Simplified taxation system income in 2020-2021 (6 percent): what do you need to know?

What is the simplified tax system

The simplified taxation system is one of the most economically feasible tax regimes, allowing to minimize tax payments and reduce the volume of reporting.

A feature of the simplified tax system, like any other special regime, is the replacement of the main taxes of the general taxation system with one - a single one. The following are not subject to payment on the simplified basis:

• Personal income tax (for individual entrepreneurs).
• Income tax (for organizations).
• VAT (except for export).
• Property tax (except for objects for which the tax base is determined as their cadastral value).

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STS - simplified taxation system

The use of the simplified taxation system (STS) for individuals and legal entities allows one to significantly simplify tax reporting while simultaneously reducing the amount of taxes paid. According to experts, the simplified taxation system in 2021 has become the most popular format for carrying out commercial activities of entrepreneurs and organizations. However, it is worth considering that this form of taxation has its limitations, and in some cases it is an economically unprofitable scheme. In any case, before switching to the simplified tax system from the general taxation system, UTII or from a patent, you need to weigh the pros and cons.

Who has the right to apply the simplified tax system in 2021

Individual entrepreneurs and organizations that meet certain conditions, in particular:

• The income limit at the end of the reporting or tax period does not exceed 200,000,000 rubles.
• Number of employees: less than 130 people.
• The cost of fixed assets is less than RUB 150,000,000.
• The share of participation of other organizations is no more than 25% (condition for legal entities).

note

that from 2021 the limits on the use of the simplified tax system have changed and increased tax rates have appeared. If the income from the beginning of the year falls within the range of 150-200 million rubles and/or the number of employees is 101-130 people, the right to the simplified tax system is retained. In this case, starting from the quarter in which the limits were exceeded, an increased tax rate is applied. It is equal to 8% for the “income” object and 20% for the “income minus expenses” object. If the income exceeds 200 million rubles and/or the number of employees becomes more than 130 people, the right to “simplified” will be lost.

For organizations, income limit that allows you to switch to the simplified tax system

, amounts to 112.5 million rubles. This means that it will be possible to switch to a simplified system from next year if, based on the results of nine months of the current year, income did not exceed 112.5 million rubles.

Note

: the values ​​of the marginal income for the application and transition to the simplified tax system
were not subject to adjustment by the deflator coefficient until January 1, 2021.
According to paragraph 4 of Art. 4 of Law No. 243-FZ dated 07/03/2016, a deflator coefficient was set for 2021 equal to 1. Read about changes in tax rates and limits on the simplified tax system from 2021 here.

Tax legislation allows individual entrepreneurs to combine simplified and patent taxation systems; read about how to do this in this article.

Who cannot apply the simplified tax system

• Organizations with branches.
• Banks.
• Insurance companies.
• Non-state pension funds.
• Investment funds.
• Securities market participants.
• Pawnshops.
• Organizations and individual entrepreneurs producing excisable goods (for example, alcohol-containing and alcoholic products, tobacco, etc.). Since 2020, an exception has been introduced - on the simplified tax system it is allowed to produce excisable grapes, wine, sparkling wine (champagne), wine materials, grape must produced from grapes of own production.
• Organizations and individual entrepreneurs extracting and selling minerals, with the exception of common ones).
• Organizations involved in gambling.
• Organizations and individual entrepreneurs at the Unified Agricultural Sciences.
• Notaries and lawyers in private practice.
• Participants in production sharing agreements.
• Organizations in which the share of participation of other organizations does not exceed 25%, with the exception of a number of institutions listed in paragraph 14 of paragraph 3 of Art. 346.12 Tax Code of the Russian Federation.
• Organizations and individual entrepreneurs with more than 130 employees (the limit has increased since 2021).
• Organizations whose residual value of fixed assets exceeds 150 million rubles.
• Budgetary and government institutions.
• Foreign companies.
• Organizations and individual entrepreneurs who did not submit applications for the transition to simplified taxation on time.
• Private employment agencies.
• Organizations and individual entrepreneurs on OSN.
• Organizations and individual entrepreneurs whose income exceeds 200 million rubles. per year (the limit has increased since 2021).

simplified tax system 15% or simplified tax 6% - what to choose?

It is always quite difficult for newly registered taxpayers to figure out what is more profitable - a simplified 6% or 15%? In most cases, the choice of taxation object is dictated by what turnover the simplifier will have and what types of activities he plans to engage in.

If the share of expenses for activities on the simplified tax system is significant, it is more profitable to choose the object “income minus expenses” with a rate of 15%, otherwise it is more reasonable to pay tax on income at a rate of 6%.

The place of doing business is also important, because many constituent entities of the Russian Federation establish preferential conditions for simplifiers, reducing taxes for certain categories of taxpayers (or for specific types of activities).

ConsultantPlus experts spoke in detail about the pros and cons of the simplified tax system. Get free demo access to K+ and go to the Guide to the simplified tax system to learn all the nuances of the simplified system.

Tax rates

For the simplified tax system with the object “income”

The basic tax rate is 6%, but it can be reduced by regional authorities to 1%.
From 2021, an increased tax rate has been introduced - 8%
. The procedure for applying bets is as follows:

1. Initially, the tax is calculated at the regular rate (6% or lower - depending on the region and activity).
2. If income since the beginning of the year has exceeded 150,000,000 rubles. or the average number of employees has become more than 100 people, then starting from the period in which this excess occurred and until the end of the year, tax under the simplified tax system must be calculated at a rate of 8%.
3. If income since the beginning of the year has exceeded 200,000,000 rubles. or the average number of employees has become more than 130 people, then the right to apply the simplified tax system is lost.

For the simplified tax system with the object “income minus expenses”

The basic tax rate is 15%, but it can be reduced by regional authorities to 5%.
From 2021, an increased tax rate has been introduced - 20%
. The procedure for applying bets is as follows:

1. Initially, the tax is calculated at the normal rate (15% or lower - depending on the region and activity).
2. If income since the beginning of the year has exceeded 150,000,000 rubles. or the average number of employees has become more than 100 people, then starting from the period in which this excess occurred and until the end of the year, tax under the simplified tax system must be calculated at a rate of 20%.
3. If income since the beginning of the year has exceeded 200,000,000 rubles. or the average number of employees has become more than 130 people, then the right to apply the simplified tax system is lost.

Advantages of a simplified taxation system

As the Tax Code of the Russian Federation states, the simplified tax system allows you to consolidate all taxes in a single payment, calculated according to the results of activities in a specific tax period. The use of a simplified taxation system is accompanied by the following positive aspects:

• the ability to choose from two taxation options: “Income” and “Income reduced by the amount of expenses”;
• no need to maintain accounting records (only for individual entrepreneurs);
• lower tax rates;
• the possibility of deducting the amount of paid insurance premiums from the income received (when using the “Income minus expenses” scheme);
• no need to prove the validity of these expenses during desk audits;
• the possibility of reducing the tax rate by regional legislation;
• rarity of on-site tax audits

Payment of VAT under this taxation system is required only in case of import of products into the domestic market of the Russian Federation. Declarations under the simplified taxation system are submitted by legal entities until March 31 and by private entrepreneurs until April 30.

Transition to simplified tax system in 2021

To switch to the simplified tax system, you must submit a notification about the transition to the simplified tax system to the tax office.

Note!

To switch to the simplified tax system starting in 2021, you had to submit a notification before December 31, 2021. If you did not have time to do this, you will have to wait another year.

If you are just planning to open an individual entrepreneur or register an LLC, then the notification can be submitted either with documents for registration, or within 30 days after state registration.

note

, that if you do not meet the specified deadline, you will be automatically transferred to the main taxation regime - the most difficult and unprofitable for small and medium-sized businesses.

Existing individual entrepreneurs and organizations can switch to the simplified tax system only from January 1 of the next year. To do this, they must submit a notification before December 31 of the current year. Due to the fact that organizations in the application must indicate the income received for 9 months (as of October 1), they can submit the application no earlier than October 1.

To switch to the simplified tax system, existing individual entrepreneurs and LLCs must meet the following conditions:

• The amount of income for 9 months of the year does not exceed 112,500,000 rubles. (the condition applies only to organizations).
• The number of employees is no more than 130 people.
• The cost of fixed assets does not exceed 150 million rubles.
• The share of participation of other organizations is no more than 25%.

note

, you can switch to the simplified tax system only once a year, as well as change the object of taxation.

Read more about how to confirm your right to work on a simplified basis here.

Deadlines for paying the simplified tax system in 2021

At the end of each reporting period (1st quarter, half a year and 9 months), individual entrepreneurs and LLCs using the simplified tax system must make advance payments. In total, 3 payments must be made per calendar year - by April 25, July 25 and October 25. And at the end of the year you need to calculate and pay the final tax.

Note

: if the deadline for paying the simplified tax system falls on a weekend or holiday, then the deadline for payment is postponed to the next working day.

The table below shows the deadlines for paying the simplified tax system in 2021, taking into account postponements due to weekends:

Minimum tax (loss under simplified tax system)

If, at the end of the calendar year, an individual entrepreneur or LLC at the “Income minus expenses” object received a loss (expenses exceeded income), then it is necessary to pay the minimum tax (1%

from all income received).

In this case, the loss can be included in expenses next year or during one of the next 10 years (after which it is canceled). If there was more than one loss, then they are transferred in the same order in which they were received.

Also, when calculating tax according to the simplified tax system, it will be possible to take into account not only the loss of the previous period, but also the amount of the minimum tax paid last year. Let's look at an example of how to correctly take into account losses from previous years.

Example of accounting for losses from previous years

2019

Income - 2,650,000 rubles.

Expenses - 3,200,000 rubles.

Loss - 550,000 rubles.

The minimum payment at the end of the year is 26,500 rubles

(2,650,000 x 1%).

2020

Income - 4,800,000 rubles.

Expenses - 3,100,000 rubles.

The tax base at the end of 2021 can be reduced by the amount of the minimum tax paid for 2021 and the loss received in this period. Thus, the single tax base will be 1,123,500 rubles (4,800,000 - 30 - 550,000). The tax that will need to be paid for 2021 will be equal to 168,525 rubles

(1,123,500 x 15%).

Is it possible to reduce the tax on insurance premiums?

The tax on insurance premiums is reduced only under the simplified tax system “Income”. Using the simplified tax system “Income minus expenses,” you do not deduct insurance premiums from tax, but take them into account as a regular expense.

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Tax accounting and reporting of individual entrepreneurs and LLCs on the simplified tax system in 2021

Tax return

At the end of the calendar year, it is necessary to submit one tax return to the simplified tax system.

Deadline for submitting the simplified tax system declaration in 2021:

Note

: if the deadline for filing the simplified taxation system declaration falls on a weekend or holiday, then the deadline for payment is postponed to the next working day.

Accounting for income and expenses (KUDiR)

Individual entrepreneurs and organizations using the simplified tax system are required to keep a book of income and expenses (KUDiR). There is no need to certify to the KUDiR tax office.

Accounting and reporting

Individual entrepreneurs using the simplified tax system are not required to submit financial statements and keep records.

Organizations using the simplified tax system, in addition to tax returns and KUDiR, are required to maintain accounting records and submit financial statements.

Accounting statements for different categories of organizations vary. In general, it consists of the following documents:

• Balance sheet (form 1).
• Statement of financial results (form 2).
• Statement of changes in capital (Form 3).
• Cash flow statement (form 4).
• Report on the intended use of funds (form 6).
• Explanations in tabular and text form.

More details about accounting and tax reporting in the accountant's calendar.

Reporting for employees

They rent only to individual entrepreneurs and organizations that have employees.

Learn more about reporting for employees.

Cash discipline

Organizations and individual entrepreneurs carrying out operations related to the receipt, issuance and storage of cash (cash transactions) are required to comply with the rules of cash discipline.

Learn more about cash discipline.

note

, in 2021 the transition to online cash registers began. In 2021, all organizations on the simplified tax system that carry out settlements with the population, as well as most entrepreneurs, are required to apply them. Individual entrepreneurs from the service sector without employees received the right to defer the installation of cash register systems until July 2021.

Additional reporting

Carrying out certain types of activities, as well as owning certain property, requires paying additional taxes and maintaining records.

Learn more about additional LLC taxes.

Learn more about additional taxes for individual entrepreneurs.

How many types of activities are allowed to be carried out on the simplified tax system?

One of the main advantages of the simplified tax system is the ability to calculate tax on total income from different areas of business. The legislation does not limit types of activities on simplified business, that is, an individual entrepreneur has the right to conduct several areas of business. The contribution is calculated on total receipts, information about which is included in the annual declaration.

For example, an organization is engaged in road transportation. At the same time, the entrepreneur opens several food retail outlets. Cash receipts are growing, which allows him to invest in another area - catering. For all areas of business, the individual entrepreneur will report in the annual declaration - income is summed up, tax is withheld at the same rate. That is, there is no need to register with the Federal Tax Service for different areas of business; the contribution is paid to one inspectorate - at the registration address.

Separate accounting

When combining the tax regimes of the simplified tax system and the PSN, it is necessary to separate

income and expenses. As a rule, there are no difficulties with the division of income. In turn, with expenses the situation is somewhat more complicated.

There are expenses that cannot be clearly attributed either to the simplified tax system or to other activities, for example, the salaries of employees who are engaged in all types of activities at the same time (director, accountant, etc.). In such cases, costs must be divided

into two parts
in proportion
to the income received on an accrual basis from the beginning of the year.

Loss of the right to use the simplified tax system

Note!

A transition period under the simplified tax system has been approved since 2021. Now you can be on a simplified system until the amount of income exceeds 200 million rubles or the number of employees - 130 people. However, the tax will have to be paid at higher rates - 8 instead of 6% and 20 instead of 15%.

Individual entrepreneurs and organizations lose the right to use the simplified tax system if during the year:

• The amount of income exceeded 200,000,000 rubles.
• The average number of employees was more than 130 people.
• The cost of fixed assets exceeded 150 million rubles.

Starting from the quarter in which individual entrepreneurs and LLCs ceased to meet the specified conditions, they are transferred to OSN.