Individual entrepreneur taxes in simplified form - types, rates, payment deadlines and responsibilities in 2021

Taxes and fees

Denis Pokshan

Expert in taxes, accounting and personnel records

Current as of June 4, 2018

According to the current rules, the submission of a tax return and payment of the simplified tax system for 2021 by individual entrepreneurs is made no later than April 30 of the year following the tax period. Delay in fulfilling a budget obligation by more than a day risks the accrual of penalties for the period of delay. Ignoring the obligation to submit reports to the Federal Tax Service leads to the emergence of questions from tax authorities for the businessman and, as a result, the imposition of penalties on him.

Who should pay the simplified tax system for 2021?

All persons, legal entities and individuals in the status of individual entrepreneurs, who apply a simplified system when taxing their business need to pay a single tax according to the simplified tax system. This system is presented as an alternative to the main mode. Profit tax for legal entities or personal income tax for individual entrepreneurs, VAT and partially property tax are replaced under the simplified tax system with a single tax, which is calculated at the rate:

• and lower if income is chosen as the object of taxation;
• 15% and lower if the object is income reduced by the amount of expenses.

ATTENTION! In some cases, simplified tax rates may rise to 8% and 20%. Find out which ones in the guide from ConsultantPlus. If you do not have access to the K+ system, get a trial online access for free.

To be able to apply the simplified tax system, economic entities must meet certain requirements in terms of annual income, average number of employees, formation of authorized capital, etc. You can read about all this in detail here. In addition, the simplified tax system cannot be used when carrying out certain types of activities, such as insurance or banking.

So, if a business entity has applied a simplified tax regime since January 1, 2020, or since registration in 2020, based on a tax application submitted, and has remained within the specified criteria for a year, then at the end of the year it needs to transfer the tax to the state treasury. It must be taken into account that in addition to this, advances on a single tax had to be paid during the year. We will tell you in the next section what deadlines you need to meet with the payment of advances and the final payment.

Common rules for simplifiers

The simplified encumbrance regime has the right to apply to merchants and organizations that meet three mandatory conditions:

• income does not exceed 150 million rubles (for the previous year);
• book value of property - no more than 150 million;
• the number of employees does not exceed 100 people.

If the conditions are met, then the economic entity has the right to switch to the simplified tax system. The Tax Code provides for two simplified taxation options:

Criterion or characteristic of the regime

Income minus expenses

All income receipts of an economic entity, both revenue from the main activity and non-operating and other income. Expenses of an economic entity are not taken into account when calculating the simplified tax system.

The difference between revenue and costs incurred. Moreover, all types of company income are included in the revenue part. The costs include only those expenses that are indicated in the Tax Code of the Russian Federation.

Benefits and relaxations

Regional authorities have the right to reduce the tax rate to 1%, in accordance with clauses 1, 3 of Art. 346.20 Tax Code of the Russian Federation.

The rate can be lowered by decision of the government authority of a constituent entity of the Russian Federation to 5%, in accordance with clause 2 of Art. 346.20 Tax Code of the Russian Federation.

The amount of insurance contributions, as well as temporary disability benefits (at the expense of the employer), is allowed to be offset against the transfer of the simplified tax system (clause 3 of article 346.21 of the Tax Code of the Russian Federation), but not more than 50% of the accrued payments for the single tax.

If the entity’s activities for the reporting year resulted in losses, then the minimum payment is applied. The amount is determined as 1% of the total income received during the reporting period.

What are the deadlines for paying tax according to the simplified tax system for the year?

The simplified tax system is calculated on an accrual basis from the beginning of the year. At the end of each quarter, the advance tax payment must reach the budget no later than:

• 25th of April;
• July 25;
• the 25th of October.

The deadlines for paying the simplified tax system for the year (final payment) vary depending on the category of taxpayer:

• Legal entities must meet the deadline by March 31, 2021.
• Individual entrepreneurs must make the last payment for 2021 no later than 04/30/2021.

Both dates are working, so there will be no postponements.

The tax amount is calculated in the tax return submitted at the end of the year. If, based on its results, the amount of calculated and paid advances turns out to be greater than the amount of the final payment, then an overpayment of tax arises, which can either be returned or offset against future payments.

It is also impossible not to note one more feature of the simplified system. If the taxpayer has chosen the object “income minus expenses” and the amount of calculated tax for the year is less than 1% of total income, then he will have to pay the so-called minimum tax, which will be equal to this 1%. The deadlines for paying the minimum tax coincide with those established for the final payment.

ConsultantPlus experts explained in detail how to correctly calculate the simplified tax system. Full trial access to K+ is available for free. If you apply the simplified tax system “income”, this ready-made solution will help you, and if “income minus expenses” - then this material is for you.

All economic entities using the simplified tax system, without exception, do not need to be late in paying the single tax, because this may result in sanctions imposed by the tax authorities. We will find out further what such sanctions may be expressed in.

Individual entrepreneur insurance premiums 2021

Contributions for oneself are the amounts that an individual entrepreneur pays for his pension and health insurance. Until 2021, contributions were paid to special extra-budgetary funds: PRF and Compulsory Medical Insurance, but then the function of collecting them was transferred to the Federal Tax Service.

Thus, individual entrepreneurs do not pay insurance premiums to the Pension Fund for themselves in 2021. In practice, other concepts are now used:

• contributions to compulsory pension insurance (OPI);
• contributions for compulsory health insurance (CHI).

The amount of individual entrepreneurs’ contributions for themselves is established by the state, and the following amounts are planned for 2021: 32,448 rubles for compulsory health insurance and 8,426 rubles for compulsory medical insurance. The deadline for their payment is December 31 of the current year, but it is more convenient to pay them in installments in order to immediately reduce advance payments.

In addition to these fixed amounts, which all entrepreneurs are required to pay regardless of the amount of income received in the business, there is one more additional contribution. It is 1% of annual income over 300,000 rubles.

Let's assume that an entrepreneur earned 830,000 rubles in 2021. Then the additional contribution will be (830,000 – 300,000 = 530,000) * 1%)) 5,300 rubles. In total, together with the fixed amount of insurance payments, he needs to transfer 46,174 rubles to the budget.

Next, as promised, we will show with examples how entrepreneurs pay the simplified tax system for different objects of taxation. And for those who still have questions or for 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 liability for late payment under the simplified tax system for the year?

If the deadlines for simplified taxation payments for 2021 are violated, the taxpayer will be charged penalties determined as follows:

• for legal entities - in the amount of 1/300 of the refinancing rate established by the Central Bank for each day of delay for the first 30 days and in the amount of 1/150 for each day starting from the 31st day;
• for individual entrepreneurs - in the amount of 1/300 of the refinancing rate for each day of delay.

If non-payment or incomplete payment of the single tax is revealed during an audit, then there will be a fine. Such a fine can be 20 or 40% of the tax amount, depending on the absence or presence of intent that led to this violation (Article 122 of the Tax Code of the Russian Federation). This may result in administrative liability for company officials, also expressed in the form of fines.

IMPORTANT! Tax officials can fine an organization or entrepreneur only for non-payment or incomplete payment of taxes at the end of the year. No fines are assessed for the amount of unpaid advances (clause 3 of Article 58 of the Tax Code), but penalties are charged on them.

Advance simplified tax system: to pay or not to pay

First, let’s define what an advance payment is under the simplified tax system. This is part of the tax liability credited to the Federal Tax Service as an advance payment. The listed advances are counted when calculating the final transfer according to the simplified tax system.

Advance payments must be paid to the budget no later than the 25th day of the month following the reporting period. Transfer amounts should be calculated on an accrual basis. Pay the annual payment to the Federal Tax Service no later than March 31 of the year following the reporting year.

Deadline for making advance payments under the simplified tax system for 2021:

1. Termination of the activities of an individual entrepreneur or company: then you need to pay the Federal Tax Service no later than the 25th day of the month following the month of liquidation.
2. If the taxpayer has lost the right to use the simplified tax system. Then transfer the payment by the 25th day of the month following the quarter in which the subject lost the right to apply the simplification.

If the last day of payment falls on a holiday, weekend or other non-working day, then the budget should be paid on the first working day. But representatives of the Federal Tax Service do not recommend postponing settlements until the last day. Make payments in advance to avoid interest and penalties.

Results

Persons who have chosen this tax regime will pay a single tax according to the simplified tax system based on the results of 2021. The tax must be paid by legal entities by March 31, 2021, and by individual entrepreneurs by April 30. The tax base and the tax itself are calculated in the declaration submitted to controllers at the end of the year. If taxpayers fail to pay the simplified tax system for the year within the allotted time frame, they face sanctions imposed by the tax authorities in the form of penalties and fines.

Sources: Tax Code of the Russian Federation

You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

How to calculate the advance tranche of the simplified tax system 6%

The rules for calculating advance transfers of the simplified tax system in 2021 have not changed. To do this, follow the step-by-step instructions on how to calculate the advance payment according to the simplified tax system “Income”.

Step 1. We sum up all types of income of an economic entity from the beginning of the year to the end of the quarter for which we plan to transfer the advance tranche. For example, to pay for the first half of 2019, we include all income in the calculation, in accordance with Art. 249 and 250 of the Tax Code of the Russian Federation, from 01/01/2019 to 06/30/2019 - until the last day of the second quarter.

Step 2. We apply a tax rate of 6% to the received amount of income. We take into account regional relaxations: the authorities of the constituent entities of the Russian Federation can reduce the rate to 1%.

Step 3. Reduce the payment by the amount of insurance coverage paid:

1. If the payer is an individual entrepreneur without employees, then the advance payment of the simplified tax system can be reduced by insurance premiums paid for oneself in full.
2. For employers (individual entrepreneurs and organizations), the advance amount under the simplified tax system can be reduced to 50%. Include in your calculations payments for employee insurance and sick leave paid by the employer.

We calculate the advance payment for the simplified tax system at 15%

We calculate the advance tranche for the simplified tax system “Income minus expenses” by analogy. We follow the instructions:

1. We calculate the company's income from the beginning of the year to the end of the reporting quarter. In income we include the positions indicated in Art. 249-250 Tax Code of the Russian Federation.
2. Now we calculate the company’s costs for the same period. We are guided by the provisions of Art. 346.16 of the Tax Code of the Russian Federation when determining expenses.
3. We calculate the taxable difference using the formula: income minus expenses.
4. To the resulting difference we apply a tax rate of 15% or a regional rate. Can be reduced to 5%.
5. We subtract the already transferred advances for the reporting year from the amount received.

If the result of the activity at the end of the year was a loss, then you will have to transfer 1% of the total income received for the reporting year. Advance payments will reduce the final payment.

Articles on the topic

Deadline for payment of the simplified tax system for 2021 for individual entrepreneurs for annual payments, tax advances and special situations - read the article and download reference books, current forms and completed sample documents for free.

The following will help you correctly calculate and timely transfer the tax paid under the simplified tax system:

You can fill out reports according to the simplified tax system online and submit them via the Internet in the BukhSoft program. It transmits any reporting online automatically. You can send declarations and calculations to the tax service, social services. fear, Pension Fund, Rosstat and other government agencies. Before sending, any report is tested by all verification programs of the Federal Tax Service and the Pension Fund of Russia. Try it for free: