Reducing the simplified tax system for the amount of insurance premiums in 2021 for individual entrepreneurs

What the law says

Taxation issues for simplified people are regulated by Chapter 26.2 of the Tax Code of the Russian Federation. Payers can be both legal entities and individual entrepreneurs. When calculating tax, there are 2 rate options:

• 6% – only from “Income”;
• or 15% – from “Income minus expenses”.

By 2021, there have been relatively few changes related to the simplified tax system. Among them:

the income limit for switching to this special regime has been increased (also see “Income limit under the simplified tax system for 2021”);

• indexation to the deflator coefficient was canceled (until the beginning of 2020);
• An updated sample ledger for accounting income and expenses has been installed.

For more details, see “Changes to the simplified tax system in 2021.”

What changes have affected the calculation of the simplified tax system “Income”? According to the amendments made to Art. 430 of the Tax Code of the Russian Federation by Law No. 335-FZ, from January 1, 2018, pension and medical contributions do not depend on the minimum wage. Their amount for simplified individual entrepreneurs without staff is fixed:

• RUB 26,545 – pension contributions (for income from 300 thousand rubles – plus 1% of the excess);
• 5840 rub. – medical.

Also see “Insurance premiums of individual entrepreneurs for themselves in 2021: how to calculate and pay.”

The calculation procedure and payment deadlines for the simplified tax remain the same:

• I quarter – until April 25, 2018;
• first half of the year – until July 25, 2018;
• 9 months until October 25, 2021.

At the end of the calendar year, the remaining tax is calculated and paid. The deadline is the same as for filing a tax return:

• for individual entrepreneurs - no later than April 30, 2021 (taking into account the postponement after the first May holidays);
• for legal entities until April 1, 2021 inclusive.

Also see “Deadlines for payment of insurance premiums in 2021”.

Tax reporting of individual entrepreneurs on the simplified tax system with employees

If an individual entrepreneur who has a simplified taxation system has at least one employee, then the number of reports increases. In addition to the tax return, you must submit annually:

• 2-NDF certificate for each employee - once a year until April;
• information on the average number of employees - until January 20 of the year following the reporting year.

Simplified entrepreneurs submit quarterly:

• calculation of 6-NDFL - quarterly until the end of the month following the reporting quarter;
• payment of insurance premiums by the 20th day of the month following the reporting quarter.

Information on the average number of employees must be submitted twice:

• the first - no later than the 20th day of the month following the registration of the individual entrepreneur;
• the second - until January 20 of the year following the reporting period.

How to make a calculation

The procedure for calculating the tax of the simplified tax system “Income” is regulated by Art. 346.21 Tax Code of the Russian Federation. To do this, you will need a tax rate (in this case - 6%; for some regions it can be reduced down to 1%) and a tax base. What do we have to do:

Remember that the calculated tax is reduced by the amount of insurance premiums made in the reporting period. For individual entrepreneurs without employees 100%, for legal entities and businessmen hiring staff up to 50%.

Accounting

In terms of accounting, everything is quite simple. An individual entrepreneur does not keep accounts and does not submit annual financial statements. However, he is required to keep tax records. For this purpose, the entrepreneur must fill out a book of income and expenses for entities using the simplified taxation system. In it, the entrepreneur records all his income transactions.

Expenses of an individual entrepreneur on the simplified tax system with the object “income” are not taken into account, therefore column 5 of Section I of the accounting book is not filled out. However, it is necessary to reflect the insurance premiums paid in the book. They are reflected in Section IV.

Using the book of income and expenses, the individual entrepreneur calculates the tax payable in the reporting period. Information is entered into the book based on an extract from the current account.

Calculation example

LLC "Guru" is in a simplified tax regime with the object "Income" and has employees. It is necessary to determine the amount of advance payments deducted in the reporting periods of 2021. Actual income, insurance premiums and benefits made, as well as all final calculations are presented in the table below.

The Guru Society reached the end of 2021 with the following indicators:

There is an important feature of the calculation of the simplified tax system: when the listed amounts of benefits and contributions are paid by an organization or individual entrepreneur with employees, a reduction in the advance/tax on the amount of contributions and/or benefits as a whole is possible by no more than 1/2 of the advance.

When can the simplified tax system be used?

Not everyone can use the simplified tax system. Conditions of use are:

1. The number of employees is no more than 100 people;
2. Annual income no more than 150 million rubles;
3. The share of participation of other organizations should not exceed 25%;
4. Residual value less than 150 million rubles;
5. The organization has no branches.

Pawnshops, gambling organizers, individual entrepreneurs and LLCs producing excisable goods, etc. do not have the right to apply the Simplified Taxation System. (the full list is specified in paragraph 3 of Article 346.12 of the Tax Code of the Russian Federation)

You can apply for a simplified tax system when registering an LLC or individual entrepreneur, or within 30 days from the date of registration.

If the organization has already been operating, then it can switch to the simplified tax system if

if, based on the results of nine months of the year in which she submits a notice of transfer, her income did not exceed 112.5 million rubles.

What do individual entrepreneurs without employees pay?

Individual entrepreneurs who work without hiring labor pay their own pension and health insurance premiums.

For the purposes of calculating the simplified tax system “Income”, let’s assume that the income of individual entrepreneur Shirokov in 2021 was 150,000 rubles for each quarter. In March 2021, he transferred an additional contribution to the OPS for 2017 - 3,000 rubles. (1% from income more than 300,000 rubles per year).

In December 2021, individual entrepreneur Shirokov made a fixed payment in the amount of 32,385 rubles (for compulsory medical insurance 26,545 rubles + for compulsory medical insurance 5840 rubles).

The table below shows an example of calculating the simplified tax system “Income” in 2018:

Please note that in the latter case, when calculating the simplified tax system, we immediately reduce the 6% advance payment for the entire 2018 year:

• for an additional compulsory pension contribution – 3000 rubles;
• fixed payment – ​​32,385 rubles;
• advances for the first quarter, half of the year and 9 months of 2021 (previous periods).

Since we received a negative amount, it means that individual entrepreneur Shirokov does not pay tax for 2018: the allowed amounts for reduction exceeded it.

Also see “Rules for calculating advance payments under the simplified tax system.”

Read also

14.03.2018

USN income minus expenses: what is included in expenses

To understand what is included in the concept of “expenses”, it is necessary to carefully study the list established by law. For an individual businessman, the following options (finances spent) are relevant:

• purchase of funds necessary for the operation of the company;
• purchase of exclusive rights;
• production process costs.

The concept of expenses also includes the acquisition of intangible assets or know-how (in the field of electronics). Financial costs that can be written off in the new tax period:

• to obtain patents for the activities of an individual or company;
• carrying out repair work;
• necessary and force majeure financial costs;
• payment of wages;
• rental of premises or purchase;
• business or premises insurance.

In order not to miss the opportunity to reduce the financial burden, you need to carefully study the tax code, namely Article 346.

Reporting to Rosstat for individual entrepreneurs in 2021

Does an individual entrepreneur need to submit a report to statistics? Every 5 years, Rosstat conducts continuous monitoring, within which reporting is mandatory for all individual entrepreneurs. And just in 2021, all individual entrepreneurs must report on Form No. 1-Entrepreneur, the deadline for submission is April 1, 2021.

Between periods of continuous observation, reporting to Rosstat is selective; a request is sent to a specific entrepreneur. A fine may be imposed for violating the obligation to submit statistical reports. For individual entrepreneurs this is an amount from 10 to 20 thousand rubles. To play it safe, find out in advance whether you need to submit a report to statistics. This can be done by filling out the fields of a special form.

Form and example of drawing up a simplified declaration

You can download the form and sample for filling out reporting under the simplified tax system of 6% for individual entrepreneurs without employees below, which is current at the beginning of 2021 (for the report for 2020).
Table No. 1. Declaration under the simplified tax system for 2021 for individual entrepreneurs without employees: form and sample filling for the object “income”

Let's consider the ways in which a declaration under the simplified tax system of 6% for 2021 can be generated for individual entrepreneurs without employees and find out whether it can be filled out using an online calculator (special service).

Pros and cons of simplified tax system 6%

The simplified taxation system has many advantages:

• it is possible to reduce the size of obligations to the budget;
• the obligation to pay personal income tax and VAT is lifted;
• the process of document management, accounting and tax accounting is simplified;
• the number of reports that need to be submitted to regulatory authorities is reduced.

Advantages of the tax system

Despite the many advantages, this mode also has a number of disadvantages:

• difficulties arise when working with counterparties and VAT payers;
• the use of cash registers is required when making cash payments;
• even with a negative profit for the year, you will have to pay a minimum tax to the budget, the amount of which is 1.00% of the amount of income for the year;
• When switching to a simplified regime from the basic regime, losses from previous years cannot be carried forward.

How to calculate taxes

Individual entrepreneur simplified tax system calculator - how to calculate tax in a simplified manner

If a business entity does not know how to calculate tax obligations to the budget, it is recommended to use a special program. An online calculator will help you calculate how much you need to pay in advance and what the tax amount will be at the end of the year.

Individual entrepreneurs working on the simplified tax system at a rate of 6% must calculate the tax using a special formula:

Total annual income x 6% - advance payments (paid) - insurance premiums (transferred during the reporting period)

To understand how tax is calculated, individual entrepreneurs should look at this process using an example:

For 1 sq. 2021 total income - 800 thousand rubles.

Insurance premiums paid - 9000 rubles.

Advance payment amount for 1 sq. 2021 is calculated as follows: 800 thousand rubles. x 6% - 9000 rub. = 39,000 rub.

The advance payment for six months or nine months is calculated using the same principle.

Tax for the year will be calculated as follows:

Total income - 1 million rubles.

Insurance premiums - 20,000 rubles.

Advance payments - 30,000 rubles.

1 million rub. x 6% - 20 thousand rubles. — 30 ​​thousand rubles. = 10 thousand rubles.

Who can apply this tax system

Individual entrepreneurs who meet the following criteria can switch to the simplified system:

• there are no more than 100 people on staff;
• revenue received for the year does not exceed 60 million rubles;
• fixed assets are put on the balance sheet, the total residual value of which does not exceed 100 million rubles.

Who cannot apply the tax system

Note! Federal legislation provides restrictions for business entities that cannot apply the simplified tax regime. These are organizations that have operating branches, companies, among the founders of which there are legal entities. persons owning a share of 25% or more, individual entrepreneurs conducting certain types of activities.