Have you received losses under the simplified tax system? Pay the minimum tax!

Current period loss

In a situation where, at the end of the year, an enterprise’s expenses exceed income, or there is no income at all, a loss occurs. If the loss occurred in the reporting period (quarter, half-year, 9 months), then there is no need to transfer an advance payment for this period. But at the end of the year the situation is somewhat different. If the organization had no income at all for the entire reporting year, then no tax is transferred. And if there was income, even if it was less than expenses, then a tax in the amount of 1% of income will have to be transferred to the budget. This is the minimum tax according to the simplified tax system. Also read the article: ⇒ “Expenses under the simplified tax system in 2021.”

Features of loss accounting

Losses can be taken into account in tax calculations only at the end of the year. This cannot be done when calculating an advance payment based on the results of a quarter, half a year or 9 months. This is one of the features of loss transfer for. Organizations using the general regime can do this without waiting for the end of the tax period. They have the right to do this already based on the results of the first quarter. When calculating the amount of the annual payment, organizations using the simplified tax system have the right to take into account the loss of previous years. A loss can be carried forward for no more than 10 years. Thus, the loss received in 2021 can be taken into account until 2027. But if the loss is not written off in full by 2027, it will no longer be possible to write it off and it will remain outstanding.

One of the conditions for reducing the tax base by the amount of a loss is its documentary confirmation.

You can confirm your loss: (click to expand)

• primary documents (invoice, act, etc.);
• copies of tax returns;
• books of income and expenses.

Such documents must be stored for no less than the period during which they can be used for transfer. That is, even if the period for storing documents according to the law allows them to be destroyed or transferred to the archive, they will have to be preserved for the entire period of transferring the loss. In addition, these documents are additionally stored for another 4 years. The Ministry of Finance clarifies this in letter No. 03-03-06/1/278 dated May 25, 2012. Thus, the total storage period of the document confirming the loss is 14 years.

The loss can be taken into account as a whole amount in the current period, or the balance can be transferred to any permitted year (within 10 years). Moreover, losses received in several periods are taken into account in the order in which they were received. That is, the loss that occurred earlier in time will be taken into account first.

Also read the article: ⇒ “Annual tax under the simplified tax system in 2021.”

How to rationally use the amount of loss

The right to reduce the tax base can only be used at the end of the year. Sometimes it is not profitable for a simplifier to declare the entire loss at once. It is better to break it into parts so that you can reduce the tax by a larger amount in the future. With the rational use of last year's losses, the ratio is observed when the single tax is greater than the minimum tax or equal to it:

(income – expenses – Ʃ losses from previous years) x 15% >= income x 1%.

If in the subject of the Russian Federation where the taxpayer is registered, a reduced tax rate according to the simplified tax system has been approved instead of 15%, the regional value of the rate is substituted into the inequality.

Example

Individual Entrepreneur Kuznetsov applies the simplified tax system of 15%. At the end of 2021, they received a loss in the amount of 310,000 rubles. For 2021, the entrepreneur’s revenue is 1,520,000 rubles, expenses taken into account are 1,260,000 rubles.

Here are two options for writing off losses:

1. Use of loss in the tax base amount

On page 230 of the declaration for 2021, IP Kuznetsov indicated the amount of loss for 2018 in the amount of the tax base for 2021 - 260,000 rubles.

For 2021, the result from the activities of the individual entrepreneur will be (expenses and declared losses are deducted from income):

1520000 – 1260000 – 260000 = 0 rub.

The result is zero, which means that the entrepreneur will pay the minimum tax for 2021 (1% of revenue):

1520000 x 1% = 15200 rub.

In future periods, Kuznetsov will be able to take into account the balance of the loss for 2021 - 50,000 rubles, and the minimum tax paid for 2021 - 15,200 rubles, saving 15%:

(15200 + 50000) x 15% = 9780 rub.

Result: for 2021, an individual entrepreneur will pay a minimum tax of 1% - 15,200 rubles, possible savings in the future - 9,780 rubles.

Example

Continent LLC applies the simplified tax system for income minus expenses. The income of Continent LLC for 2014 was 1,500,000 rubles, and expenses were 1,900,000 rubles. That is, for 2014, the LLC’s loss was: 1,900,000 – 1,500,000 = 400,000 rubles For 2014, the organization paid the simplified tax system in the minimum amount equal to: 1,500,000 x 1% = 15,000 rubles In 2015, the income of Continent LLC ” amounted to 1,200,000 rubles, and expenses – 1,190,000 rubles. We reduce the tax base for 2015 by the amount of tax paid to the budget for 2014, equal to 15,000 rubles. Thus, for 2015, Continent LLC again incurred a loss in the amount of 5,000 rubles: (1,200,000 – 1,190,000 – 15,000) For 2015, Continent LLC transferred the simplified tax system in the minimum amount: 1,200,000 x 1% = 12,000 rubles

In 2021, the income of Continent LLC amounted to 1,800,000 rubles, and expenses – 1,200,000 rubles. We reduce the tax base by the tax paid for 2015, equal to 12,000 rubles: 1,800,000 – 1,200,000 – 12,000 = 588,000 rubles The outstanding loss for 2021 was: 400,000 + 5,000 = 405,000 rubles Let’s calculate the tax for 20 21 year due: (588,000 – 405,000) x 15% = 27,450 rubles

An example of tax calculation under the simplified tax system “income minus expenses”

For a more clear and visual representation of the calculation of the simplified tax system of 15% payable to the budget, let’s consider an example.

Financial indicators of Soyuz LLC for 2021 were:

We calculate the amount of advance payments for the 1st quarter:

80,000 × 15% = 12,000 rub.

Next, we calculate the amount of the advance payment for the six months. To do this, we determine the advance payment indicator attributable to the tax base from the beginning of the year to the end of the six months on an accrual basis:

30,000 × 15% = 4,500 rub.

The taxpayer has the right to reduce this amount by the advance payment that was paid for the 1st quarter:

4,500 – 12,000 = –7500 rub.

That is, there is no need to transfer an advance payment to the budget for the six months, since the company suffered losses in the 2nd quarter.

How to correctly document a loss based on the results of the six months, read.

Similarly, we calculate the amount of the advance payment for 9 months:

140,000 × 15% = 21,000 rub.

We reduce the amount received by advance payments paid based on the results of previous quarters, thereby obtaining an advance payment payable for 9 months:

21,000 – 12,000 = 9,000 rubles.

To calculate the simplified tax system - income minus expenses - for the year we determine the amount of tax at a rate of 15%:

230,000 × 15% = 34,500 rub.

Then we reduce it by the amount of the listed advance payments:

34,500 – 12,000 – 9,000 = 13,500 rubles.

This amount is an additional tax payable at the end of the year.

Accounting for losses during reorganization and regime change

An important point when carrying forward a loss to a future period is the transition from one tax regime to another. For example, an organization decided to switch to a general taxation system from a simplified one, or vice versa. In this case, it is impossible to transfer a loss from one tax system to another, that is, losses received under the simplified tax system do not transfer to the general regime and vice versa. The same applies to simplifiers who decided to switch from the “income minus expenses” mode to “income”. They do not have the right to carry forward losses to the next year under the new tax regime. Since under the simplified tax system “income” losses cannot arise and the tax base cannot be reduced on them. When the organization's activities are terminated due to its reorganization, it is also impossible to carry forward losses. An organization acting as a legal successor does not have the right to take into account the losses of the acquired company during the reorganization.

Registration of losses from previous years using the simplified taxation system (STS)

Published 01/11/2015 23:46 Organizations using the simplified tax system with the taxable object “income minus expenses” must take into account certain nuances when calculating tax. They arise if, at the end of the tax period, losses have to be recognized. In such a situation, the minimum tax is calculated at one percent of income. Is it possible to take into account the amount of this tax in expenses in the next tax period, and also what to do with the amount of loss so that when filling out a declaration in 1C: Accounting 8 it is reflected correctly?

So, in accordance with paragraph 6 of Art. 346.18 of the Tax Code of the Russian Federation, the minimum tax is paid if for the tax period the amount of tax calculated in the general procedure is less than the amount of the calculated minimum tax. In this case, the taxpayer has the right in the following tax periods to include the amount of the difference between the amount of the minimum tax paid and the amount of tax calculated in the general manner as expenses when calculating the tax base, including increasing the amount of losses that can be carried forward to the future.

The procedure for transferring losses is regulated by clause 7 of Art. 346.18 of the Tax Code of the Russian Federation, which states that a taxpayer who uses as an object of taxation income reduced by the amount of expenses, has the right to reduce the tax base calculated at the end of the tax period by the amount of the loss received based on the results of previous tax periods in which the taxpayer applied the simplified taxation system and used as an object of taxation income reduced by the amount of expenses.

The taxpayer has the right to carry forward a loss to future tax periods within 10 years following the tax period in which the loss was incurred. If a taxpayer received losses in more than one tax period, such losses are carried forward to future tax periods in the order in which they were received.

It must be remembered that the loss received by the taxpayer when applying other taxation regimes is not accepted when switching to a simplified taxation system.

In order to reflect in the 1C program: Enterprise Accounting 8 (revision 3.0) the amount of the minimum tax that can be taken into account in expenses (or the difference between the amount of the minimum tax paid and the amount of tax calculated in the general manner), as well as the amount of losses that can be transferred, you must open the “Operations” tab and select the “Registration of the amount of loss of the simplified tax system” item.

We create a new document, select an organization and indicate the year for which we will generate reports (losses incurred before this year are taken into account). In the field next to the year, enter the amount of tax that can be taken into account in expenses (minimum tax or difference). And in the table we fill in the amounts of losses that have not been transferred previously, broken down by the years of their occurrence.

After posting the document, the specified amounts will automatically fall into the corresponding columns of the declaration according to the simplified tax system.

If you have any questions, you can ask them in the comments to the article.

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+1 Elena N 03/21/2017 19:30 At the close of 2015, the document “Registration of the amount of loss” for 2014 was introduced in the amount of 38,000. Income for 2015 amounted to 23,000. The write-off of part of the loss and the remainder of the loss were reflected in the KUDR. period. The declaration contains only part of the loss (in the amount of profit for 2015). At the close of 2021, the remainder of the loss is not automatically entered into either the KUDR or the declaration. Question: what document should I enter at the close of 2021 so that the remainder of the 2014 loss is included in expenses, in the KUDR and in the declaration?

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When is it better to take into account a current period loss?

Based on the fact that accounting for losses from previous years is not an obligation, but a right of the company, it is better to use it if there is an economic benefit. It is most profitable to take into account a loss if the tax received during the calculation is greater than or equal to the minimum tax for the same period, that is:

(D – R – U) x 15% > D x 1%,

Where:

D – income of the organization for the reporting period; R – expenses of the organization and the reporting period; Y – loss of the organization that arose in the previous period; 15% – simplified tax rate; 1% is the rate for calculating the minimum tax.

If the two compared values ​​are equal, or the first one is greater, the organization will receive greater benefits due to the distribution of the loss.

Reflection of loss in the declaration according to the simplified tax system

Reflection of losses of previous years in the declaration under the simplified tax system (approved by Order of the Federal Tax Service of Russia dated February 26, 2016) occurs as follows. Initially, you need to indicate the taxable income for the tax period and the amount of expenses (lines 213 and 223, section 2.2, respectively). Include the difference in the amount of expenses - the amount of the minimum tax paid minus the tax for the previous period. If the previous period was unprofitable, then this difference will be the amount of the minimum tax. If there is no loss in the current tax period (that is, income exceeds expenses), the amount of the loss of the previous period is indicated in line 230. But only if it does not exceed the tax base in the current period. The final amount of the tax base is calculated as follows: the difference between the values ​​on lines 213, 223, 230 is recorded in line 240. Thus, in the reporting year, the tax base will decrease by the amount of losses from previous periods. If in a given period expenses exceed income, then a loss is indicated in the declaration (line 253).

When losses occur

A loss is the difference that arises in cases where the taxpayer received less income than he incurred expenses. In other words, when the amount taken into account in accordance with Art. 346.16 of the Tax Code of the Russian Federation, expenses exceed revenue recognized in accordance with Art. 346.15 of the Tax Code of the Russian Federation with simplified income. When calculating payments for the single tax, the loss generated for the current year is shown in pp. 250-253 of section 2.2. declarations according to the simplified tax system.

If an annual loss is received, a company or individual entrepreneur will pay the minimum tax - 1% of the amount of income for the year (clause 6 of Article 346.18 of the Tax Code of the Russian Federation), and if desired, declare a reduction in the tax base by the amount of this loss in the following tax periods, reflecting its amount in page 230 of section 2.2 of the declaration.

Losses received before the transition to the simplified tax system under other tax regimes are not taken into account. If a simplifier changes the object of taxation to “income,” he will not be able to write off past losses until he returns to the simplified tax system “income minus expenses.”

It is impossible to reduce the tax base for losses from previous years when calculating advances under the simplified tax system - such a write-off is possible only at the end of the year.

The legislative framework

General rules for transferring losses to the future when applying the simplified tax system

The loss received when applying the simplified tax system at the end of the year can be carried forward to the future, provided that you apply the simplified tax system with the object “income minus expenses”.

The loss can be carried forward for 10 years following the year it was received (paragraph 2, clause 7, article 346.18 of the Tax Code of the Russian Federation). If the loss has not been completely carried forward to the next year, it can be transferred in whole or in part to any year of the next 9 years (letter of the Ministry of Finance of Russia dated March 23, 2009 No. 03-11-06/2/49). If losses were received over several years, then they should be carried forward into the future in calendar order, starting with the earliest (paragraph 5, paragraph 7, article 346.18 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated July 14, 2014 No. 03-11-06/ 2/34135).

There are no restrictions on the amount of loss that can be carried forward; you have the right to carry forward any amount.

NOTE! According to para. 1 clause 7 art. 346.18 of the Tax Code of the Russian Federation for a loss incurred in previous tax periods, you can reduce the tax base according to the simplified tax system only based on the results of the current tax period (year), but not based on the results of the current reporting periods (1st quarter, half-year, 9 months).

When carrying forward losses to the future, it is necessary to keep tax records of the losses received and store documents confirming the amount of the loss for the entire period when the tax base of the current period is reduced (paragraph 7, clause 7, article 346.18 of the Tax Code of the Russian Federation). To maintain tax accounting for losses that can be carried forward to the future, Section III “Calculation of the amount of loss that reduces the tax base for the tax paid in connection with the application of the simplified taxation system” of the Income and Expense Accounting Book is intended. At the beginning of the current year, it reflects the amount of loss that can be carried forward to the future, in the context of each year for which it was received. At the end of the year, Section III of the Income and Expense Book shows the specific amount of loss that can be deducted from the tax base for the “simplified” tax for the past year, as well as the balance of the loss that carries over to the following tax periods.

For information on maintaining the Book of Income and Expenses, read the article “How to keep a Book of Income and Expenses under the simplified tax system (sample)?”

If you continue to apply the simplified tax system with the object “income minus expenses,” then there should not be any difficulties with transferring losses. But what if at the end of the year a loss is incurred, and the organization or individual entrepreneur switches from the simplified tax system to the OSNO? Is it possible in this case to include it in expenses that reduce income tax/income of individuals? Is it possible to take into account a loss received under the simplified tax system if, after the OSNO, you switch back to the simplified tax system again? Let's look at the answers to these questions.