Is there a law that provides tax exemption for start-up entrepreneurs? In accordance with the Federal Law of March 7, 2017 No. 25-FZ “On Amendments to Part Two Tax Code Russian Federation", individual entrepreneurs have the opportunity to receive tax exemption. This law adopted in order to attract individuals engaged in entrepreneurial activity unofficially, into the country's economy, and support for small businesses. If after reading this article you have additional questions about the procedure for exempting starting individual entrepreneurs from paying taxes, then you can.
Conditions for release
Tax exemption for start-up entrepreneurs is possible if a number of conditions are met:
- The individual entrepreneur must be registered for the first time after 2017;
- the taxation system should be simplified or patent;
- field of activity (OKVED) industrial, social or scientific.
Additions and restrictions
The above law gives the authority to introduce tax holidays to the discretion of regional authorities. Not all regions adopted a positive decision to introduce a 0% tax rate, since this innovation deprives the regional budget, according to preliminary forecasts, of 1 to 2 billion rubles per year. Regional authorities have the power to set restrictions for individual entrepreneurs by number of employees, maximum income and codes economic activity.
This law does not apply to individuals who previously had the status of an individual entrepreneur.
Exemption from taxes for start-up entrepreneurs (that is, the introduction of tax holidays) does not relieve individual entrepreneurs from the obligation to pay insurance contributions to the Pension Fund, Social Insurance Fund, transfer personal income tax (NDFL) and other taxes.
Despite the opportunity not to pay taxes, rent tax return in form 3-NDFL and keeping a book of income and expenses is still necessary. In a situation where an individual entrepreneur carries out several types of economic activities, he needs 70% of his income to come from the preferential sector. Otherwise, he will not be granted tax exemption.
In accordance with the Federal Law, tax holidays will last until 2020, but an entrepreneur can be exempt from paying taxes only for a period of up to 2 years.
Exemption from taxes for start-up entrepreneurs provides an opportunity for small businesses to develop, helps them adapt to the market, which will subsequently have a positive impact on general economy countries.
The slowdown in economic growth and falling incomes in the primary industries are forcing people to think about opening their own business. At high stakes loans, it is not always easy to start your own business, develop it, paying taxes to the fiscal authorities and contributions to funds.
In these conditions, the government and legislative bodies have launched a mechanism that can provide significant support to young companies.
One of the most effective methods of stimulation business activity is the provision of tax holidays.
The practice of using a popular economic measure has found its application in our country.
What are tax holidays
Tax holidays have certain advantages compared to other used tools. Taking into account possible reductions in budget revenues, the authorities are actively using this opportunity.
Among the measures to reduce tax burden highlight:
- Liberation from a separate type taxes. More often than others, they do not charge income tax.
- Reducing the rate of individual payments for a certain period.
- Using various combinations of these two measures.
For example, the cancellation of an individual payment for 2 years is replaced by a 50% reduction in payment for the subsequent 3-year period.
Providing a grace period allows you to quickly receive an influx of investment into the country and create additional jobs. The selectivity of the incentive measure can be aimed at creating innovative products, or increasing production in a particular area of business, such as agriculture.
Among the possible negative indicators, economists cite possible distortions in pricing, or the use of the grace period as a tool for evading payment of other types of taxes.
Tax Holiday Law 2019
Taxation is regulated on the basis of Federal Law No. 477 - FZ. Changes in the regulatory document concern the establishment of a special regime for individual categories individual entrepreneurs and small businesses.
Amendments to the federal law at the end of 2014, it made it possible to introduce tax holidays in certain regions of Russia already in 2015. For the remaining territories, the grace period will begin during 2019.
Administrations of the subjects on their own information resources inform about the terms of commencement of use and the conditions for applying the provisions of the regulatory document.
For example, if in the Pskov region tax benefits have been applied since 2015, then for the Perm Territory the decision to apply the Federal Law was made at a meeting of the Legislative Assembly only on March 19, 2016.
Individual regions are given the right to independently determine incentive measures. This is due to the specifics of the region, the structure of the market, where market revitalization is required in certain areas of business.
General conditions of tax holidays
The selective application that independent regions may make must be consistent with the main provisions of the document.
Application legal act from the position of reducing the tax burden, it provides for the following categories of legal entities:
- individual entrepreneurs (IP) who use a simplified system for paying mandatory contributions in their activities;
- legal entities using the patent taxation system in their work.
The business must be registered for the first time after the law comes into force.
When planning to use the provisions of a regulatory document, you should not resort to re-registration or changing the form of organization of the enterprise. It will not be possible to achieve inclusion in the category of preferential business entities.
In the case of applying a preferential system for paying mandatory contributions, the entrepreneur is not exempt from maintaining reporting documentation and submitting it to the tax authority. This applies to both individual entrepreneurs with a reduced tax rate and with a rate of 0%.
Find out who may be exempt from taxes in the next three years from the video.
Tax holidays for individual entrepreneurs using the simplified tax system in 2019
Registration of an individual entrepreneur in accordance with the noted conditions does not allow every private business to count on a reduction established rates. Additional conditions must be met.
The company's field of activity must be in one of the following niches:
- scientific direction;
- social sphere;
- production activity.
The main provisions for determining the direction of the company’s activities are defined as:
- The main field of activity falls into one of the three specified in the Law.
This provision is determined by the profit margin for the priority segment of activity in the amount of at least 70%. - An open branch of business, along with highly efficient production, cannot be considered an object for the application of preferential rates.
To apply a tax rate of 0%, only three types of mandatory deductions are used - on profit, on value added and on property.
It is logical that the main “social” obligations, such as payments to the Pension Fund, social insurance, land tax and others must be paid in full and on time.
Tax holidays for persons on a patent (PSN)
Patent payment system mandatory payments successfully operates in different regions. This is due to the convenience of payment and reducing the likelihood of making mistakes.
Grace period provides similar benefits as in the case of a simplified tax payment system. Payment of transport fees, patents, excise taxes and traditional deductions will be mandatory.
An entrepreneur, before choosing a patent taxation system, should analyze the mechanism of the Federal Law in a particular region. Thus, in the Altai Territory, the possibility of tax holidays concerns specifically the patent system.
And in some regions, only individual entrepreneurs with a simplified system receive benefits:
- Saint Petersburg;
- Primorsky Krai;
- Volgograd region;
- Krasnodar region.
The indicator for small business organizations that took advantage of the grace period opportunity in certain regions does not exceed 10%. This is due to the limited scope of business and the start of the current law.
Tax holidays for LLCs 2019
One of the types of ownership of small or medium-sized businesses is Limited Liability Companies. When considering these organizations for the right to receive tax benefits, the right to participate in the Federal program was potentially recognized.
Recent changes to the regulatory document do not allow the use of a “zero” rate on some mandatory payments for LLCs. Legislative bodies refer to the lack of an effective mechanism that will allow tracking the re-registration of organizations with this form of ownership.
Benefits for small businesses
To receive a simplified system for making mandatory payments, small businesses must meet a number of mandatory conditions:
- IN this year register the company as an individual entrepreneur.
For a specific region, the launch of the mechanism based on the Federal Law should be clarified. - Establish the possibility of paying taxes under a simplified system or through a patent system.
- Fix a minimum share of 70% in case of receiving income from several areas of activity with a predominance of the selected areas - scientific, social or production.
What restrictions can be set?
When using tax holidays, it is not enough to just take advantage of the right to receive a grace period. The owner of the enterprise must also take into account some of the restrictions that are established for program participants.
During the provided period, possible changes in the type of activity must be agreed with local authorities. The grace period is usually set for two years (two tax periods), however, the time frame for possible use of the current opportunity is somewhat wider - until 2020.
In some cases, the possibility of using the provided benefits may be divided into two annual period, where if there are no violations in the first year, the program is extended for the next term.
Violations of established rules identified by regulatory authorities lead to deprivation of the right to use established benefits. Wherein standard rate mandatory payments will be charged for the entire calendar year in which violations were detected.
The right to establish additional restrictions is granted to local authorities. Taking into account the characteristics of the region, individual normative document within the region these rules will be negotiated.
It is known that in a number of subjects of the federation such a limitation is the number of hired workers, the number of similar enterprises in certain areas of activity. Be sure to contact the local authorities authorities and clarify the conditions for including an entrepreneur in the block of tax benefits.
The development of the Federal Law made it possible to revive small and medium business in all regions of Russia.
The number of registered private enterprises meeting the established requirements has increased.
It is possible that the practice of applying current legislation will be adjusted if the first stage is successfully implemented.
Learn about tax holidays for small businesses in 2019 from the video.
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“Holidays” is a good word, but “tax holidays” is even better. This word promises a period free from study or activity, and in relation to businessmen - temporary relief from the tax burden. But vacations, in their classical sense, are given to those who are already tired of studying or righteous labors, and tax holidays are provided to newcomers who have just completed state registration.
Tax holidays were discussed quite widely; they were also mentioned by the President in. Expectations from their introduction were serious, so we even advised our users to postpone state registration of LLCs and individual entrepreneurs until we received clarity on this issue.
Who can get tax holidays?
However, the much-awaited law did not become a New Year's gift to potential businessmen. Firstly, it turned out that tax holidays were provided only for newly registered individual entrepreneurs, and for LLCs they were not introduced for a reason that was surprising for business, but completely understandable for bureaucrats. Officials simply have not found mechanisms to prevent the mass registration of new companies with the goal of zero taxation.
Registration of individual entrepreneurs is carried out using the individual’s tax identification number, which does not change throughout his life, so it is easy to track those who de-registered and registered again in order to be subject to tax holidays. But closing an existing company and opening a new one, which will be subject to tax holidays, is simple, because the TIN of organizations is different. Thoughts were expressed to link the possibility of registering one “preferential company” to specific founders, but they did not have time or did not want to develop the corresponding mechanism.
So, we repeat, tax holidays are only available for newly registered individual entrepreneurs. Tax holidays do not apply to entrepreneurs already operating at the time the regional law comes into force.
Secondly, the federal law did not introduce tax holidays throughout the Russian Federation, but only gave the regions the right to introduce them. The regions were in no hurry to do this, so as not to lose the expected tax revenues from new individual entrepreneurs. The estimated “shortage” of taxes due to the proposed benefits for Russia as a whole is 250 billion rubles. Within state budget not much, but for some regional budgets even 1-2 billion rubles is a serious amount. Although, it would seem, what difference does it make - after all, tax holidays do not reduce existing tax revenues, but give residents of the regions the opportunity to open new businesses, get on their feet and then replenish the treasury. But still, a significant part of the regions have introduced zero taxation on their territory for new entrepreneurs.
Thirdly, tax holidays apply to certain types of activities in production, services and scientific activities. Trade is not subject to tax holidays! Each region sets for itself specific types of activities indicating the OKVED code to which this benefit will apply. In addition, local laws may establish other restrictions and requirements for individual entrepreneurs “on vacation.”
Fourthly, tax holidays can only be received by individual entrepreneurs who have chosen the simplified taxation system and special taxation system. This benefit does not apply to the imputed regime and OSNO.
Fifthly, although the validity period regional laws tax holidays are established until the end of 2020, a specific individual entrepreneur can receive them for a maximum of 2 years (the law refers to this as a tax period). Relatively tax period You also need to know the following: it also includes the year in which the individual entrepreneur was registered. For example, the law on tax holidays in the Krasnodar region came into force on May 8, 2015, which means an entrepreneur who registered after this date can work for zero rate until the end of this year plus next year, that is, less than two years.
In total, only individual entrepreneurs who comply with the following requirements can receive a zero tax rate for a period of up to two years:
- those who first passed state registration as an individual entrepreneur after the entry into force of the regional law on tax holidays;
- intending to carry out activities from the list given in the regional law;
- those who have chosen tax simplified tax system mode or PSN and switched to a zero rate immediately after registration.
For the convenience of paying taxes and insurance premiums, we recommend opening a current account. Moreover, now many banks offer profitable terms for opening and maintaining a current account.
What other requirements must individual entrepreneurs operating under tax holidays fulfill?
This list of requirements for beneficiaries is not exhausted; individual entrepreneurs “on vacation” will be monitored, and in case of violations, they will be deprived of the opportunity to use this benefit.
The share of income received by individual entrepreneurs from activities for which tax holidays have been introduced must be at least 70% of all income. If an entrepreneur combined “preferential” types of activities with others, for example, production and trade, and received less than 70% of income from the preferential type of activity, then all his income will be taxed at the regular rate of 6%. Individual entrepreneur who has issued various patents for different types activities, including those that are not included in the regional law, will have to keep separate records of income.
Local laws on tax holidays may set their own income limits for those working on the simplified tax system. So, in 2018, the limit for simplifiers was set, in general, at 150 million rubles. Regions can reduce this limit, but no more than 10 times. There are also restrictions regarding hired workers. Moscow entrepreneurs, for example, will be able to hire no more than 15 people, and not only on the PSN, but also on the simplified tax system (according to general rule, on a simplified system you can have up to 100 employees).
Individual entrepreneurs operating under the tax holiday regime do not have any benefits when paying insurance premiums for themselves and for their employees. An entrepreneur’s contributions for himself in 2018 are at least 32,385 rubles, and they must be transferred even if there is no income from the business.
The base of regional laws on the introduction of a zero tax rate for new individual entrepreneurs is often updated, in addition, each of them has its own validity period. Current texts can be found on the Ministry of Finance website or in legal reference systems. In addition, you can find out all the details about the zero rate from the Federal Tax Service at your place of registration.
On the eve of the new year, we will tell you about the most significant changes in legislation that await individual entrepreneurs in 2016. How much will contributions to the Pension Fund increase? Will taxes go up? Read about it in our article.
Insurance premiums to the Pension Fund in 2016
From January 1, 2016, the minimum wage will increase to 6,204 rubles. Based on this, you will need to pay 19,356.48 rubles to the Pension Fund, provided that your income for the year does not exceed 300,000 rubles. If in 2016 you earn more than this amount, then by April 1, 2017 you will have to transfer another 1% of income that exceeds 300,000 rubles. Contribution to the Mandatory Fund health insurance will be 3,796.85 rubles.
Change of BCC for insurance premiums
Please note that codes will change from the beginning of the year budget classification for insurance contributions to the Pension Fund of Russia, interest and penalties on contributions to the Social Insurance Fund (Order of the Ministry of Finance dated June 8, 2015 No. 90n). For individual entrepreneurs’ contributions to the Pension Fund there will be one code, and not two, as previously planned (Order of the Ministry of Finance dated December 1, 2015 No. 190n). Be careful when filling out payment orders.
Reduced rates for the simplified tax system in 2016
As part of the implementation of the anti-crisis plan of the Government of the Russian Federation, from January 1, 2016, regions have the right to reduce the tax rate on a “simplified” basis with the “Revenue” object. The tax rate in this special regime can be set in the range from 1 to 6% (Article 346.20 of the Tax Code of the Russian Federation).
Since 2015, regions can already set a rate of 5 to 15% for the simplified tax system with the object “Income minus expenses”. The rate depends on the type of activity and category of taxpayer (Federal Law dated July 13, 2015 No. 232-FZ).
Deflator coefficient for UTII
When calculating imputed income basic yield multiplied by the annually established deflator coefficient (K1). Despite the previously planned increase, this coefficient for UTII in 2016 will remain the same - 1.798 (Order of the Ministry of Economic Development of the Russian Federation dated November 18, 2015 No. 854).
Tax holidays for individual entrepreneurs: an important addition
Since 2016, constituent entities of the Russian Federation have the right to establish a zero tax rate for newly registered individual entrepreneurs who provide household services. Benefits apply only to new entrepreneurs with a simplified system and a patent.
Personal income tax in 2016
From January 1, 2016, individual entrepreneurs with employees will have to submit quarterly to the tax inspectorate a calculation of the amounts calculated and withheld by them according to the new form 6-NDFL (Article 230 of the Tax Code of the Russian Federation). Reports must be submitted by April 30, July 31 and October 31. The annual payment must be submitted no later than April 1 of the following year.
Per serve false information for 2-NDFL the fine will be 500 rubles. If the data is not submitted on time, then for each complete or less than a month Delay will be subject to a fine of 1,000 rubles. Also when late submission reporting tax service will have the right to suspend all transactions on the entrepreneur’s accounts (Federal Law dated May 2, 2015 No. 113-FZ).
To annually report information on each employee, as now, employers will report in Form 2-NDFL. With a staff of less than 25 people, certificates can be submitted to the tax office in paper form.
For non-payment of fees - to prison
In 2016, entrepreneurs will be held criminally liable for non-payment of contributions. According to the bill, the Criminal Code of the Russian Federation will include new article, providing for punishment for individuals who evade paying insurance contributions to government off-budget funds. Fines and criminal liability are provided for understatement tax base for calculating contributions, as well as for submitting false calculations on forms 4-FSS and RSV-1 and others.
Individual entrepreneurs face a fine of up to 300,000 rubles or imprisonment for a period of one year. (Bill No. 599584-6 on amendments to Article 199 of the Criminal Code of the Russian Federation).
There will be no checks
The President signed a decree that prohibits routine inspections of small businesses for three years. The moratorium will be in effect from January 1, 2016 to December 31, 2018. The ban does not apply to fire, radiation and environmental supervision, as well as control in the field of protection of state secrets and in the field of use of atomic energy.
Transition to online cash registers since 2016
According to the latest data, starting from 2016, entrepreneurs and companies will be able to switch to new online cash registers at will. It is likely that replacement of the CCP will become mandatory from July 2017.
Amendments to legal norms tax law, coming into force in 2016, quite a lot. And most of them affect small businesses and individual entrepreneurship in particular. New main odds rates, increase tax deductions, changes in the reporting procedure for a number of taxes and clarification of controversial issues of individual legal acts, these and other changes are in this article.
Changes for individual entrepreneurs in 2016 are quite numerous. Most of them affect the procedure for calculating and paying taxes, providing benefits and submitting reports on certain payments. A number of changes affected the information submitted to extra-budgetary funds, the specifics of bringing to responsibility for violations when submitting this information, etc. Some of the changes also affected special tax regimes. We will reflect all the innovations in tables for better perception.
| Before April 1 of each year, the employer submits information about the income of its employees in Form 2-NDFL | Since April 2016, an entrepreneur with hired personnel is required to submit, in addition to information in Form 2-NDFL, a calculation of the amounts income tax, calculated and withheld from its employees. The calculation is submitted before the first day of each month in Form 6-NDFL for all employees in general. |
| Delivery format In paper form, if the individual entrepreneur has no more than 10 people subordinate to him Electronically, if the number exceeds 10 people | Reporting can be submitted electronically if there are more than 25 employees. |
| Responsibility for late delivery calculation, as well as for distortion of data entered into it. So, for each month of delay the fine will be 1000 rubles, and for incorrect data - 500 rubles. for each “incorrect” document. Also, tax authorities will have the authority to suspend an entrepreneur’s account if he is late in submitting the calculation by more than 10 days. |
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| Income tax payment date The moment of crediting funds to the account of the employer or employee | The next day after payment of income. For sick leave and vacation - until the end of the month in which they were paid |
| Deadline for reporting information about the impossibility of withholding personal income tax from an employee’s income | |
| For training and treatment Can only be submitted via Tax Inspectorate. The employer does not provide this benefit. | You can obtain it from the tax authority or from your employer. |
| Social calculation
The amount of income at which benefits are paid is 280 thousand rubles.
| Marginal Revenue after which the deduction is not paid equal to 350 thousand rubles 12 thousand - for parents and adoptive parents; 6 thousand - for guardians and trustees |
| Income tax |
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| To recognize property as depreciated, its value must be at least 40 thousand rubles. | The cost has been increased to 100 thousand rubles, |
| Penalty Refinancing rate - 8.25 | The rate is equal to key rate Central Bank and equal to 11%. Accordingly, the amount of penalties will be increased |
| If an individual entrepreneur issues an invoice to a counterparty with a allocated amount of VAT, the amount of tax received is reflected in income, and the amount issued is reflected in expenses | There is no need to reflect VAT in income and expenses |
Separately, it is worth mentioning the changes affecting special taxation regimes: simplified tax system, UTII and Patent.
| Possibility of rate reduction Regional authorities can reduce the rate on the “income minus expenses” object to 5% | |
| Tax holidays In the period from 2015-2021. Regional authorities may set the simplified tax rate at 0%. The benefit can be used by entrepreneurs who register in this capacity for the first time or within 2 years after registration. And those leading activities in the social, scientific or industrial spheres. Tax exemption can be applied for no more than 2 years. | To earlier specified areas activities that exempt a first-time registered entrepreneur from paying tax for 2 years, another one has been added: provision of household services to the population |
| Deflator coefficient | |
| Limit limit income to switch to the regime
To be on mode:
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| New form declarations | A transitional declaration form has been developed for entrepreneurs applying a 0% rate |
| Bid | Regions can reduce the rate to 7.5% |
| List of activities for which the regime can be applied 43 types of activities | |
| Deflator coefficient | |
No less important are the changes affecting the order of interaction between the entrepreneur and Pension Fund.
| Reporting According to the RSV form - 1 | To the current reporting on accrued and paid contributions to health insurance and compulsory medical insurance, reporting on each of the employer’s insured employees has been added. The reporting form has not yet been developed. The document must be submitted starting from 04/01/2016 every month no later than the 10th day. For failure to provide information, as well as their distortion tax authority a fine of 500 rubles may be imposed. for each employee. |
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| Minimum size wages |
Limit for contributions to the Pension Fund
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Having briefly examined the main changes affecting small businesses, let us summarize the above:
- The deflator coefficient rates for the simplified tax system and the patent have changed. By UTII rate remained at the 2015 level;
- The refinancing rate and the minimum wage have changed;
- Regions received the right to reduce tax rates according to the simplified tax system “income minus expenses” and according to UTII;
- The procedure for applying for deductions for treatment and education has changed and payments for disabled children have increased; the income limit for receiving a deduction for children has also been raised;
- An obligation has been introduced to submit a monthly calculation of the amounts of income tax calculated and paid from employees and information about insured persons working for individual entrepreneurs;
- The patent system has been supplemented with 16 types of activities