Reduced insurance premium rates for simplifiers: application procedure

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.

Preferential tariffs when combining simplified taxation system and UTII

The combination of two special regimes - simplified tax system and UTII - is permitted by tax legislation. If a “simpler” who has the right to a preferential rate of insurance premiums is still carrying out activities transferred to UTII, he will not lose the right to the benefit if the share of income from the main activity is 70% or more of the total income.

For example, a company combines the simplified tax system and UTII. Moreover, the main type of activity from which it receives more than 70% of its income is imputation. If this type of business is listed in the list of preferential types of activities (clause 5, clause 1, Article 427 of the Tax Code of the Russian Federation), then the “simplified” person can pay insurance premiums at a reduced rate in relation to the “imputed” activity.

However, in this case, the second criterion - based on the total amount of income for the year, which should not exceed 79 million rubles - is determined for all types of activities (both simplified taxation system activities and “imputation”).

The situation is different if a company or individual entrepreneur applies only UTII in relation to a preferential type of activity. In this case, she cannot count on benefits in the form of reduced insurance premium rates (letter of the Ministry of Finance of Russia dated April 3, 2021 No. 03-15-06/19230). This is due to the fact that there are no provisions in the Tax Code that would establish reduced insurance premium rates only for “imputed” people. Therefore, organizations and individual entrepreneurs on UTII, engaged, for example, in the maintenance and repair of cars, cannot apply reduced insurance premium rates.

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.

Income share clause

The condition of a 70% share of income from core activities established by clause 6 of Art. 427 of the Tax Code of the Russian Federation, must be carried out throughout the entire period of application by the “simplified” reduced tariffs of insurance premiums.

In other words, if at the end of the 2021 calculation year the condition of a 70% share of income from core activities is met, then from 2018 the “simplified” has the right to apply reduced tariffs. However, if, based on the results of activities for the reporting (billing) period, he does not confirm compliance with the specified condition, then he will lose the right to reduced tariffs, and retroactively - from the beginning of the billing (reporting) period in which the discrepancy was made. The Federal Tax Service drew attention to this nuance in Letter dated March 1, 2017 N BS-4-11/3705.

From paragraph 6 of Art. 427 of the Tax Code of the Russian Federation it follows that a similar mechanism operates in the opposite direction, since income under the simplified tax system is determined on an accrual basis. That is, in practice, situations are possible when, for example, at the end of the first half of 2021, the condition of a 70% share of income from the main activity will be met. In this case, the simplifier will have the right to recalculate insurance premiums, applying reduced rates from the beginning of the billing period.

The legality of such a recalculation was noted by Federal Tax Service specialists in Letter dated October 25, 2017 N ГД-4-11/ [email protected] They explained that in order to exercise the right to retroactively reduced tariffs, the “simplified” person must fill out Appendix 6 “Calculation of compliance with the conditions for applying the reduced tariff of insurance contributions by payers specified in subparagraph 5 of paragraph 1 of Article 427 of the Tax Code of the Russian Federation" to Sec. 1 calculation (Calculation form approved by Order of the Federal Tax Service of Russia dated 10.10.2016 N ММВ-7-11/ [email protected] ), and in accordance with Art. 81 of the Tax Code of the Russian Federation - provide updated calculations for past reporting periods (in particular, for the first quarter of 2018).

Let us add: the “simplified” person can subsequently dispose of the amount of overpayment for insurance premiums at his own discretion: either return it or count it against future payments (clause 1.1 of Article 78 of the Tax Code of the Russian Federation).

What has changed since November 27, 2017

On November 27, 2021, Federal Law No. 335-FZ dated November 27, 2017 came into force. In this regard, the names of preferential types of activities now coincide with the names of the structural units of OKVED 2. And now there is no need to use transition keys between the classifiers OKVED1 and OKVED2.

The new list of preferential types of activities eliminates the problem of discrepancies between individual codes according to OKVED 1 and OKVED 2. Thus, in particular, previously it was unclear whether organizations and individual entrepreneurs could apply reduced tariffs for the following types of activities:

• activities of travel agencies and tour operators;
• computer equipment management;
• repair of machinery and equipment, repair of electrical equipment.

These types of activities are included in the new list. This means you can definitely apply the benefit!

The new edition of the amendments applies to the period starting from January 1, 2021. Therefore, if an organization transferred insurance premiums at the usual rate during 2021, then it should submit updated calculations of contributions to the Federal Tax Service, as well as applications for offset (refund) of overpaid payments.

Basic insurance premium rates in 2021

Insurance premiums at the basic rates are paid by those employers (customers under GPC agreements) who are not entitled to preferential rates in accordance with Article 427 of the Tax Code of the Russian Federation. The total rate for them in 2018 will be 30% (Article 426 of the Tax Code of the Russian Federation), of which:

• 22% – accounted for by pension insurance;
• 5.1% – falls on health insurance;
• 2.9%* – accounts for social insurance.

<*> The percentage of calculation of social insurance contributions from payments to foreigners and stateless persons who are temporarily staying in the Russian Federation and are not highly qualified specialists is 1.8% (paragraph 2, paragraph 2, article 426 of the Tax Code of the Russian Federation).

By the way! The authorities have maintained a 30 percent rate on contributions until 2021 (inclusive). Let us recall that previously the Tax Code stipulated a different expiration date for this tariff – 2021.

At the same time, contributions to OPS and OSS in case of VNIM are calculated according to the tariffs indicated above until the total amount of payments in favor of an individual from the beginning of the year (taxable base) reaches the maximum value.

The maximum amount of the base for each type of contribution is different. It is established annually by the Government of the Russian Federation (clauses 3 – 6 of Article 421 of the Tax Code of the Russian Federation). Thus, the following values ​​are planned for 2021:

• the maximum base for contributions to compulsory pension insurance is 1,021,000 rubles;
• the maximum base for contributions to OSS in the case of VNiM is 815,000 rubles.

You can find out more information about the maximum base for calculating insurance premiums in 2021 from this article.

When the maximum value is reached, the income of a “physicist” (paragraph 3, clause 1, article 426 of the Tax Code of the Russian Federation, clause 3, article 421 of the Tax Code of the Russian Federation):

• subject to compulsory health insurance contributions at a rate of 10%;
• is not subject to contributions to OSS in case of VniM.

Note! There is no maximum base for medical contributions, so they are calculated from all taxable payments of a citizen.

Table 1 – Basic rates of insurance premiums in 2021

New list and new codes

Let's assume that the company's type of activity code begins with the numbers from the left column of the new list of preferential types of activities according to the simplified tax system. If so, you can pay insurance premiums at reduced rates, which means you can apply a reduced rate (subject to other requirements). Here is a table with the new OKVED2, valid from November 27, 2017:

Read also

26.01.2018

List of activities

So that you do not have to wade through the jungle of the law, which has more than 100 pages, and study the entire Talmud on your own, we have prepared for you a convenient table with a list of activities for applying reduced contributions.

Source:

"Clerk"

Heading:

simplified tax system

reduced insurance premiums of the simplified tax system instructions for an accountant 2018

• Natalya Petrova, editor of “Clerk”

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