Income limit for applying the simplified tax system in 2021

In June 2021, the State Duma adopted a bill amending the Tax Code of the Russian Federation. On its basis, Federal Law No. 243-FZ dated July 3, 2016 was adopted, the provisions of which will come into force on January 1, 2021. Article 2 of the Law made significant amendments to the limits limiting income for the application of the simplified taxation system.

At what revenue limit will it now be possible to switch to the simplified system? How will the 2021 income limit change for those who already apply the simplified tax system? Can the innovations adopted by law affect “simplified” activities now, and how can simplifiers retain their right next year? We will try to answer the questions asked in this article.

What will change for the simplified tax system in 2021

Changes in the simplified tax system will be joyful for many, since more small businesses will be able to apply the simplified tax system starting next year, and here’s why:

• the income limit under the simplified tax system will roughly double from 2021 - from 60 to 120 million rubles (actually a little less, taking into account annual indexation),
• the maximum revenue of legal entities for 9 months of the year in which an application to switch to the simplified system is submitted will also increase and become equal to 112.5 million instead of 45 million rubles. At first it was assumed that it would be 90 million rubles. (Federal Law No. 243-FZ of July 3, 2016), and then the amount was increased additionally to 112.5 million (Federal Law No. 401-FZ of November 30, 2016),
• for organizations, the permissible residual value of fixed assets will increase from 100 million to 150 million rubles.

But, at the same time, a “fly in the ointment” has been added: until 2021, the application of the deflator coefficient to the limits of “simplified” income and revenue for the transition to the simplified tax system will be suspended. That is, in fact, the limit amounts will not double, but slightly less.

The deflator coefficient helps to increase the existing income limits quite significantly. Now it is equally valid for those who are just planning to switch to a simplified system from the new year, and for those who are already working on the simplified tax system.

The simplified tax system limit on the cost of fixed assets will also increase

The value of the organization’s property, which can be owned on a simplified basis, will increase by 1.5 times in 2021. This limit increases from 100 million to 150 million rubles. The amount of residual value is determined according to accounting rules. Both companies already using the simplified tax system and those who are just planning to switch to a special regime need to monitor the maximum cost. Individual entrepreneurs do not control the cost of the OS during the transition, but even when using the mode they are required to monitor this value. Otherwise, they risk losing the right to use the regime. Such clarifications were given by the Ministry of Finance in letter dated January 20, 2016 No. 03-11-11/1656.

Simplified tax system 2021: income limit for transition

Let us remind you that you can become a simplifier only from the beginning of the next year, for which you need to submit a notice of transition to the Federal Tax Service, at the place of residence of the individual entrepreneur or at the location of the legal entity, no later than on the last day of the current year (clause 1 of Article 346.13 of the Tax Code of the Russian Federation ). But it is not enough to just declare that you have decided to change the tax regime to a simplified one, because there are still a number of restrictions and requirements that must be met.

Not everyone can switch to the simplified tax system; for example, the simplified system is not available for the following categories of taxpayers (Article 346.12 of the Tax Code of the Russian Federation):

• organizations with branches,
• legal entities in which more than a quarter is retained by other organizations (except for those specified in clause 14, clause 3, article 346.12 of the Tax Code of the Russian Federation),
• Individual entrepreneurs and organizations paying the unified agricultural tax,
• private notaries and lawyers,
• pawnshops, banks, insurance companies, investment and non-state pension funds, microfinance organizations,
• professional participants in the securities market,
• representatives of the gambling business,
• organizations participating in production sharing agreements,
• budgetary and government institutions,
• foreign organizations,
• private employment agencies.

To switch to a simplified regime in 2021, you also need to comply with certain limits:

in terms of the number of employees - no more than 100 people, in terms of the residual value of the organization's fixed assets - no more than 100 million rubles, in terms of the level of income of a legal entity for 9 months of the year before the transition to the simplified tax system - no more than 45 million rubles.

Until the amendments to the new law come into force, the amount of revenue limiting the transition to a simplified tax system (Clause 2 of Article 346.12 of the Tax Code of the Russian Federation) must be multiplied by the deflator coefficient established by Order of the Ministry of Economic Development dated October 20, 2015 No. 772. In 2021, its value equals 1.329. As a result, we find that in order to switch to a simplified regime from January 1, 2021, the organization’s income for 9 months of 2021 should not exceed the level of 59.805 million rubles: 45,000,000 * 1.329 = 59,805,000

The composition of “transitional” income includes income determined in accordance with Article 248 of the Tax Code of the Russian Federation. These are income from sales excluding VAT and non-operating income.

By paying a single tax on imputed income (UTII) for one type of business activity or several, the remaining types that are on OSNO can be transferred to a simplified tax system. The limit for the transition is calculated in this case only on income from activities on the general system (clause 4 of Article 346.12 of the Tax Code of the Russian Federation).

In the case where an organization, combining UTII with simplified taxation, decided to abandon the “imputation” and switch completely to the simplified tax system, the transition limit should be calculated based on “simplified” income. Income from “imputed” activities is not taken into account (letter of the Ministry of Finance dated March 27, 2013 No. 03-11-06/2/9647).

Example

The activities of Alpha LLC are wholesale and retail trade. Moreover, wholesale trade is subject to income tax, and retail trade is transferred to UTII. It was decided to transfer wholesale trade to a simplified regime from January 1, 2021.

The income of Alpha LLC for 9 months of 2021 amounted to 115,000,000 rubles, including:

• from wholesale trade – 55,000,000 rubles,
• from retail trade – 60,000,000 rubles.

The amount of total income exceeds the limit for switching to the simplified tax system, but since “imputed” income is not taken into account when calculating the income allowed for the transition, we take only income from wholesale trade on the simplified tax system - 55,000,000 rubles.

The limit for switching to a simplified system from January 1, 2021, taking into account the deflator coefficient, is 59,805,000 rubles. Revenues from OSNO do not exceed this amount, which means Alpha LLC has the right to transfer wholesale trade activities to a simplified system in 2021.

Income limit for switching to simplified tax system

One of the main requirements for the transition and application of the simplified tax system for legal entities is the limitation on the maximum amount of income . An organization has the right to switch to a simplified regime only if, based on the results of its activities for nine months of the year in which it notifies the fiscal authorities of the transition to the special regime, revenue does not exceed 112.5 million rubles .

Every year until December 31 of the current year, the revenue limit is subject to indexation. For this purpose, the deflator coefficient established for the next year is determined. Let us recall that for three years 2017–2019 the revenue limit was not indexed by the deflator coefficient in accordance with Federal Law No. 243-FZ of July 3, 2021.

Thus, the maximum income of an enterprise for the transition to the simplified tax system from 2020 cannot exceed 112.5 million rubles.

When can the new “transitional” limit of the simplified tax system of 2017 be applied?

The limit on the number of employees allowing the transition to a simplified system in 2021 will remain the same - 100 people. The residual value of fixed assets will increase from 100 to 150 million rubles, but the transitional income limit for organizations will double from 2021: from January to September inclusive, those wishing to join the ranks of simplified workers will be able to earn 112.5 million rubles, and not 45 million as now. There is no need to multiply them by the deflator coefficient, at least in the next three years - this function is “frozen” until January 1, 2021.

The new increased limit for switching to a simplified regime can only be applied from January 1, 2021. To do this, for 9 months of 2017, revenue should not exceed the level of 112.5 million rubles. And as before, this restriction will not apply to the income of individual entrepreneurs.

Income limit in 2021 for the simplified tax system when combined with the patent system

An individual entrepreneur can conduct his financial and economic activities by combining two modes of payment of tax obligations at once - patent and simplified tax system. In this case, there will also be a limit on the profit received.

The limited amount is set similar to the threshold for the usual “simplified” system - 79 million 740 thousand rubles. To make the calculation, it is necessary to sum up the profit received from the two systems. The final amount of income received is compared with the threshold established by government agencies. When calculating, you should take into account the deflator coefficient, which is established for the reporting period (year) by an official administrative document.

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How to stay simplified in 2021

In order to “hold on” to the simplification, those who are already using it now must fulfill certain conditions. In particular, try not to exceed the income limit when working on the simplified tax system. In 2021, its size is 60 million rubles (clause 4 of Article 346.13 of the Tax Code of the Russian Federation), to which the previously mentioned deflator coefficient of 1.329 should be applied. As a result, we get the maximum amount of income of 79.740 million rubles:

60 000 000 * 1,329 = 79 740 000

So, in order not to fall short of the simplified system, by the end of 2021 you can earn no more than 79.740 million rubles using the simplified tax system, and this requirement applies not only to enterprises, but also to individual entrepreneurs (letter of the Ministry of Finance dated 03/01/2013 No. 03-11-09/ 6114). As soon as the simplified person’s income goes beyond the specified revenue limit under the simplified tax system in 2021, the right to use the “simplified” special regime will be lost. You will need to pay taxes under the general taxation system from the first day of the quarter in which the limit was violated. The amount of the “income” limit is the same for both simplifiers with the object “income” and for those who charge a single tax on the difference between income and expenses.

Example

Omega LLC is engaged in wholesale and retail trade, and also provides transportation services. All trade has been simplified, and transport has been taxed. For the period from January to October 2021, income was received in the amount of 86,000,000 rubles, of which:

• from wholesale trade – 36,000,000 rubles, including 800,000 rubles in October,
• from retail trade – 44,000,000 rubles, including 1,000,000 rubles in October,
• from transportation services - 6,000,000 rubles, including 200,000 rubles in October.

Omega's total income exceeds the permissible limit of 79,740,000 rubles, but revenue from transportation services must be excluded from it, since they are subject to UTII.

Income from “simplified” activities for 10 months of 2021 amounted to 80,000,000 rubles (36,000,000 + 44,000,000). The income limit allowed under the simplified tax system was exceeded in October by 260,000 rubles. Since the excess occurred in the fourth quarter, the company loses the right to use the simplified system from October 1, 2021 and automatically switches to OSNO.

To prevent this from happening to your business, you will have to monitor your income throughout the reporting quarter, checking its level with the amount of maximum revenue under the 2021 simplified tax system.

Let's consider how “simplified” income should be determined. To calculate the limit, simplifiers must take into account funds received from sales, as well as non-operating income received during the tax period from activities subject to a single tax on the simplified tax system. Income from sales includes not only cash proceeds received from the sale of own goods or for services rendered, but also income from the sale of property rights, for example, from the sale of a fixed asset, land, etc. Payment can be received both in cash and in kind (clause 1 of Article 249 of the Tax Code of the Russian Federation).

Non-operating income is indicated in the list of Article 250 of the Tax Code of the Russian Federation, in particular they include:

• income from previous years discovered in the reporting period,
• positive or negative exchange rate difference resulting from the purchase and sale of foreign currency,
• income from rental property,
• interest received on bank deposits, accounts, loan agreements, securities, etc., property or property rights received free of charge,
• income received from equity participation in other legal entities,
• income from participation in a simple partnership.

When determining the maximum revenue under the simplified tax system in 2021, you need to take into account all receipts, including advances. The date of receipt of income is the day when the money was received in a bank account or cash register, or the day when property rights, other property were received, services were provided, work was performed, or when the debt was repaid in some other way (clause 1 of Article 346.17 Tax Code of the Russian Federation).

However, it is not necessary to include in income:

• all receipts listed in Art. 251 Tax Code of the Russian Federation,
• dividends and interest subject to income tax specified in paragraphs 1.6, 3 and 4 of Article 284 of the Tax Code of the Russian Federation,
• income of individual entrepreneurs, on which personal income tax is charged at rates of 35% and 9% (clauses 2, 4 and 5 of Article 224 of the Tax Code of the Russian Federation).

All of these points must be taken into account when tracking your actual income from “simplified” activities for the tax period, so as not to exceed 79.740 million rubles of the maximum income under the simplified tax system in 2021 (letter of the Ministry of Finance of the Russian Federation dated July 1, 2013 No. 03-11-06/2/24984 ).

It is often only towards the end of the year that entrepreneurs suddenly discover that they have approached a critical point. In such a situation, it seems that the situation can no longer be saved, and the transition to OSNO is inevitable. But many may still have a chance to stick with the simplification. If you know how much money should come from buyers or clients before the end of the year, then you can try to limit how much money goes into your account or cash register.

Since the limit includes only actual receipts from simplified activities, shortly before the end of the current year it is possible to agree with buyers to postpone payment to January. So, taxable income for these amounts will appear to you only in January of the next year and will not affect the “simplified” income of the current year.

Example

The total income of individual entrepreneurs on a simplified basis from January to November amounted to 77,000,000 rubles. In December, the buyer is expected to make two payments for 2,000,000 and 1,000,000 rubles. In order not to exceed the “simplified” income limit at the end of the year, the individual entrepreneur and the buyer agreed to defer one payment in the amount of 1,000,000 until January next year. Thus, the individual entrepreneur’s income for the current year amounted to 79,000,000 rubles (77,000,000 +2,000,000). The limit for using the simplified tax system next year has been met.

There are other ways in which you can delay the receipt of revenue in the reporting year. One of them is concluding a loan agreement with the buyer. According to paragraphs. 10 p. 1 art. 251 of the Tax Code of the Russian Federation, funds received as debt are not included in the tax base. That is, in addition to the purchase and sale agreement, a loan agreement is concluded with the buyer for the same amount that he must pay you for the goods. The goods are shipped, but the money from the buyer this year does not come under the purchase and sale agreement for this product, but as money received as a loan under a loan agreement. Under two agreements, counter obligations arise between you at the end of the year. Next year, it is necessary to offset the obligations under the purchase and sale and loan agreements with the buyer.

Example

A purchase and sale agreement for the amount of 10,000,000 rubles was concluded between Rassvet LLC and Zakat CJSC. The seller, Rassvet LLC, works on the simplified tax system, and its simplified revenue from the beginning of the year amounted to 78,000,000 rubles. In order not to exceed the annual income limit, a loan agreement was concluded with the buyer for the same amount of 10,000,000 rubles, according to which Sunset transferred the money to Rassvet. The loan amount is not included in “simplified” income, which means the annual limit will not be exceeded.

“Rassvet” shipped the goods this year, and in January of the next year, mutual claims were offset between “Zakat” and “Rassvet” in the amount of 10,000,000 rubles. Thus, the actual payment under the purchase and sale agreement took place in January and it will be credited to the amount of income under the simplified tax system next year.

It is also possible, instead of a purchase and sale agreement, to conclude a commission agreement with the buyer. In this agreement, the buyer will act as a customer, and you as an intermediary or commission agent. The bottom line is that only the commission will be considered taxable income, and not the entire amount you receive from the buyer. The property and funds that the commission agent receives from the customer are not included in the taxable base for the “simplified” tax (clause 1, clause 1.1, article 346.15; clause 9, clause 1, article 251 of the Tax Code of the Russian Federation). Under the contract, the goods will be purchased with the money of the customer (buyer), but under the responsibility of the intermediary. The customer pays you a commission in an amount equal to the amount of profit you plan to receive from the transaction.

Example

Alpha LLC, working on a simplified basis, received 68,000,000 rubles in income from equipment trading in 9 months. In the fourth quarter it is planned to receive 13,000,000 rubles from the buyer. Alpha LLC purchases equipment from the supplier at a price of 10,000,000 rubles. It is planned to make a profit from the transaction in the amount of 3,000,000 rubles (13,000,000 – 10,000,000). As a result, for 12 months the income will be 81,000,000 rubles (68,000,000 + 13,000,000). With such an income, it is impossible to remain on the simplified system, since the limit will be exceeded by 1,260,000 rubles.

In order not to lose the right to the simplified tax system this year, Alpha LLC entered into a commission agreement with the buyer of the equipment. Moreover, according to the agreement, Alpha LLC, as an intermediary, must purchase equipment from the supplier for the customer, which in our case is the buyer. The equipment will be purchased under the responsibility of the intermediary and on his behalf, but at the expense of the customer (buyer). Next, the purchased equipment is transferred to the customer, and Alpha LLC receives a commission from him for its services. In numbers it looks like this:

• The cost of equipment purchased from the supplier is 10,000,000 rubles.
• The amount of commission for the services of the intermediary Alpha LLC is 3,000,000 rubles.
• The total amount that the customer will transfer to the account of Alpha LLC is 13,000,000 rubles (10,000,000 + 3,000,000).

According to Art. 251 of the Tax Code of the Russian Federation, the cost of equipment purchased from the supplier (10,000,000 rubles) is not included in the tax base. The “simplified” income will only include the amount of commission from Alpha LLC - 3,000,000 rubles. The total amount of “simplified” income for the year will be 71,000,000 rubles (68,000,000 + 3,000,000). This amount does not exceed the revenue limit under the simplified tax system for 2016, which means Alpha LLC will remain on a simplified basis next year.

Let us say right away that it is still not worth abusing the conclusion of such agreements as in the last two examples. There is a risk that the tax authorities will have certain questions during a desk audit, and they will consider your actions to be a concealment of proceeds. The more carefully contracts are drawn up and all conditions are spelled out, the higher the chance that inspectors will not reclassify them as purchase and sale agreements.

How to combine the simplified tax system with other taxation systems

The simplified tax system can be combined with a patent, but not with the OSNO and the unified agricultural tax. The principle of combination is simple: take into account income and expenses in the taxation system to which they belong.

We described the rules of combination in detail in the article “Combining the simplified tax system with a patent”

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Simplification limit for 2021

Next year, it will become easier for many to stay on the simplified tax system - the income limit under the simplified tax system in 2021 will increase for all taxpayers from 60 to 120 million rubles. As in the case of the “transitional” limit, no coefficients will be applied to this amount until 2021, that is, in fact, the amount of allowable “simplified” income compared to 2021 will not double, but only by 40.260 million rubles ( 120,000,000 – 79,740,000).

You can focus on the new threshold of 120 million rubles, starting from January 1, 2021; in 2021, the income limit of the simplified tax system remains the same - 60 million rubles, multiplied by the deflator coefficient.

Example

The simplified organization Aktiv LLC provides transport services. In 2021, she received income in the amount of 79,500,000 rubles.

The maximum amount of revenue that can be earned from simplified taxation in 2021 is 79,740,000 rubles (60,000,000 rubles multiplied by a deflator coefficient of 1.329). In our case, Aktiv LLC fits into the limit and can continue to operate under a simplified regime in 2021.

Let’s assume that income from the “simplified” activities of “Aktiva” will increase next year and amount to 125,000,000 rubles. The “income” limit of the simplified tax system for 2021 is set at 120,000,000 rubles. No coefficients or indices are applied to this amount. This means that Aktiv LLC will exceed the maximum permissible level of revenue for further application of the simplified tax system and will have to switch to the general taxation system.

If the income limit under the simplified tax system is exceeded: algorithm of actions in 2021

The income limit under the simplified tax system in 2021 in the process of conducting the company’s activities may exceed the limit established by law. If such a situation occurs in the current reporting period, the company must switch from the “simplified” regime to the general regime for paying tax obligations. This means that at the moment when the income was exceeded and recorded in the reporting documentation, the transition to the general system should take place (in the same quarter). For this to happen, the following procedure will be required:

1. Calculate tax liabilities to the state budget using the simplified system for the period when the company operated under the simplified tax system.
2. Fill out a simplified tax return and submit it to the territorial office of the Federal Tax Service by the 25th day of the month in which the income limit for the simplified tax system was exceeded in 2016-2017.
3. After fulfilling your obligations under the simplified tax system, you should write a corresponding application and switch to the general regime for calculating tax payments to the budget. It should be remembered that from this moment on, payments to the Federal Tax Service will need to be paid not in a single payment, but separately for profit, real estate of the company and VAT.
4. Reporting documentation must now be maintained in accordance with the general taxation system.
5. The procedure for paying tax payments will be the same as if the enterprise was newly created.

How to meet the income limit

If, at the end of the reporting (tax) period, the income of the “simplified” person exceeds a certain limit, he will lose the right to apply the simplified tax system. Until January 1, 2021, the income limit for the reporting (tax) period, if exceeded, the “simplified” person lost the right to the simplified tax system, was indexed by a deflator coefficient established for the same year. Until 2021, the amount of income limiting the right to use the simplified tax system was 60,000,000 rubles (clause 4 of article 346.13 of the Tax Code of the Russian Federation). Since the value of the deflator coefficient for 2021 was equal to 1.329, the threshold value of income for working on the simplified tax system in 2016 was 79,740,000 rubles (60 million rubles × 1.329).

Note that the value of the deflator coefficient is the same both for the transition to the simplified tax system and for remaining in this special regime. Federal Law No. 401-FZ of November 30, 2021 has raised the income “bars” both for those wishing to switch to the simplified tax system and for those who are already using this special regime. Thus, organizations already using the simplified tax system were allowed to have an income of up to 150 million rubles, without fear of losing the right to “simplified” activities.

note

Income restrictions for the purpose of further application of the simplified tax system are established not only for companies, but also for individual entrepreneurs (letter of the Ministry of Finance of Russia dated March 1, 2013 No. 03-11-09/6114).

For comparison: in order to switch to the “simplified” system, the criterion for the amount of income is established only for organizations. It doesn't matter to entrepreneurs.

Thus, until January 1, 2021, the income limit for applying the simplified tax system was calculated using a deflator coefficient, but from January 1, 2021, this rule was suspended until January 1, 2021. 150 million rubles is the final limit for applying the simplified tax system, effective from 2021. It does not need to be multiplied by the deflator coefficient.

Read also “Who can and who cannot apply the simplified tax system”