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”.

Entrepreneur's transition to a simplified fee payment system

It must be remembered that the simplified taxation system 2018 is available to individual entrepreneurs if he complies with the following rules:

• the staff employs no more than 100 people (officially registered, within 12 months);
• income received from doing business for a period of 9 months (3 quarters) did not exceed 112 million rubles (confirmed by filing a declaration);
• the type of activity of the company is permitted by the existing rules for registering the simplified tax system;
• a written application from the entrepreneur (the main person in the company) was submitted within the established time frame;
• The transition to easier payment and accounting will occur from the beginning of the new tax period.

In other cases, the transition will not be possible. You cannot choose the simplified tax system when the individual entrepreneur is on the unified agricultural tax system.

Tax benefits for individual entrepreneurs

Types of activities for the simplified tax system: who is prohibited from using this taxation scheme

The simplified taxation system 2021 is not allowed for registration when an individual entrepreneur has chosen the following types of activities:

• private pension fund;
• banking activities;
• microfinance company;
• insurance;
• investments;
• pawnshops;
• rare natural minerals (mining, selling);
• goods with excise taxes (production);
• advocacy (private practice);
• notarial activities (private);
• organization of gambling.

You cannot apply for a simplified form if the business is a budgetary, government-owned institution or a company registered in another country. Persons who have signed a formal agreement on the division of goods or products also cannot take advantage of the benefits provided by the 2018 tax system.

When to switch to the simplified tax system: time and features of the process

The following questions should be clear to an entrepreneur: simplified individual entrepreneur tax 2021, how much to pay and when you can choose a similar system. In the first case, much depends on the presence or absence of subordinates and financial turnover. The transition is possible subject to the following rules:

• the beginning of a new tax period (you won’t be able to go through the tax system for the previous year or quarter);
• a corresponding application was submitted in writing during the period (calendar months) 10/1–12/31 of the current year (with the exception of opening an individual entrepreneur);

Returning to the simplified system is possible, but for this the businessman will have to wait 1 year (time is counted from the moment of leaving).

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%.

An example of calculating the simplified tax system for income 6%

I will give an example of calculating advance payments on the simplified tax system for income of 6% without employees:

Advance payment for the first quarter

1. Let's say your income for January, February, March, i.e. for the 1st quarter of the current year amounted to 500,000 rubles. 500,000×6% = 30,000 rubles.

2. Determine the amount of the deduction (these are your contributions that you should have paid during the first quarter of 2021):

• for compulsory pension insurance 8112 rubles;
• for compulsory medical insurance 2106.5 rubles.

Your total deduction for the 1st quarter of 2021 will be 10,218.50 rubles.

3. 30,000 - 10,218.5 = 19,781.5 rubles. This is the amount called the advance payment for the first quarter of 2021.

Advance payment for six months

A. Sum up the income for the first quarter (500,000) with the income for the second quarter, let’s say it is equal to 400,000 rubles. 500,000 + 400,000 = 900,000×6% = 54,000 rubles.

B. Determine the amount of the deduction (these are payments to the funds for two quarters - 10,218.5 x 2 = 20,437 plus an advance payment for the first quarter of 20,940.50 rubles). This results in a deduction of 39,059.50 rubles.

C. 54,000 - 41,377.5 = 12,622.5 rubles - the amount of the advance payment to the tax office for the first half of the year.

The advance payment for nine months and for a year is calculated in the same way. Just remember to pay your pension and health insurance contributions quarterly, and then you will have the right to deduct these amounts from your advance quarterly tax payments to the Federal Tax Service.

Let us explain the meaning of the numbers 2,106.5 rubles and 8,112 rubles indicated in paragraph 2 of the Example. In 2021, fixed contributions payable for pension and health insurance are determined by specific figures, unlike previous years, when contributions were calculated based on the minimum wage.

In 2021, the following amount of fixed contributions of individual entrepreneurs for themselves is determined:

• the amount for pension insurance is 32,448 rubles (with an annual income of less than 300,000 rubles);
• for medical insurance – 8426 rubles.

If we divide these amounts into equal parts for equal payment quarterly, we get 2106.5 rubles and 8112 rubles. Although, at your discretion, you can pay contributions not necessarily in equal installments.

In 2021, the amounts of fixed contributions for individual entrepreneurs for themselves, with an income of less than 300,000 rubles, remained unchanged compared to last year 2021:

• for pension insurance – 32,448 rubles;
• for medical insurance – 8,426 rubles.

With an income of over 300,000 rubles in 2021 and 2021, the individual entrepreneur must, in addition to fixed contributions, transfer to the Federal Tax Service 1% of the difference between annual income and 300,000 rubles. The deadline for transferring the additional payment for pension insurance for 2021 and 2021 is until July 1, 2021 and until July 1, 2022, respectively.

If you have employees, then the contributions paid for them also go towards reducing the simplified tax system payments, but according to a different rule. For example:

1. Income for the 1st quarter amounted to 500,000 rubles. The tax, based on the tax rate of 6%, will be 500,000 x 6% = 30,000 rubles.
2. You paid fixed contributions for yourself during the 1st quarter in the amount of 8112.00 + 2106.5 rubles, as well as contributions for employees in the amount of 15,000 rubles.
3. Despite the fact that the total amount of contributions was 8112.0 + 2106.5 + 15,000 = 25,218.5 rubles, you can only reduce the tax by 50% of the calculated tax amount: 30,000 x 50% = 15,000 rubles.
4. The advance payment for the 1st quarter for individual entrepreneurs with hired employees will be 15,000 rubles.
5. Unlike an individual entrepreneur without employees, an individual entrepreneur with employees can reduce the simplified tax system tax by no more than 50% of the calculated tax amount (clause 3.1, article 346.21 of the Tax Code of the Russian Federation).

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.

How to fill out the table for calculation?

After you have chosen the percentage for the simplified tax system (6% or 15%), you need to fill out the table for calculation. You cannot choose the taxation itself - this calculator is intended for simplified people, but it is the same for the simplified tax system “income” and “income minus expenses”.

• Step 1. Choose who you are: an individual entrepreneur with employees, an individual entrepreneur without employees, or an LLC with a simplified structure. Calculations depend on this.
• Step 2. Select the correct billing period: quarter, six months, 9 months or a year.
• Step 3. If you are a trade tax payer at the time of settlement, check the box.
• Step 4. If you chose “Income”, you need to enter the income itself (this is not profit!), paid insurance premiums for individual entrepreneurs and for employees, as well as amounts for sick leave at the expense of the employer. Remember that contributions are paid in the tax period for which you calculate the tax. For example, to reduce tax for the first half of 2017, contributions for the first half of the year must be paid to the budget by June 30, 2017 inclusive.

If you selected “Income minus expenses”, you need to enter the amount of income and the amount of expenses incurred.

In both cases, the calculator will calculate how much you need to pay as tax under the simplified tax system.

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

Accounting and reporting

Tax reporting must take time into account. If there is a staff of employees, then documents are submitted before April 20 (annual), for 2 personal income taxes - quarterly, before the 30th of the next month. Employees must be taken into account - their number is indicated in documents submitted before January 20 (once a year). A simplified taxation system is not provided for LLCs with large turnover.

Is it possible to pay personal income tax before salary payments?

Thus, reducing the tax burden in the financial part is a very real and legal action.

What payments does an individual entrepreneur make using the simplified tax system 6%

It is worth distinguishing between entrepreneurs who operate independently and those who hire employees. A simplified tax system for individual entrepreneurs without employees means that you will pay:

• tax of 6% of annual income (or at a lower rate established at the regional level);
• contributions to compulsory pension insurance. In 2021, their amount is 32,448 rubles (from income up to 300,000 rubles). Contributions are paid until December 31 of the current calendar year. You can pay the entire amount in one payment or split payments: quarterly or monthly;
• contributions for compulsory health insurance. The entrepreneur is also obliged to pay them before December 31 of the current year (in one payment, quarterly or monthly) in the amount of 8,426 rubles. Thus, the total amount of contributions of an individual entrepreneur for himself is 40,874 rubles.
• if the annual income exceeds 300,000 rubles, then an additional 1% is paid on income over 300,000 rubles, but not more than 259,584 rubles. For example, if an entrepreneur’s income was 900,000 rubles, then he will pay an additional 6,000. This payment to individual entrepreneurs on a simplified basis is paid until July 1 of the next year.

The simplified taxation system for individual entrepreneurs with employees is different in that insurance premiums for employees are added to the listed payments, which are paid by the 15th of each month.

If there was no income, do you have to pay taxes under the simplified tax system of 6%?

Let's say an individual entrepreneur registered in December and for the 4th quarter he had no income from doing business. The question arises: if your income is zero, do you have to pay taxes under the simplified tax system of 6%?

There is no need to pay tax on income, since there is no taxable base as such. But individual entrepreneurs are required to pay contributions “for themselves” for pension and health insurance. You can pay in installments throughout the year or in one payment. Deadline: until the end of the current reporting year.

We recommend reading: Taxes and contributions of individual entrepreneurs: types, terms and amounts of payments to the tax office.

Individual entrepreneurs without employees: what kind of reporting to submit?

Individual entrepreneur on OSNO what kind of reports does he submit without employees and with them?

Beginning businessmen are interested in what taxes and mandatory payments are provided for individual entrepreneurs (2019). Simplified housing without employees does not have a high tax burden. At the same time, federal legislation obliges individual entrepreneurs using the simplified tax system to pay insurance premiums for themselves, in addition to the 6.00% tax:

• FFOMS. The amount of the insurance premium for compulsory medical insurance is fixed at 6,884 rubles. for 2021 (2020 - 8426 rubles *.);
• Pension Fund of the Russian Federation. The amount of the insurance premium can be fixed, provided that the total income of the individual entrepreneur for the reporting year does not exceed 300 thousand rubles. In this case, the entrepreneur will have to pay 26,354 rubles for 2019. (2020 - RUB 32,448). If the amount of total income exceeds the established limit, then the business entity must add another 1.00% of the resulting surplus to the fixed amount of the fee.

Note! The maximum amount of the insurance contribution to the Pension Fund of the Russian Federation cannot exceed a fixed amount of eight times (RUB 212,360).

Individual entrepreneur: what taxes must be paid, 2021 without employees

The business entity must pay all accrued insurance premiums to the budget before the end of the reporting period (calendar year) no later than December 31. If the total income of an individual entrepreneur exceeds the level of 300 thousand rubles, then he must pay the insurance fee on the excess amount (1.00%) to the budget at the end of the reporting period no later than 01.07.

Important! The amount of the insurance premium, which is calculated from an amount of income not exceeding 300 thousand rubles, can be paid in advance or in one payment.

In the KBK classifier, the simplified mode of 6.00% is assigned the code “18210501011011000110”, which is indicated when filling out reports and payments. Compulsory medical insurance "182 102 02103 08 1013 160", PF "182 10210 160".

Submitting reports

The Tax Code of the Russian Federation specifies what kind of reporting an individual entrepreneur without employees needs to submit. At the end of the reporting period, they should submit a declaration to the local Federal Tax Service no later than April 30. This can be done by visiting the tax office in person, via the Internet, or by mail.

Payment period

The individual entrepreneur pays the tax for 2021 under a simplified regime until April 30, 2021. Previously, he submits to the Federal Tax Service the individual entrepreneur's reporting on the simplified tax system without employees for 2021.

What is the income of an individual entrepreneur under the simplified tax system of 6%

Income for an individual entrepreneur will be all funds received to the current account or cash register of the individual entrepreneur, that is, paid. When conducting business as an individual entrepreneur on the simplified tax system, there can be income not only in monetary terms, but also in kind. For example, a buyer can pay an individual entrepreneur with property.

Confirmation of income in monetary terms is a bank statement or a cash receipt order. In the book of income and expenses, you need to indicate the details of these documents. When transferring property - details of the transfer act. Since the system only takes into account income, the individual entrepreneur’s expenses are not taken into account or reflected.

We recommend reading: Where is it profitable to open a current account for an individual entrepreneur: comparison of tariffs for cash settlement services and reviews.