Minimum tax under the simplified tax system: how to calculate and how to pay

In our publication today, we propose to consider the situation when expenses on the simplified tax system exceed income. Unfortunately, this situation is not uncommon in small businesses.

Let us remind you that there are two types of special taxation regime - simplified taxation system:

1. simplified tax system income 6%; 2. STS income minus expenses 15%.

With the first type of taxation, it does not matter whether expenses exceed income, since the entrepreneur accrues and pays only 6% of his income. In the second case, accounting for expenses is necessary, since the entrepreneur pays tax on the difference between his income and expenses.

In this case, advance payments of accrued taxes are paid based on the results of the quarter, half year, nine months and year. If expenses exceed income under the simplified tax system of 15%, then the entrepreneur does not pay any tax during the year. At the end of the year, he will have to pay 1% of his income for the year, that is, from all amounts received at the cash desk or to a current account.

Let me give you an example:

For the year, the individual entrepreneur M.I. Kroshkin, working on the simplified tax system of 15%, had a total income for the year of 2,650,000 rubles, expenses amounted to 2,890,000 rubles. That is, expenses exceeded income. It would be logical to assume that at the end of the year, IP Kroshkin M.I. does not have to pay tax to the simplified tax system.

However, in this situation there is a need to apply a minimum tax of the simplified tax system, amounting to 1% of total income. That is, Kroshkin M.I. will pay 26,500 rubles.

A situation may arise in which, based on the results of a quarter or half a year, income exceeded expenses, which means that the entrepreneur had to pay in advance based on the results of the quarter and half a year. At the end of the year, this paid amount will need to be subtracted from the calculations obtained by recalculating the entire annual income multiplied by 1%. That is, payments for the year, taking into account advance payments made for the quarter and half-year, will amount to 1% of income.

What is the difference between the income limit of the simplified tax system and revenue under the simplified tax system?

At the end of the tax period, companies calculate taxes using the simplified taxation system. In St. Petersburg, the simplified tax system is 6% for “income” and 7% for the object of taxation “income minus expenses.” Sometimes confusion arises in determining the income on which tax is taken and the income according to which the revenue limit is calculated.

Tax base for calculating the simplified tax system

- determined in accordance with Art. 346.15, 346.18 of the Tax Code, taking into account the object of taxation. If the object is income, then the tax is calculated on all income received into the current account. The object of taxation is “income minus expenses” - the calculation takes into account income reduced by the amount of expenses.

Calculation of the income limit of the simplified tax system

- all income received by the organization to the current account, to the cash desk, interest on loans, non-operating income is taken into account, in accordance with Article 346.15 and subparagraphs 1 and 3 of paragraph 1 of Article 346.25. These incomes for the year should not exceed 150 million rubles.

Example:

Kroshkin M.I. in the first quarter he had accrued tax (income-expense X 15% = 3,600 rubles, he paid it in advance. At the end of the six months he also had accrued tax (income-expense) X 15% = 9,500 rubles. But the results of the year were disappointing, and his expenses exceeded his income.

In this case, 1% of the total annual income is taken 26,500.00 - 3,600 (advance payment for the first quarter) - 9,500.00 (advance payment for the half-year) = 13,400.00. We received the amount of the minimum tax that must be paid at the end of the year.

Clauses 6 and 7 of Article 346.18 of the Tax Code of the Russian Federation allow you to take into account the difference between the simplified and minimum tax for the previous year. The difference between the simplified and minimum tax, which was calculated and paid at the end of 2021, can be included in 2020 expenses.

Documents that confirm the size of the loss and the amount by which the tax base will be reduced for each tax period must be kept during the entire period of reducing your tax base for the loss (paragraph 7, clause 7, article 346.18 of the Tax Code of the Russian Federation), and then for another four years after the loss has been written off. The loss can be taken into account within 10 years following the year in which it occurred (paragraph 2, paragraph 7, article 346.18 of the Tax Code of the Russian Federation).

Be careful when determining income and expenses, since not all income and expenses are reflected in tax accounting, but only those that meet the criteria for recognizing income and expenses under the simplified tax system listed in Art. 346.15-346.17 Tax Code of the Russian Federation.

When you transfer the final tax amount for the year, please note that the budget classification codes for advance payments and the minimum tax of 1% in 2021 are the same: 182 1 0500 110

Loss overview

Enterprises divide losses into two types. Accounting - the calculation takes into account all revenue and all costs; tax - taking into account those incomes and costs that simplifiers recognize under the Tax Code of the Russian Federation.

Entrepreneurs who calculate tax based on income pay it in any case, since tax accounting costs do not affect tax accounting. For those who pay tax on income less expenses, the option of taking a loss is possible.

If in any of the interim billing periods expenses are higher than profits, no advance payment is made. If you make a loss at the end of the year, you will have to pay tax. It is called the minimum and is calculated as 1% of income for the year.

Loss from previous years can be used to reduce the tax base in the current or future periods. The amount of the loss reduces the amount of income. Last year's losses do not affect the calculation of advance payments. They can only be applied at the end of the year.

You can reduce your income for the year by the amount of the loss of the previous reporting period if the latter was based on the simplified tax system “income minutes expenses”. Otherwise, such actions are not permitted.

The loss received in a given year can be used to reduce the tax base over the next ten years. If the period has expired, the loss cannot be counted.

To verify the correctness of the procedure for filling out the report, you should compare the completed document and a visual example of filling out a declaration under the simplified tax system for 2021. Read about changes to the simplified tax system for income in 2021 here.

When writing off losses for a given year, all papers confirming the legality of such actions must be kept for the next four years. They may be requested by tax authorities during an audit.

Information on loss amounts for all tax periods must be available. Organize documents and files and store them in separate folders.

How to offset advance payments with the minimum tax simplified tax system?

During the year, an entrepreneur using the simplified tax system is obliged to calculate and pay advance payments to the simplified tax system to the Federal Tax Service. There are situations when, after summing up the work for the year, it turns out that despite the fact that in the first three months, six months, nine months advance payments were accrued and paid for the individual entrepreneur, at the end of the year it turned out that expenses exceeded income. It turns out that you need to pay a minimum payment. But advance payments have already been transferred to the budget.

What to do in this case? Don't worry, in this case the advance payments will go towards reducing the minimum tax. But this issue will not be resolved automatically. According to clause 4 of Article 78 of the Tax Code of the Russian Federation, an entrepreneur must submit to the Federal Tax Service at the place of registration an application for crediting advance payments in favor of the minimum tax of the simplified tax system. The application must be submitted no later than 10 days before the deadline for tax payment at the end of the year.

If the result of the previous year’s work was a loss, this does not mean that there is no need to pay advance payments, because losses are taken into account only at the end of the calendar year. In this case, you can only take into account the loss that was received during the period of application of the simplified procedure with the object “income minus expenses”. After all, a simplifier can change his object of taxation annually (clause 2 of Article 346.14 of the Tax Code of the Russian Federation).

The article has been edited in accordance with current legislation 12/17/2019

Situations when expenses exceed income under the simplified tax system

There are two types of “simplified” taxation: 6% on income and 15% on revenue reduced by costs. In the first case, expenses do not play a role in taxation. In the second case, the tax is paid on net profit; if there is no profit in the interim periods, then there is no need to transfer advances.

Despite the losses, at the end of the year, a simplifier in the 15% system must pay a minimum contribution equal to 1% of the turnover for the year for all types of activities.

If any tax period has been worked out “in plus” and an advance has been paid, but at the end of the year there is a loss. Then the minimum tax is paid, adjusted to the amount of the prepayment.

Example. The company operates on a simplified basis with 15% taxation. For the first quarter, she made a profit of 50 thousand rubles. and paid an advance of 7,500 rubles. The remaining intermediate periods and the year as a whole were worked at a loss. The total annual turnover amounted to 280 thousand rubles.

The company calculated the minimum tax: 780,000 * 1% = 7,800 rubles. Taking into account the advance, the accountant transferred 300 rubles to the budget.

To offset the advance payment against the minimum tax, you need to fill out a simplified declaration. It contains the corresponding columns. The minimum tax is paid within the same time frame as the single tax: by the end of March by companies and by the end of April by entrepreneurs.

This might also be useful:

• How to work on the simplified tax system income 6%
• Pros and cons of the simplified tax system and UTII in comparison
• Minimum tax under the simplified tax system in 2021

• VAT accounting for individual entrepreneurs using the simplified tax system in 2021
• Individual entrepreneur reporting on the simplified tax system without employees
• simplified tax system for individual entrepreneurs in 2021

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New rules for calculating tax under the simplified tax system for organizations from 2021: what will change?

Starting next year, simplified tax rates for some organizations will change. Read on to see what changes await the simplifiers.

Starting from the new year, the Russian Government decided to introduce a relaxation for those simplified workers who slightly exceed the limits in terms of number or profitability.

Tax rates for those who go beyond the permitted limits under the simplified tax system will be:

• 6% or 8% for taxpayers using the simplified tax system with the object “income”;
• 15% or 20% for taxpayers using the simplified tax system with the object “income minus expenses”.

In a normal situation, standard rates of 6% and 15% are applied by simplifiers, provided that the amount of income does not exceed 150 million rubles and the number of personnel is 100 people.

Increased tax rates of 8% and 20% are applied by taxpayers of the simplified tax system, provided that their income is from 150 to 200 million rubles or the number of staff is from 101 to 130 people inclusive

.

If the simplifier has exceeded the limits of 200 million rubles in income or 130 people, then from the quarter of exceeding the limits the taxpayer “ flies ” from the special regime and pays taxes according to the general taxation system.

Currently, if a simplifier has exceeded the limits, then in the quarter when this excess occurred, he automatically switches to OSN

.

For clarity, we present the new conditions for applying the simplified tax system in the table.

It is worth noting that the income limit will continue to increase annually by the deflator coefficient

.

The increased tax rate will not need to be recalculated from the beginning of the year; the company will pay the increased rate only for those quarters in which the amount of income or the number of employees exceeded the limit

.

It is better to consider this situation with an example.

Romashka LLC applies a simplified taxation system with the object “income” from January 1, 2021. The number of employees at the enterprise, the amount of income and advance payments paid* are presented in the table below.

* calculation is made without reducing advance payments by the amount of paid insurance premiums

The total income for 9 months amounted to 122 million rubles (43 million rubles + 37 million rubles + 42 million rubles), which is less than the established limit of 150 million rubles. Consequently, the company Romashka LLC calculated and paid advance payments at a rate of 6%.

The amount of income for the year amounted to 173 million rubles (122 million rubles + 51 million rubles). Romashka LLC for the fourth quarter of 2021 must pay an advance payment in the amount of 4.08 million rubles ((122 million rubles * 6%) + ((173 million rubles - 122 million rubles) * 8%) – 2.58 million rubles – 2.22 million rubles – 2.52 million rubles).

If in the fourth quarter of 2021 the income of Romashka LLC were 79 million rubles, then the total amount of income for 2021 would be 201 million rubles

. In this case, Romashka LLC would lose the right to apply the simplified tax system in the fourth quarter.

If a company that has exceeded the headcount limit of 100 people

, will reduce the number of employees, then the company will again be able to apply a rate of 6% or 15%, depending on the chosen taxation regime. Let's also consider this situation using an example.

LLC "Romashka" applies the simplified tax system with the object "income" from January 1, 2021. The amount of income did not exceed 150 million rubles. The number of employees is presented in the table.

The average headcount per enterprise in the first quarter of 2021 was 98 people ((98 people + 99 people + 98 people) / 3 months). The tax rate under the simplified tax system in the first quarter will be 6%.

The average headcount per enterprise in the second quarter of 2021 was 101 people ((98 people + 99 people + 98 people + 101 people + 105 people + 104 people) / 6 months). The tax rate under the simplified tax system in the second quarter will be 8%.

The average headcount for the enterprise in the third quarter of 2021 was 99 people ((98 people +99 people +98 people + 101 people + 105 people + 104 people + 98 people + 95 people + 93 people) / 9months). The tax rate under the simplified tax system in the third quarter will be 6%.

Since the simplified tax system recognizes the tax period as a calendar year, every year all amounts of income and the number of employees are “cancelled.”

Therefore, from the next calendar year, standard rates apply until the company exceeds the headcount or profitability limits.

Comments

Sergey 04/13/2016 at 10:21 am # Reply
What to do?

Registered an individual entrepreneur on 01/28/16, bought a vending machine (snack) 160 thousand rubles + 10 thousand delivery. Paid rent 2.5 thousand rubles. I bought 30 thousand products. Installed it on 03/04/16. After working for the month of March, on 03/31/16 I made a profit of 12 thousand rubles. 202,500 rubles expenses, 12 thousand income. How to fill out a declaration??? or submit a “zero return?”

Natalia 07/08/2016 at 08:41 # Reply

Sergey, the simplified taxation system declaration is submitted once a year, based on the results of the previous year, until April 30 of the next year. Those. You will submit a declaration in 2021, for 2021. If there is income, then this is no longer a zero declaration, but a regular one. Don’t forget to pay your contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund. They are paid regardless of whether you have a profit or not.

What is the simplified tax system “Income minus expenses”

The tax base with this simplified version is determined as the difference between income and expenses. This is the main difference from the simplified tax system “Income”, in which costs do not affect the amount of tax.

Tax rate - up to 15%

The basic tax rate of the simplified tax system “Income minus expenses is 15%. Therefore, this option is often called simply “STS 15%”. However, regional authorities have the right to reduce the rate for this type of simplified payment to 5%, and in Crimea and Sevastopol - to 3%.

The tax rate that is currently in force in your region can be found at the end of the page about the simplified tax system on the Federal Tax Service website.

Tax calculation - what income and expenses to take into account

The simplified “Income minus expenses” method of calculation is similar to the income tax under the general tax system. However, there are also significant features:

1. Income and expenses are accounted for “on payment”, that is, upon receipt or payment of money.
2. The list of costs that can be recognized as expenses is closed. If an expense is not specified in Article 346.16 of the Tax Code of the Russian Federation, then it cannot be deducted from the taxable base, even if it is economically justified. Similarly, the tax office may refuse to account for expenses that are not supported by documents.
3. All earnings from a business are considered income. This is usually revenue from the sale of goods or services. But there are also incomes that are not related to business and are still taken into account in the calculations - non-operating income (Article 250 of the Tax Code of the Russian Federation).
4. In any case, the tax should not be less than 1% of revenue. If the calculation “on a general basis” resulted in a smaller amount, then you need to pay a minimum 1% tax.

Reporting - declaration, KUDiR and accounting

On the simplified tax system “Income minus expenses” there is one tax report required for everyone - the annual tax return. It is submitted once: organizations until March 31, and individual entrepreneurs - until April 30. The declaration form was approved by order of the Federal Tax Service of the Russian Federation dated February 26, 2016 No. ММВ-7-3/ [email protected]

Entrepreneurs are exempt from accounting reports, but organizations using the simplified tax system are required to submit them. If a company fits the restrictions of the simplified tax system, it belongs to small enterprises, which means it receives the right to conduct accounting in a simplified form:

• use an abbreviated chart of accounts;
• use a simplified form of accounting;
• do not submit statements of cash flows and changes in capital.

The organization's accounting reports are submitted to the tax office by March 31.

If a simplifier has employees, then they also need to submit regular reports: information on the number of employees, calculations of insurance premiums, personal income tax, SZV-M, SZV-STAZH, 4-FSS and others.

You also need to keep a book of income and expenses (KUDiR) on the simplified tax system. She does not need to submit a tax return until she sends an official request.

How to take into account the difference between real and minimum tax

If the minimum tax turns out to be more than the real one, then next year you will be able to include the difference between them in expenses (clause 6 of Article 346.18 of the Tax Code of the Russian Federation).

But it is impossible to take this difference into account when paying quarterly advance payments for the single tax. This can only be done when calculating the single tax for the year. Therefore, last year's difference is shown in the annual return for the next tax period.

simplified tax system at the end of the year

Read more…

The minimum tax will have to be paid even if the company suffered losses (that is, its expenses exceeded its income). In this case, the amount of real tax will be zero. Therefore, the difference between the minimum and real tax will be equal to the amount of the minimum tax. This amount will need to be taken into account in expenses when determining the tax base for the next tax period, that is, in the declaration under the simplified tax system at the end of the year.

What taxes can you avoid paying with simplification?

Tax accounting under the simplified tax system “Income minus expenses” differs from the general system. Simplified business is exempt from:

1. Income tax (for LLCs at “USN 15%”) or personal income tax (for individual entrepreneurs).
2. Property tax, with the exception of objects that are taxed at cadastral value.
3. VAT, except for imports and performance of duties as a tax agent.

Simplified people pay other taxes on a general basis if they have a taxable base. For example, land owners pay land tax, and vehicle owners pay transport tax.

Benefits on insurance premiums in 2021 can only be used by non-profit and charitable organizations using the simplified tax system. They are exempt from contributions to the Social Insurance Fund and the Federal Compulsory Medical Insurance Fund.

All other simplifiers must pay mandatory insurance payments on a general basis.

Minimum tax and loss carryover

The difference that is formed between the minimum tax and the tax calculated in the usual manner does not disappear.

By this difference, you can increase the amount of losses for the next year, which are carried forward to the future (clause 6 of Article 346.18 of the Tax Code of the Russian Federation).

This situation arises if, based on the results of work next year, the company again receives a loss.

Example. How to take into account the minimum tax when transferring a loss from last year to the current year In the past year, Passive LLC worked under a simplified taxation system, choosing the base for a single tax “income minus expenses.” For this year, the company's taxable income amounted to 900,000 rubles, and expenses - 1,500,000 rubles. Thus, at the end of the past year, the company received a loss of 600,000 rubles. (1,500,000 - 900,000). The accountant calculated the minimum tax for the past year: 900,000 rubles. × 1% = 9,000 rubles. Let's assume that in the reporting year, the income of Passiv LLC amounted to 1,300,000 rubles, and expenses - 800,000 rubles. The difference between income and expenses is 500,000 rubles. (1,300,000 - 800,000). The single tax will be 75,000 rubles. (RUB 500,000 × 15%). But Passive LLC decided to take into account the loss of the past year at the expense of the profit received in the reporting year. The company has the right to transfer to the current tax period the amount of the loss received in the previous tax period. Therefore, for the reporting year, the entire amount of profit goes to cover the loss for the past year. The remaining amount of loss is 100,000 rubles. (600,000 rubles - 500,000 rubles) - transferred to the following periods. At the end of the reporting year, the company will pay a minimum tax of 13,000 rubles. (RUB 1,300,000 × 1%).

The loss received during the year can be carried forward to the next year. The remaining part of the loss can be transferred to other years, but for no more than nine years (Clause 7, Article 346.18 of the Tax Code of the Russian Federation).

If the “simpler” suffered losses in more than one period, then they are carried forward to the future in the same sequence in which they were incurred by the payer (letter of the Ministry of Finance of the Russian Federation dated May 27, 2021 No. 03-11-11/38174).

Calculation of the tax base under the simplified tax system

Read more…

Let us remind you that the “simplified” person is obliged to keep documents confirming the amount of loss incurred and the amount by which the tax base was reduced for each tax period. The storage period for these documents is the period for reducing the tax base by the amount of the loss plus four years after the end of the year in which the loss was finally written off (clause 8, clause 1, article 23, paragraph 7, clause 7, article 346.18 of the Tax Code of the Russian Federation).

How to pay tax under the simplified tax system “Income minus expenses”

The tax period under the simplified tax system is a calendar year. Organizations must pay their budget by March 31 of the following year. The simplified procedure for individual entrepreneurs “Income minus expenses” provides for payment of tax by April 30.

But, in addition to the final payment, all businessmen must make quarterly advance payments throughout the year. The deadline for their payment is the 25th day of the month following the reporting period.

The advance payment for each period is calculated in the same way as the amount for the year as a whole. The difference between revenue and costs should be multiplied by the tax rate. The difference is determined by the cumulative total from the beginning of the year. If we are talking about an advance for 6, 9 months or an annual amount, then you need to subtract the previously listed advances.

The minimum tax is not paid during the year. If at the end of the interim period the amount payable is less than 1% of revenue, then it should be transferred. If a loss is incurred during the reporting period, then there is no need to pay an advance.

Example. The businessman’s income and expenses for 2021 by quarter are shown in the table. For the calculation we will use the standard rate of 15%.

thousand roubles.

We will also summarize the calculation of advances and tax amounts in a table.

*cumulative total since the beginning of the year