetary and government institutions.
• Foreign companies.
• Organizations and individual entrepreneurs who did not submit applications for the transition to simplified taxation on time.
• Private employment agencies.
• Organizations and individual entrepreneurs on OSN.
• Organizations and individual entrepreneurs whose income exceeds 200 million rubles. per year (the limit has increased since 2021).

Insurance premiums

The amounts of taxes and contributions of individual entrepreneurs to the simplified tax system depend on the number of employees and profit.

The following rates apply:

• 22% to the Pension Fund (with a maximum base of up to 1,292,000 rubles) or 10% (up to 912,000 rubles);
• 2.9 (or 1.8 for non-residents) - contributions to compulsory social insurance (OSS);
• 5.1% for compulsory health insurance (CHI).

From April 1, 2021, reduced rates apply: 10% for compulsory health insurance, 0% for compulsory social insurance and 5% for compulsory medical insurance.

If the activity is associated with dangerous and harmful working conditions, additional tariffs are added to the basic tariffs.

The entrepreneur also pays contributions for compulsory health insurance and compulsory medical insurance for himself. As for payments to the Pension Fund (PFR), their amount depends on income:

• profit up to 300 thousand rubles. — RUB 32,448;
• profit over 300 thousand rubles. - additional 1%, but not more than 8 times the amount of the insurance contribution to the Pension Fund (RUB 259,584).

The amounts in effect in 2021 are shown above.

Tax rates

For the simplified tax system with the object “income”

The basic tax rate is 6%, but it can be reduced by regional authorities to 1%.
From 2021, an increased tax rate has been introduced - 8%
. The procedure for applying bets is as follows:

1. Initially, the tax is calculated at the regular rate (6% or lower - depending on the region and activity).
2. If income since the beginning of the year has exceeded 150,000,000 rubles. or the average number of employees has become more than 100 people, then starting from the period in which this excess occurred and until the end of the year, tax under the simplified tax system must be calculated at a rate of 8%.
3. If income since the beginning of the year has exceeded 200,000,000 rubles. or the average number of employees has become more than 130 people, then the right to apply the simplified tax system is lost.

For the simplified tax system with the object “income minus expenses”

The basic tax rate is 15%, but it can be reduced by regional authorities to 5%.
From 2021, an increased tax rate has been introduced - 20%
. The procedure for applying bets is as follows:

1. Initially, the tax is calculated at the normal rate (15% or lower - depending on the region and activity).
2. If income since the beginning of the year has exceeded 150,000,000 rubles. or the average number of employees has become more than 100 people, then starting from the period in which this excess occurred and until the end of the year, tax under the simplified tax system must be calculated at a rate of 20%.
3. If income since the beginning of the year has exceeded 200,000,000 rubles. or the average number of employees has become more than 130 people, then the right to apply the simplified tax system is lost.

Rate of the simplified tax system “Income minus expenses”

The tax rate shows how much of the difference between income and expenses you will pay to the government. It ranges from 5 to 15%. The specific size is determined by the regions.

The simplified tax system rate in Moscow is 15% for everyone, 10% for those who do business in the field of social services, sports, livestock farming and others from the law of the city of Moscow.

The simplified taxation system rate in St. Petersburg is 7% for everyone. ​

The simplified taxation system rate in Yekaterinburg and the Sverdlovsk region is 7% for everyone, 5% for those doing business in the field of education, healthcare, sports and others from Article 2 of the law of the Sverdlovsk region No. 31-OZ.

Find out the rate of your region on the tax website: select your region and go to the “Features of regional legislation” section.

The rate will increase to 20% for any region if you earn more than 150 million in a year or hire more than 100 employees.

Transition to simplified tax system in 2021

To switch to the simplified tax system, you must submit a notification about the transition to the simplified tax system to the tax office.

Note!

To switch to the simplified tax system starting in 2021, you had to submit a notification before December 31, 2021. If you did not have time to do this, you will have to wait another year.

If you are just planning to open an individual entrepreneur or register an LLC, then the notification can be submitted either with documents for registration, or within 30 days after state registration.

note

, that if you do not meet the specified deadline, you will be automatically transferred to the main taxation regime - the most difficult and unprofitable for small and medium-sized businesses.

Existing individual entrepreneurs and organizations can switch to the simplified tax system only from January 1 of the next year. To do this, they must submit a notification before December 31 of the current year. Due to the fact that organizations in the application must indicate the income received for 9 months (as of October 1), they can submit the application no earlier than October 1.

To switch to the simplified tax system, existing individual entrepreneurs and LLCs must meet the following conditions:

• The amount of income for 9 months of the year does not exceed 112,500,000 rubles. (the condition applies only to organizations).
• The number of employees is no more than 130 people.
• The cost of fixed assets does not exceed 150 million rubles.
• The share of participation of other organizations is no more than 25%.

note

, you can switch to the simplified tax system only once a year, as well as change the object of taxation.

Read more about how to confirm your right to work on a simplified basis here.

Criteria for a simplified taxation system

In order to make a decision to switch to a simplified taxation system, an entrepreneur needs to very clearly understand the criteria of the simplified tax system:

Deadlines for paying the simplified tax system in 2021

At the end of each reporting period (1st quarter, half a year and 9 months), individual entrepreneurs and LLCs using the simplified tax system must make advance payments. In total, 3 payments must be made per calendar year - by April 25, July 25 and October 25. And at the end of the year you need to calculate and pay the final tax.

Note

: if the deadline for paying the simplified tax system falls on a weekend or holiday, then the deadline for payment is postponed to the next working day.

The table below shows the deadlines for paying the simplified tax system in 2021, taking into account postponements due to weekends:

Minimum tax (loss under simplified tax system)

If, at the end of the calendar year, an individual entrepreneur or LLC at the “Income minus expenses” object received a loss (expenses exceeded income), then it is necessary to pay the minimum tax (1%

from all income received).

In this case, the loss can be included in expenses next year or during one of the next 10 years (after which it is canceled). If there was more than one loss, then they are transferred in the same order in which they were received.

Also, when calculating tax according to the simplified tax system, it will be possible to take into account not only the loss of the previous period, but also the amount of the minimum tax paid last year. Let's look at an example of how to correctly take into account losses from previous years.

Example of accounting for losses from previous years

2019

Income - 2,650,000 rubles.

Expenses - 3,200,000 rubles.

Loss - 550,000 rubles.

The minimum payment at the end of the year is 26,500 rubles

(2,650,000 x 1%).

2020

Income - 4,800,000 rubles.

Expenses - 3,100,000 rubles.

The tax base at the end of 2021 can be reduced by the amount of the minimum tax paid for 2021 and the loss received in this period. Thus, the single tax base will be 1,123,500 rubles (4,800,000 - 30 - 550,000). The tax that will need to be paid for 2021 will be equal to 168,525 rubles

(1,123,500 x 15%).

Tax calculation

From the income received, subtract the expenses of the same period and multiply by the tax rate of your region.

Ivan registered an individual entrepreneur in Moscow and opened an online store. He bought phone cases for 20 thousand rubles, and then sold them for 50 thousand rubles. Tax simplified tax system = (50 thousand rubles - 20 thousand rubles) x 15%.

For information on how to correctly account for income, read our article “STS “Income”: how to report and how much to pay.” Remember the main rule: take into account income on the day you received money from the client.

Expenses are a little more complicated. To take them into account correctly, follow three rules:

1. The expense is named in Art. 346.16 of the Internal Revenue Code and is good for business.
2. The expense is confirmed by documents.
3. You have paid in full and received the product or service. To account for the cost of purchasing items to resell, wait until you sell the item.

We described these rules in more detail in the article “How to take into account expenses for the simplified tax system.”

Elba will calculate the tax on the simplified tax system “Income” and “Income minus expenses”. Get 30 free days when you sign up and try it yourself. If you are using the simplified tax system “Income” and all payments are sent to your current account, use our free service.

Tax accounting and reporting of individual entrepreneurs and LLCs on the simplified tax system in 2021

Tax return

At the end of the calendar year, it is necessary to submit one tax return to the simplified tax system.

Deadline for submitting the simplified tax system declaration in 2021:

Note

: if the deadline for filing the simplified taxation system declaration falls on a weekend or holiday, then the deadline for payment is postponed to the next working day.

Accounting for income and expenses (KUDiR)

Individual entrepreneurs and organizations using the simplified tax system are required to keep a book of income and expenses (KUDiR). There is no need to certify to the KUDiR tax office.

Accounting and reporting

Individual entrepreneurs using the simplified tax system are not required to submit financial statements and keep records.

Organizations using the simplified tax system, in addition to tax returns and KUDiR, are required to maintain accounting records and submit financial statements.

Accounting statements for different categories of organizations vary. In general, it consists of the following documents:

• Balance sheet (form 1).
• Statement of financial results (form 2).
• Statement of changes in capital (Form 3).
• Cash flow statement (form 4).
• Report on the intended use of funds (form 6).
• Explanations in tabular and text form.

More details about accounting and tax reporting in the accountant's calendar.

Reporting for employees

They rent only to individual entrepreneurs and organizations that have employees.

Learn more about reporting for employees.

Cash discipline

Organizations and individual entrepreneurs carrying out operations related to the receipt, issuance and storage of cash (cash transactions) are required to comply with the rules of cash discipline.

Learn more about cash discipline.

note

, in 2021 the transition to online cash registers began. In 2021, all organizations on the simplified tax system that carry out settlements with the population, as well as most entrepreneurs, are required to apply them. Individual entrepreneurs from the service sector without employees received the right to defer the installation of cash register systems until July 2021.

Additional reporting

Carrying out certain types of activities, as well as owning certain property, requires paying additional taxes and maintaining records.

Learn more about additional LLC taxes.

Learn more about additional taxes for individual entrepreneurs.

Certificate 2-NDFL is submitted in a machine-oriented form

Order of the Federal Tax Service of the Russian Federation dated October 2, 2018 No. ММВ-7-11/ [email protected] approved two forms of certificate. One is intended for employers submitting tax reports on paper (form 2-NDFL) and has a machine-oriented form. And the other is a certificate of income and tax amounts of an individual (issued to individuals upon application for presentation at the place of request).

Machine-oriented form 2-NDFL includes:

• main sheet (it reflects the amounts of income and personal income tax);
• application (it contains information about income and corresponding deductions, broken down by month of the tax period, indicating codes for types of income and codes for types of deductions).

Thanks to the machine-oriented form, tax authorities can now automate the process of scanning, recognizing and digitizing 2-NDFL certificates received on paper.

The Federal Tax Service warned that changing the 2-NDFL form will have virtually no effect on the employer, since XML files are generated using a special program.

Certificates using the new form will be submitted starting with reporting for 2021.

Separate accounting

When combining the tax regimes of the simplified tax system and the PSN, it is necessary to separate

income and expenses. As a rule, there are no difficulties with the division of income. In turn, with expenses the situation is somewhat more complicated.

There are expenses that cannot be clearly attributed either to the simplified tax system or to other activities, for example, the salaries of employees who are engaged in all types of activities at the same time (director, accountant, etc.). In such cases, costs must be divided

into two parts
in proportion
to the income received on an accrual basis from the beginning of the year.

How is the simplified tax system calculated: determining the tax base

Before calculating the 6% simplified tax system, you need to find the value of the tax base. Determining the tax base for this object of taxation does not present any great difficulties, since it does not involve the deduction of expenses and, accordingly, work to establish the composition of the latter for tax purposes.

In order to find out the tax base for the tax period, the actual income received is calculated quarterly on an accrual basis. At the end of the tax period (year), the overall result of income for this period is summed up.

Loss of the right to use the simplified tax system

Note!

A transition period under the simplified tax system has been approved since 2021. Now you can be on a simplified system until the amount of income exceeds 200 million rubles or the number of employees - 130 people. However, the tax will have to be paid at higher rates - 8 instead of 6% and 20 instead of 15%.

Individual entrepreneurs and organizations lose the right to use the simplified tax system if during the year:

• The amount of income exceeded 200,000,000 rubles.
• The average number of employees was more than 130 people.
• The cost of fixed assets exceeded 150 million rubles.

Starting from the quarter in which individual entrepreneurs and LLCs ceased to meet the specified conditions, they are transferred to OSN.

Insurance of accounts and deposits of small businesses

According to Federal Law No. 322-FZ dated August 3, 2018, from January 1, 2019, the system of insurance of deposits and accounts of individuals in Russian banks extended to micro-enterprises and small businesses. The right to receive an insurance payment in the event of revocation of a bank's license arises if, on the day the insured event occurs, information about the enterprise is contained in the Unified Register of Small and Medium-Sized Enterprises.

Learn more about how to get a refund on your deposits.