Reduction of UTII by the amount of insurance premiums in 2021 for individual entrepreneurs

In what ways can you reduce

It does not matter whether the dues for the current period have been paid. For example, the company paid in October for September. Mandatory contributions for June are transferred in the same month. Then the tax for the fourth quarter is reduced, quite legally.

The basis is only calculated mandatory contributions. It doesn’t matter what the overpayments were, or whether they exist at all.

You can reduce the amount for employees with a maximum of 50%. Here other indicators also do not play a role.

Restrictions

346.32 of the Tax Code of the Russian Federation establishes some features associated with this process. In some situations, the reduction of UTII for insurance premiums occurs by no more than half.

Let's look at an example.

1. The company is registered with the tax authority at its current location.
2. Payment of the appropriate insurance premiums is mandatory.
3. In the neighboring urban district, activities are carried out that are subject to UTII. With the corresponding role, the company is registered with the regulatory authorities there.
4. When insurance premiums are calculated, the company has the right to take into account the amounts paid where the company is actually located at the moment.

Attention! If you have no employees, your UTII will be reduced by the entire amount of your insurance premiums. The rule applies to those quarters in which contributions were paid. In this case, the 50% limit does not apply.

How to reduce UTII to the maximum: the best terms for paying contributions

An individual entrepreneur without employees reduces UTII by 100% of the insurance premiums paid for himself.

Individual entrepreneurs with hired workers reduce UTII within 50% of the insurance premiums paid for hired workers. Those. if the total amount of the payments indicated below (composition of the deduction) in a quarter exceeds half of the UTII for this quarter, then 50% of the UTII must be paid.

In 2021, individual entrepreneurs did not have the right to reduce UTII by insurance premiums paid for themselves. This provision of the Law created unequal conditions between individual entrepreneurs on the simplified tax system and individual entrepreneurs on UTII. To restore justice, Federal Law No. 178-FZ of June 2, 2016 introduced an amendment to the Tax Code of the Russian Federation in paragraphs. 1 item 2 art. 346.32. From 01.01.

It is noteworthy that clause 2.1. Art. 346.32 remained unchanged, which causes confusion among many UTII payers: one paragraph of the Code allows the reduction of UTII by fixed contributions of an individual entrepreneur, who is the employer, and another paragraph prohibits this.

The reduction in UTII tax on insurance premiums in 2021, both for individual entrepreneurs with employees and without employees, is made for the quarter during which the insurance premiums were transferred. That is, for the 1st quarter, UTII can be reduced by the amount of contributions paid during the 1st quarter. Likewise for subsequent quarters.

In order to pay as little as possible to the budget, it is necessary to reduce the cost of the duty for each period, and not a single tax. To do this, payments for yourself should be made to the Federal Tax Service not once a year, as required, but every quarter, dividing the annual payment into 4 equal parts. Everything is clear with duties for employees; they are paid monthly.

The amount of fixed payments remains unchanged and amounts to 23,400 rubles in 2021. for pension and 4590 rub. for honey insurance. But 1% of the excess is not a constant value. Therefore, it would be more competent to calculate the preliminary UTII for the quarter, then subtract the fixed payments made from it, and only then transfer 1% to the Pension Fund in the amount that is enough to cover the entire balance of the payment.

But keep in mind that the balance of contributions, that is, that part of them that remains after the duty has been reduced to 0, is not transferred to another quarter. Therefore, it is worth carrying out such an operation only if, according to a preliminary forecast, the annual income actually exceeds the limit of 300,000. And by a considerable amount.

What is included in insurance premiums?

For 2021, there are two categories, one of which may include insurance premiums. There is a fixed amount that remains the same for all entrepreneurs. Even the field of activity does not affect the indicator.

• Medical insurance amounting to almost 7,000 rubles.
• Mandatory pension insurance, 29,500 rubles.

36,200 rubles – the total amount of contributions for enterprises whose revenue does not exceed 300 thousand rubles. 1% of the difference is added to the contribution amount if the company’s profit increases. But such calculation methods apply only to pension insurance. An entrepreneur with individual entrepreneur status pays for himself. Contributions for employees are also separately controlled by law.

Typically, the estimated income of an individual entrepreneur is lower than the actual profit. Under the PSN system, approximately the same rules apply. By ignoring business expenses, down payments are often the largest.

Reference! The general indicator from all taxation systems is applied when the entrepreneur himself chooses a combined approach to his business.

Reducing UTII for individual entrepreneurs with employees

An individual entrepreneur with hired employees can reduce the tax by half due to insurance premiums for employees and for themselves. That is, even if contributions for employees cover the tax completely, the employer will have to pay 50% of it in any case.

Until January 1, 2021, the individual employer’s contributions for himself were not taken into account, but now, all insurance contributions are included in the amount of the reduction with employees.

Example. The amount of UTII for an individual entrepreneur with an employee is 23,000 rubles. Insurance premiums for employees - 11,000 rubles, for yourself - 9,059.50 rubles. An individual entrepreneur can reduce the tax amount by no more than 50%, which means in any case he will have to pay 11,500 rubles. It turns out that he will be able to deduct 11,000 rubles from the UTII. contributions for the employee and the remaining 500 rubles. from own fixed insurance payments.

It is important to understand that in this case an individual entrepreneur will be considered an employer not from the moment of concluding an employment contract with an employee, but from the moment of payment of the first salary.

For example, an individual entrepreneur on UTII hires his first employee on June 22. The first salary will be paid on July 10. This means that the second quarter (April, May, June), like the first, the individual entrepreneur will be recognized as self-employed and will be able to reduce UTII by 100% of contributions for himself. In the third quarter, the individual entrepreneur already acquires the status of employer.

Rates

Article 425 of the Tax Code of the Russian Federation specifies the basic tariffs that apply to all individual entrepreneurs. This also applies to those who apply UTII. They are:

1. 22% - in relation to payments that do not exceed the amount for calculating contributions to compulsory pension insurance.
2. 10% - from payments that exceed the specified amount.

The occupational risk class for a particular activity determines what payments will be made for contributions for protection against accidents at work. For individual entrepreneurs, there is an additional payment that is sent to the Pension Fund. 8-fold fixed payment for the year - this amount should not exceed all contributions paid by a particular entrepreneur.

KBK for payment of insurance premiums for individual entrepreneurs

From January 1, 2021, new BCCs are in effect for paying insurance premiums for individual entrepreneurs. Moreover, to transfer contributions for 2021, some BCCs are used, and for payments for 2021 and earlier, others are used.

Favorable fee

If the individual entrepreneur does not have employees, then you can apply the simplest tips:

• Insurance premiums “for yourself” are transferred at the end of each quarter.
• Sometimes, by the end of the reporting period, the figures exceed 300 thousand rubles.

Then you need to first make a calculation of exactly how much UTII remains for payment. Then the money is transferred to the Pension Fund so that the UTII becomes zero. If at the end of the year the payment for the Pension Fund remains the same, then you can choose other periods of time to reduce it.

For an individual entrepreneur, you can use a similar procedure.

No one will return the UTII paid, which is why it is so important to minimize other tax payments. There is no need to transfer excess funds to the Pension Fund in advance; there is simply no point in doing so. It is better to use free finance to generate additional profit or solve other production problems.

Important! Online accounting typically uses the same principles to solve problems.

What other features might there be?

A single tax on imputed income is paid by those companies and entrepreneurs engaged in certain types of activities. This applies to specific services with goods and to serving the population equally. Each region independently determines which areas of work fall under UTII in a given case. An important factor is the economic characteristics of the area.

The main feature is that payment is not made from actual income, but only from estimated profit. At the same time, the payment itself remains fixed; it can only be affected by the current location.

The amount of revenue does not matter - when switching to UTII, everyone is required to pay funds. Payment of the fee remains a mandatory requirement even for periods when there were no contracts or transactions at all. Exceptions are made only if the activity was suspended for valid reasons, which requires additional evidence. The presence of documentary evidence becomes an important condition.

To resolve the issue, it is recommended to consider the following factors:

1. The presence or absence of employees at the individual entrepreneur. If modes are combined, it is important to assess which subordinates are engaged in which type of activity. This is important for taking into account the fees that apply to individual entrepreneurs.
2. The mode used, whether several options are combined at once.
3. The date on which fixed contributions are paid.
4. Actual amounts transferred for fixed contributions.

How to reduce UTII tax on contributions from individual entrepreneurs without employees

What contributions can be used to reduce the single tax on imputed income - the composition of the deduction:

• insurance contributions to the pension fund and health insurance fund, paid by the entrepreneur for himself, in the established fixed amount;
• insurance contributions to the pension fund paid by the entrepreneur for himself in the amount of 1% of the amount of income exceeding 300,000 rubles in the reporting year.*

*A couple of years ago, the issue was often discussed that individual entrepreneurs cannot reduce taxes on insurance contributions by 1% to the Pension Fund. The reason was a letter from the Ministry of Finance (No. 03-11-09/57011 dated October 6, 2015), explaining that contributions to the Pension Fund in the amount of 1% do not reduce tax under the simplified tax system. However, this letter did not comply with the law and was withdrawn by the department (see Letter of the Ministry of Finance No. 03-11-09/71357 dated 12/07/2015).

Individual entrepreneurs' contributions for voluntary personal insurance do not reduce the UTII tax.

How much can you reduce UTII - the amount of deduction:

• in the amount of contributions actually paid in the reporting quarter.

In this case, the tax can be reduced to zero. For individual entrepreneurs without employees there is no 50% limit. But if the insurance premiums transferred for the quarter exceed the quarterly UTII, there will be no compensation, and the deduction of contributions already paid is also not carried forward to the next quarter.

How to calculate UTII taking into account deductions . When calculating the payment of UTII, contributions paid in the same reporting quarter are accepted for deduction. We discussed this in more detail above (go back and read). Thus, UTII payable:

Formula for calculating payment for imputation, taking into account deductions

Additional Information

Only what was actually transferred is paid into the calculation. If the fee is not paid, it is forgotten until this situation is corrected.

It will not be possible to take into account anything that will be more than the established annual amount. This even applies to situations where the individual entrepreneur himself decides to transfer more. Calculated and paid contributions are concepts that are similar to each other, but it is important not to get confused between them. The calculated amounts are otherwise called accounting amounts. The second concept concerns the amounts that were actually transferred.

The procedure for calculating contributions for individual entrepreneurs is established in No. 212-FZ of 2009. Quarterly or monthly payments are not provided in this case. You only have to pay for the year as a whole. However, you cannot simply pay out more money than originally stated.

Next, the dates of transfer must be controlled. There are only general dates for fixed transfers, which serve as a limitation.

Under the simplified tax system, entrepreneurs can transfer arbitrary amounts throughout the year. Or choose a specific moment when the entire amount is transferred. Individual entrepreneurs themselves choose the order that would be most convenient for them. The reduction is also made for the period when the money is definitely paid. If any part remains unaccounted for, it cannot be transferred to the next year.

The procedure for accounting for fixed contributions does not depend on whether the entrepreneur has employees or not. All you need is the date of actual transfer of the full amount.

Reductions are allowed not only for the contributions themselves, but also for other indicators:

• Paid sick leave.
• Voluntary personal insurance contracts.

The main thing is that the reduction does not exceed 50%.

If employees are hired during the year, the entrepreneur is deprived of the right to completely reduce the tax. This requirement always applies.

Changes – 2021 on simplified tax system, UTII, insurance premiums

Elmira Bagautdinova

Practicing expert, tax consultant, full member of the Chamber of Tax Consultants of Russia, certified teacher of IPB and PNK of Russia, MBA programs at Ulyanovsk State Technical University

Insurance premiums for organizations and individual entrepreneurs making payments and other rewards to individuals

– Government Decree of November 15, 2017 No. 1378

The maximum base for insurance premiums for 2021 has increased:

– 1,021,000 rub . for pension contributions. For income within this amount, contributions must be calculated and paid at a rate of 22%. For payments over – at a rate of 10%;

– 815,000 rub. for social contributions at a rate of 2.9%. There is no need to charge social security contributions for payments above this amount.

There is still no cap on the benefit base for medical and injury payments.

– General contribution rates will not change until 2020

Federal Law No. 361-FZ of November 27, 2017 extended the current general SVZ tariffs of 30% for companies, entrepreneurs and individuals paying salaries (in cash or in kind) until 2021 inclusive.

Changes have been made to Article 426 of the Tax Code of the Russian Federation. They do not affect reduced contribution rates (Article 427 of the Tax Code of the Russian Federation), additional contribution rates (Article 428 of the Tax Code of the Russian Federation).

– New reasons not to accept a single calculation of contributions (ERCB)

In 2021, tax authorities had two reasons to return the settlement to policyholders for revision:

– the amount of contributions for all sections 3 of the calculation did not converge with the total amount of pension contributions;

– in section 3 of the calculation, the company provided false information about at least one individual.

Federal Law No. 335-FZ of November 27, 2017 supplemented Article 431 of the Tax Code of the Russian Federation with grounds for recognizing the calculation of the SVZ as not submitted (clause 7 of Article 431 of the Tax Code of the Russian Federation):

– the amounts of remuneration for each employee do not coincide with the total amount of payments for the company;

– the bases for regular and additional pension contributions from all sheets of section 3 do not coincide with the general bases for contributions.

– In January 2021, a new calculation of insurance premiums (ERSV) will appear.

Changes will be made to certain indicators for calculating insurance premiums. This initiative comes from the tax service and is not related to changes in legislation.

– Features of the application of reduced tariffs for the simplified tax system

The list of activities for which reduced contribution rates for the simplified tax system can be applied has been clarified. The names of preferential types of activities from 2021 coincide with OKVED-2. Federal Law No. 335-FZ of November 27, 2017 expanded the list of types of activities that give simplifiers the right to a preferential tariff of 20% (clause 5, clause 1, article 427 of the Tax Code of the Russian Federation). Reduced tariffs for new types of activities were introduced retroactively, i.e. from January 1, 2021.

REMINDER. Simplified residents need to check their entitlement to benefits for the past year. If you have the right, then you need to recalculate contributions for January - November and submit clarifications for the first quarter, half-year and 9 months of 2021, in which contributions were calculated at regular rates.

– New rules for calculating the share of preferential income

The share of income from core activities must be at least 70%. This norm has remained. Only taxable income was taken into account when calculating the share. Therefore, organizations lost the right to benefits if the majority of their income was non-taxable income.

From January 1, 2021, the share must be calculated based on all receipts, including non-taxable ones (clause 6 of Article 427 of the Tax Code of the Russian Federation).

Recommendations . Recalculate the share of income for 2017 from preferential activities. If you get 70% or more in your calculations, then you need to charge contributions at a rate of 20% from January last year (clause 3, clause 2, article 427 of the Tax Code of the Russian Federation).

– Insurance premiums for individual entrepreneurs

From 01/01/2018, personal contributions of entrepreneurs no longer depend on the minimum wage as of January 1. The Tax Code of the Russian Federation now does not have a formula for calculating these contributions, but there are fixed amounts. Federal Law No. 337-FZ dated November 27, 2017 established these amounts for the next three years at once - from 2021 to 2021 (clauses 1, 2, clause 1, article 430 of the Tax Code of the Russian Federation).

In 2021, individual entrepreneurs will have to pay a contribution in the amount of 32,385 rubles if the annual income of the individual entrepreneur is less than 300,000 rubles, incl. pension contributions – 26,545 rubles. , medical fees - 5840 rubles.

In 2021 – RUB 36,238, incl. pension contributions - 29,354 rubles, medical contributions - 6884 rubles.

In 2021 – 40,874 rubles, incl. pension contributions - 32,448 rubles, medical contributions - 8,426 rubles.

If the entrepreneur’s annual income exceeds 300,000 rubles, then an additional 1% of income in excess of this amount must be transferred. Individual entrepreneurs' insurance contributions for compulsory pension insurance are limited to 8 times the fixed contribution:

for 2021 – 26,545 rubles. x 8 = 212,360 rubles; for 2021 – RUB 29,354. x 8 = 234,832 rubles; for 2021 – RUB 32,448. x 8 = 259,584 rub.

The deadline for individual entrepreneurs to pay personal contributions has been extended

Federal Law No. 335-FZ dated November 27, 2017 amended Article 432 of the Tax Code of the Russian Federation. The deadline for paying fixed contributions was postponed by three months (paragraph 2, paragraph 2, article 432 of the Tax Code of the Russian Federation). Individual entrepreneurs whose income exceeds 300,000 rubles per year will pay an additional 1% contribution until July 1 of the next year. According to paragraph 9 of Art. 430 of the Tax Code of the Russian Federation, income of individual entrepreneurs is determined depending on the taxation regime. Recommendations. It is beneficial for an individual entrepreneur to pay all contributions “for himself” in 2018, for example, to distribute their payment quarterly. This will make it possible to reduce not only the simplified tax for the year, but also advances under the simplified tax system.

– Changes for the simplified tax system

– New Book of Accounting D and R. The Book of Accounting under the simplified tax system in 2018 must be filled out according to the new form, which was approved by the Ministry of Finance in order dated December 7, 2016 No. 227n.

– Federal Law No. 286-FZ of September 30, 2017 exempted a number of incomes from tax. Dividends that the participants refused, as well as contributions to the company’s property in accordance with civil legislation (Article 66.1 of the Civil Code of the Russian Federation, new paragraph 3.7, paragraph 1, Article 251 of the Tax Code of the Russian Federation) are not taken into account in the simplified tax system database. But to do this, you need to check and clarify the wording in the organization’s charter. There should be no reference to the fact that this is a contribution to replenish net assets, because pp. 3.4 clause 1 art. 251 of the Tax Code of the Russian Federation has been repealed since 01/01/2018.

– Changes to UTII

The deflator coefficient K1 for calculating UTII in 2021 increased to 1.868 (in 2017 – 1.798). Therefore, imputed income for organizations and entrepreneurs will increase.

From 2021, the form of the UTII declaration will change

The UTII declaration for the first quarter will have to be submitted using a new form. The form will contain lines for a new deduction - for expenses on cash register equipment.

Postponement for online cash register until July 1, 2021. It will be received by:

– organizations and individual entrepreneurs on UTII, except for those working in the field of catering and retail trade;

– individual entrepreneur on patent, except for traders and catering;

– Individual entrepreneur on PSN/UTII for retail or catering without employees. In addition, firms and individual entrepreneurs in all modes that provide services to the population, with the exception of catering with employees, received a deferment.

New deduction for cash registers (Federal Law No. 337-FZ of November 27, 2017). Individual entrepreneurs on a patent and UTII will receive a tax deduction for the purchase of an online cash register. The deduction amount is 18,000 rubles. for one cash register. By this amount, you can reduce the cost of a patent or imputed tax in 2021 and 2021, provided that the individual entrepreneur registered the cash register after February 1, 2021 (Federal Law of November 27, 2017 No. 349-FZ).

– Patent system

The coefficient by which entrepreneurs index potential income has increased to 1.481, and the maximum possible income is adjusted to the PSN. Therefore, the cost of a patent for an individual entrepreneur will increase.

Other changes

– Personal income tax. Federal Law No. 333-FZ dated November 27, 2017 introduced two clarifying conditions for calculating financial benefits. 2-NDFL certificates for 2021 will need to reflect the new income codes established by order of the Federal Tax Service of Russia dated October 24, 2017 No. ММВ-7-11/820.

– Government Decree of November 15, 2017 No. 1378. The contribution limits have increased.

– 1,021,000 rub. – for pension contributions, RUB 815,000. – for social contributions. Companies and individual entrepreneurs with employees will pay more insurance premiums.

– Federal Law of December 28, 2017 No. 421-FZ. New minimum wage. From January 1, the federal minimum wage increased from 7,800 to 9,489 rubles. The new minimum wage will affect wages, benefits and vacation pay.

– The maximum amounts of sick leave and maternity leave have increased. In 2021, the calculation period will change, so the maximum maternity and child benefits and daily sick leave benefits will increase.

– Child benefits will increase.

From February 1, 2021, child benefits will increase. The Russian government will index payments by a factor of 1.032.

– One-time benefit for the birth of a child – up to 16,873.54 rubles. (was 16,350.33 rubles).

– One-time benefit for women who registered in the early stages of pregnancy – up to 632.76 rubles. (was 613.14 rubles).

– Allowance for caring for a second and subsequent children for up to one and a half years – 6327.57 rubles. (was 6131.37 rubles).

– The minimum allowance for caring for the first child is 3795.6 rubles.

FINALLY

Professionalism, an active position and understanding of the tactics of inspectors will save money for the company and individual entrepreneurs.

On this topic:

Annual reporting – 2021: calculation of insurance premiums and taxes by entrepreneurs

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