Are there any benefits provided?
Not everyone knows that a pensioner in our country can engage in private entrepreneurship. Opening an individual entrepreneur by disabled people and people receiving pensions is encouraged.
The reason for the positive attitude towards such activities is not rooted in the fact that the state seeks to support low-income citizens: immediately after opening a private business, the entrepreneur registers with the tax office and pays taxes. Payment of taxes is required even if the business does not make a profit.
No benefits are provided for pensioners and disabled people. They are not present either at the opening of the business or during its development. A pensioner must conduct business on the same basis as other entrepreneurs, making deductions under the same conditions.
There are also positive aspects: the payment of pensions does not stop when opening an individual entrepreneur. The pensioner will not only not lose his accruals, they will increase in accordance with the law on working pensioners. Since he will continue to pay insurance premiums, the insurance portion of his pension will increase in accordance with the law.
When compared with the situation of non-working pensioners, this does not give the entrepreneur a financial advantage. An additional accrual is provided for them when the pension amount falls below the subsistence level established for the region. If an individual entrepreneur is registered in the name of a pensioner, he will lose this subsidy.
Find out in this article what the cost of living for a pensioner in Russia is for 2016-2017.
How is an individual entrepreneur's pension calculated?
There are many different nuances and features in the procedure for calculating pensions for individual entrepreneurs. Starting from 2015, the pension calculation process is based on the number of points accrued over the entire period of service taken into account. Today the following formula is applicable: Every year the size of the pension is increasingly influenced by the size of the pension coefficients. Today, with each year of non-use of the pension, it grows by a certain percentage: fixed 5.6%, and insurance 7%.
Therefore, the longer an entrepreneur does not apply to the regional Pension Fund branch to apply for a pension, the greater its value will be. A citizen who has already begun to receive a pension may refuse it in order to receive a certain number of coefficients. However, in this case, the period during which the pension will not be accrued should not be less than 12 months . But the period of non-accrual may be increased to a greater extent. There are various ways to calculate pension amounts: you can do this yourself, using the above formula or using a special calculator, of which there are many on the Internet. If a citizen does not have experience in carrying out this type of calculation, he can carry out the calculation by analogy. Obtaining more accurate data is possible by contacting the Pension Fund branch directly with a specific request. You can also use the services provided on the State Services portal. Was individual entrepreneurship included in the work experience: The answer to this question will be positive. However, we should not forget that there are a number of special requirements for the length of work experience. The length of service must be no less than the value established at the legislative level.
Factors influencing the size of the pension for individual entrepreneurs:
- amounts transferred to the Pension Fund by the individual entrepreneur himself;
- length of experience;
- duration of non-use of pension.
The most important points should be studied in advance. Only in this case is it possible to avoid the emergence of various controversial issues and complications.
Registration of individual entrepreneurship by a pensioner
The procedure for registering an individual entrepreneur as a pensioner is quite complicated and requires collecting a package of documents. If you fill out the forms yourself, inaccuracies may occur, which will result in the return of documents.
You can avoid mistakes if you contact a consulting firm whose specialists have the necessary experience and information about currently accepted state standards. They guarantee that the paperwork will take place without unnecessary hassle and will not cause additional complications associated with financial expenses.
Here's what you need to do if you decide to register yourself:
- look at the OKVED directory;
- select the type of activity;
- correctly plan your activities, determine its direction in order to avoid unnecessary expenses when changing this plan in the future;
- fill out application form No. P21001, which you can;
- start collecting a package of documents (TIN, copies of passport, receipt of payment of state duty).
After you collect all the documents and deliver them to the tax office, the documentation package will be reviewed within five days. The registration procedure is standard, but from 2021 there are changes for entrepreneurs who have not registered. They will be able to legalize their paid activities and take advantage of “tax holidays”. These conditions are available only to individual entrepreneurs working under the simplified tax system and PSN.
Responsibilities of an individual entrepreneur
Having accepted responsibility and becoming an entrepreneur, you are obliged to obey the laws of our country. It is necessary to study administrative and state codes, monopoly and legislative acts. The main responsibility is the timely payment of taxes to the local, regional and state budgets.
Types of taxes to be paid
- Tax to the Pension Fund. The fixed pension tax for individual entrepreneurs consists of funded and insurance parts. You must pay in two receipts once a year or quarterly, as you choose.
- Payments to the Compulsory Medical Insurance Fund. Individual entrepreneurs pay fixed amounts to the Federal Department of Health Insurance. Payment takes place only through Sberbank cash desks using receipts. If the individual entrepreneur has a bank account, payments can be made from it. No interest is paid in this case.
Regardless of the chosen business activity, a pensioner must pay taxes on the same basis as other entrepreneurs. You shouldn’t wait for problems to arise; it’s better to study all the necessary laws in advance, since fines often hit the budget hard.
The indexation of pensions for workers was set at 3,500 rubles
The time to appease the population is as good as it gets, now or never.
Elections to the State Duma will take place in September, and all parties simply need to show concern for the elderly. What is still in 2016-2020. there was “no money”, this week they will most likely be found.
There is hope that the authorities will not limit themselves to some very small payments (indexation to pensioners whose pension and salary are commensurate with the minimum wage). At any other, not so responsible, time, yes, it would be possible to symbolically meet some small sections of working pensioners halfway. But not today.
In short, you can expect something more serious from the authorities.
In order not to guess at the tea leaves, we decided to ask economists who know what the cash reserves are in the budget and what working pensioners can claim.
Deputy, Doctor of Economic Sciences, Professor Oksana Dmitrieva was the first to raise this topic 9 months ago in the St. Petersburg Legislative Assembly.
— Oksana Genrikhovna, you were at the origins of this months-long marathon for the rights of working pensioners. Tell me what to expect in the end?
— We carried out financial and economic calculations. On average, the accumulated under-indexation of pensions for working pensioners over the years of its freezing is approximately 3-3.5 thousand rubles each. Accordingly, if indexation begins, then each working veteran’s pension should increase by approximately this amount.
— If we proceed from the fact that the government should index all working pensioners, without identifying individual groups that especially need additional support?
- The only way. Our pensions are already equal in nature. Even for people with above-average or high salaries, the replacement rate is very low - not 50, not 30, or even 20%.
Discrimination occurs in two directions. I have already said about the first one. The second point is that the government should review the pension law adopted in 2014 when switching to a points system. And also eliminate the distortions that disadvantage working pensioners. Today, no matter what his salary is, and therefore the size of the transferred insurance premiums, he can accumulate no more than 3 points per year. Three times less than during indexation are accrued to his non-working colleagues.
— If the government makes this decision, should it go through some kind of procedure? Or does it take effect immediately?
“This is a change in the law; accordingly, the State Duma must vote for it. There is only one line, the discussion will take no more than a day. And from what date the payments of the indexed pension will begin will be decided by parliament. The further it is pushed back, the less money veterans will ultimately receive.
Depending on which month payments begin, according to our estimates, an additional 200 billion rubles will be needed.
— Probably, there is no risk that the deputy corps will “cut down” indexation, isn’t it?
- I think no. The current deputies are very law-abiding people; they will vote as they are told.
Our faction introduced this bill to the St. Petersburg Legislative Assembly 9 months ago. During this time it was never included on the agenda. Apparently, there was such a command from above. They turned off our microphones, accused us of populism, of personal PR... Thanks to public opinion, the problem reached the president and the command “yes” came from above.
So much for political will. When it is not ordered, it is impossible, when it is ordered, it is possible.
Fictitious individual entrepreneurs, risks associated with their opening
Nowadays, you can meet young people, working citizens, who register an individual entrepreneur in the name of their elderly relative. They hope to get benefits and get rid of the need to pay taxes.
Pensioners need to know that no benefits are provided for them when opening an individual entrepreneur. With fictitious registration, all the burdens of paying taxes will fall on their shoulders. Their ignorance will not be a basis for exemption from liability to the state.
In case of non-payment of taxes, the pensioner will have to repay the debt by paying with personal property, pay a fine, and perform forced labor. He may lose the right to continue doing business. In the worst case, he could be deprived of his freedom.
Additional features
An individual entrepreneur will have the opportunity to use property rights if he needs to purchase any real estate, so he will increase his capital. Acquired real estate can be passed on by inheritance. If desired, a pensioner will be able to work in several organizations at the same time and engage in intellectual work.
A business makes a profit at any age if the entrepreneur is well versed in the laws, pays taxes on time, and is familiar with his rights and responsibilities.
Individual entrepreneur and pensioner status
Russian legislation enshrines the right of any citizen to be an individual entrepreneur, provided that he is legally capable and has reached the age of majority. Persons under 18 years of age can also register as entrepreneurs with parental consent or through an emancipation procedure.
As for retired businessmen, there are no restrictions for them to obtain individual entrepreneur status either in the registration law No. 129-FZ or in the Civil Code. The only condition, as for other categories of citizens, is legal capacity. According to Article 21 of the Civil Code of the Russian Federation, it begins at the age of 18.
A citizen can only be deprived of legal capacity through a court on the grounds that he suffers from a mental disorder (Article 29 of the Civil Code of the Russian Federation). Thus, the answer to the question - can a pensioner open an individual entrepreneur - is unambiguous. If there is no court decision regarding incapacity against him, then he has every right to become an entrepreneur.
