Since 2015, tax legislation has introduced a zero rate for individual entrepreneurs using the simplified taxation system (STS) or the patent taxation system (PTS), i.e., they have the opportunity not to pay taxes.
The so-called “tax holidays for individual entrepreneurs” have been introduced.
What is the essence of this innovation?
According to adopted federal standards, starting from January 1, 2015, legislators of constituent entities of the Russian Federation can establish a zero rate for first registered individual entrepreneurs, who have chosen the tax system of either the simplified tax system or the PSN and carry out their activities in such areas as:
- production;
- social;
- scientific;
- provision of household services to the population.
At the same time, the types entrepreneurial activity, which will relate to the areas of activity listed above, are established by the relevant laws of the constituent entities of the Russian Federation. And if your regional authorities have not decided to introduce a zero rate, then this means there will be no tax holidays for individual entrepreneurs in your region.
Moreover, “tax holidays for individual entrepreneurs” are introduced from the moment of registration and are valid only for two years if the activities of the individual entrepreneur are not interrupted. Here it is important not to forget that registration as an individual entrepreneur should really be the first, and not repeated, as many individuals who were previously individual entrepreneurs think.
If you have been an entrepreneur before
If you carried out entrepreneurial activity a long time ago, then stopped it, and now want to register as an individual entrepreneur again, then the “tax holiday” will not apply to you.
Moreover, if you registered for the first time after January 1, 2015, but the regional law introducing “tax holidays for individual entrepreneurs” has not yet been adopted, then you will also not be able to take advantage of the right to tax exemption.
For example, you first registered as an individual entrepreneur in March 2017 and plan to provide household services to the population. If, at the time of your registration as an individual entrepreneur, a constituent entity of the Russian Federation had not adopted a law introducing a “zero rate”, then you will not be able to apply “tax holidays” in 2017, and even later.
How to determine in advance whether the entrepreneurial activity of an individual entrepreneur relates to household services for the population or not
If you are a beginning individual entrepreneur and are trying to decide on the type of activity that you want to carry out and fall under the “tax holiday” for individual entrepreneurs in 2017, then you need to:
- First of all, familiarize yourself with the All-Russian Classifier of Types of Economic Activities. By the way, when filling out an application for registration as an individual entrepreneur, you must also indicate the code of the type of activity or several codes, if you plan to carry out several types, from this Classifier. And today the classifier is new. This is OK 029-2014 (NACE REV. 2);
- select from the Classifier required type activity that you will carry out and determine the code for this type of activity (at least 4 digital values);
- check the presence of this type of activity in the list of those types of activities for which your regional authorities have introduced tax holidays for individual entrepreneurs in your region;
- indicate the code of the selected type of activity in the application for registration as an individual entrepreneur and be exempt from paying tax for 2 years if the selected type of activity is subject to “tax holidays”.
For example, let's say you want to start a shoe repair business. Then, using the above Classifier, it can be established that the code for this type of activity will be 95.23 “Repair of shoes and other leather goods.” And this type of activity is included in section “S. Provision of other types of services" in:
- class 95 “Repair of computers, personal consumption and household items”;
- subclass 95.2 “Repair of personal and household items;
- group 95.23 “Repair of shoes and other leather goods.”
Moreover, you can see a decoding of the type of activity you are looking for, i.e. what the group includes. For example, the group that included the type of activity we found includes:
- repair of footwear and leather products: boots, shoes, suitcases and other similar products;
- heel heel;
- shoe coloring.
Thus, using the Classifier, you will be able to more accurately determine the type of activity that you plan to carry out and find out whether “tax holidays” apply to this type of activity or not.
What conditions are established for individual entrepreneurs during the “tax holiday”?
As a rule, when introducing a new norm that eases the burden on the payer, legislators always impose some conditions or restrictions. With the introduction of “tax holidays” for individual entrepreneurs, there were also restrictions accompanying this norm:
- at the end of the tax period, the share of income received from activities in the above areas (i.e., which are subject to a zero rate) must be at least 70% of the total income received by the individual entrepreneur. This is the main condition that individual entrepreneurs who use both the simplified tax system and the PSN must comply with for 2 years. This is especially true for those individual entrepreneurs who combine modes. For example, if an individual entrepreneur has registered for the first time, but in addition to activities on the simplified tax system with a zero rate, he also applies UTII;
- regional authorities may set restrictions on number and income.
What happens if an individual entrepreneur ceases its activities during the “tax holiday”?
If an individual entrepreneur during a “tax holiday” ceases to operate before the expiration of the second year of application of the zero rate or violates other restrictions established by regional laws, the individual entrepreneur will be obliged to pay tax at real rates for the year (tax period) in which these restrictions were violated.
It's no secret that starting your own business requires... individual entrepreneur not only determination, but also a huge investment of effort, time and money. Even with a certain amount of initial capital, the first steps are not easy, especially during periods of unstable economic conditions.
That is why the state developed special program to support start-up businessmen, one of the most important components of which is tax holidays.
What are tax holidays: main points
In short, the essence of tax holidays is that for a certain period of time a person registered as an individual entrepreneur has the right not to pay taxes to the state budget. However, this relief can only be applied if certain conditions are met.
- An individual entrepreneur must be officially registered for the first time with government authorities and control bodies;
- Taking advantage of temporary tax exemption is possible only when applying a simplified tax regime and the patent system. No other tax schemes provide this right;
- No less than 70% of the total profit of the individual entrepreneur must come from the sale of goods, performance of work and provision of services that are subject to a zero tax rate (see the next paragraph);
- An individual entrepreneur must engage in either production, social, or scientific projects, and, specific types activities for which a grace period may be applied are left to local authorities.
Municipal laws have the right to introduce additional restrictions for individual entrepreneurs who are entitled to tax holidays on one or more of the following positions:
- number of registered personnel;
- maximum amount of income during the year;
- according to certain OKVED codes.
IMPORTANT! A tax benefit is granted to an entrepreneur only if he became one for the first time after the adoption of the relevant regional law.
If an individual entrepreneur who has the right to receive a tax holiday accidentally violates at least one of these points, he is obliged to report this to the territorial tax service to recalculate tax rates. In case of voluntary and timely notification of the Federal Tax Service, he will be released from administrative liability, which occurs if the tax authorities themselves discover that the individual entrepreneur does not comply with the requirements.
Important! Sometimes individual entrepreneurs use two tax systems simultaneously, for example. In this case, they must keep separate tax records for them in order to have a clear understanding of whether the individual entrepreneur complies with the parameters that the law requires for applying the zero rate (for example, by income level).
Attention! If an individual entrepreneur did not immediately decide on the tax regime and automatically switched to the OSNO, on which the application of a zero tax rate is impossible, then in the future he has the right to change it to the simplified tax system or the PNS. This must be done within a two-year period, since this is how long the tax holiday lasts.
Re-opening an individual entrepreneur to obtain the right to tax holidays
Many individual entrepreneurs who have been conducting their commercial activities for a long time are scratching their heads over how to optimize the amount of tax payments. In connection with the advent of tax holidays, some have a logical question: is it possible, and then reopened, and thus gain the right to apply a zero tax rate?
The temptation, of course, is great, but the law clearly states that if a person was previously registered as an individual entrepreneur, then he will no longer be able to take advantage of the zero rate. All information about individual entrepreneurs, including former ones, is stored in a special database, so check the background of any individual registering with the state as an individual entrepreneur is as easy as shelling pears for tax authorities.
Nuances of tax holidays
In cases where an individual entrepreneur has the opportunity to take advantage of tax holidays, he must remember the following subtleties:
- zero rate on tax simplified tax system and the PNS does not exempt from other tax payments (for example, land or transport tax, patent fees, insurance payments, etc.);
- even if an individual entrepreneur is on tax holiday, he still needs to pay social contributions in Pension Fund and FFOms for its staff, because these contributions do not apply to taxes, which means that vacations do not apply to them;
- regular reporting is required, even if it is zero;
- Tax holidays are valid for a maximum of two years. That is, if the individual entrepreneur did not immediately switch to “simplified” or a patent, then the elapsed time from the moment of registration will be lost for preferential use.
Important! Each region independently determines some features of the application of tax holidays, including the maximum period and some other conditions. Details on these must be clarified with local tax authorities.
The specifics of the law on tax holidays in a specific region can be found out by contacting the tax office at the place of registration of the individual entrepreneur. Be careful: exactly at the place of registration of the entrepreneur, and not at the place where he conducts his activities! You can call the hotline at the Federal Tax Service, where they are authorized to advise people on this issue.
Types of activities in Moscow covered by tax holidays
FILES
How to apply for tax holidays
The algorithm for obtaining the right to apply a zero tax rate is quite simple:
- You need to register as an individual entrepreneur and, subject to the required scope of activity, immediately submit a notice of transition to the “simplified tax” or PNS;
- Submit a package of certain documents to the Federal Tax Service;
- During the grace period, you need to submit reports to the simplified tax system with zero rates;
- Using the patent system, the value of the patent should be reported as zero.
Who controls the application of tax holidays?
The right to provide tax holidays is reserved for the regions of the Russian Federation. As mentioned above, they have the right to make their own adjustments to the application of the zero tax rate, including changing its conditions, period and determining specific types of activities that fall under this possibility. In addition, local authorities may place restrictions on the use of tax holidays by individual entrepreneurs depending on their income level.
Limits on income and number of employees
According to the law, the maximum amount of income at which tax holidays can be applied is limited to 60 million rubles. If the profit of an individual entrepreneur is higher than this figure, then he will no longer be able to take advantage of the zero rate. The situation is exactly the same with hired employees - according to general rule, their number should not exceed 100 people.
It is important to remember that these indicators may change depending on the wishes of regional legislators, but no more than 10 times downward.
Attention. If any conditions of tax holidays are violated, no matter federal or regional, the individual entrepreneur loses the right to apply them.
Insurance premiums for individual entrepreneurs during tax holidays
You'll have to do the same pay any other taxes, who do not understand the simplified taxation system or the patent.
Validity periods of tax holidays
The last tax holidays were introduced in 2015 due to difficulties in the economic sphere of the Russian Federation. Their effect will be valid until 2020. This means that entrepreneurs who register for the first time this year have the right to them for another two years, that is, exactly the two tax periods required by law - the maximum “vacation” period.
It is possible that holidays for entrepreneurs will be extended after 2020 if significant prerequisites arise for this.
Based on the above information, we can conclude that tax holidays are quite possible for individual entrepreneurs who have just registered with the state. However, in order to obtain the right to them, a number of necessary conditions must be met, and violation of at least one of them immediately deprives the right to apply the zero tax rate. However, this benefit is very important part state program to support small and medium-sized businesses and, without a doubt, in the coming years it will be in great demand among young entrepreneurs involved in these areas.
Tax holidays appeared in our country since 2015.
Their goal was to encourage entrepreneurs to open their own businesses in difficult times of crisis and to bring illegal businessmen out of the shadows.
But this benefit has its own criteria. Who can count on tax holidays, and do they apply to all areas of business?
Definition of concepts. Legislative regulation of the issue
Tax holidays appeared on January 1, 2015. At the legislative level, this concept was enshrined in Federal Law N 477-FZ. Tax holidays are a period of benefit for entrepreneurs, during which they are exempt from paying taxes.
This system has its advantages and disadvantages.
On the positive side Tax benefits include the following:
Among shortcomings The following programs can be distinguished:
- Restrictions on the categories of entrepreneurs and activities that are eligible to receive tax benefits. For example, businessmen engaged in trade cannot count on benefits.
- Local authorities regulate the provisions for the provision of benefits and prescribe the conditions for compliance.
- The validity period is two calendar years, but in the end it turns out that the entrepreneur enjoys benefits for a shorter period of time.
What areas of business activity does the benefit apply to?
Activities that are eligible for zero tax are strictly regulated by law.
It can be spheres:
- scientific;
- social;
- production.
Which small business entrepreneurs can take advantage of tax deferment?
Tax holidays are granted only to those entrepreneurs who are registered for the first time.
Each registration of an individual entrepreneur is carried out in connection with the businessman’s tax identification number. It is thanks to this that the tax service can easily track whether a person previously had an individual entrepreneur or not. Therefore, an attempt to close the old case and open a new one in order to receive benefits will not succeed.
the federal law did not provide holidays mandatory for all regions. Each subject is given the right to introduce the system on time at its own discretion.
In addition, entrepreneurs who are engaged in trade. For other types of activities, each region compiles its own list.
In order to qualify for tax holidays, the entrepreneur is obliged comply with the following conditions:
- The profit percentage must be at least 70% of income.
- Limits have been established for individual entrepreneurs operating under a simplified system.
- There are restrictions on the number of hired workers.
Which tax regimes are subject to zero tax?
Tax holidays can be applied to businessmen who work as under simplified and patent taxation system.
To apply for a benefit, a businessman, when registering with the tax office, must, on the day of registration apply for a patent. If an entrepreneur decides to work under a simplified system, he is obliged to notify the control authorities about this within a month from the date of registration.
If an individual entrepreneur works under UTII or OSNO, it will not be possible to receive benefits. 
Validity
Tax holidays have been introduced until 2020.
They spread their action in the first two years of work entrepreneurs. The tax period is established in accordance with the Tax Code of the Russian Federation. This means that if an entrepreneur registered in November, then his calendar year will still end on December 31st. Therefore, it is best to start a business at the beginning of the year. This will make it possible to enjoy benefits for much longer.
For entrepreneurs who work according to patent tax system, the benefit is valid for two calendar years. The tax period in this case is the validity period of the patent. If it is less than a year, then the vacation period will end earlier than can be established. This type is unfavorable for patents with a short term.
What payments will you still have to pay?
During tax holidays, entrepreneur not exempt from all taxes. Individual entrepreneurs are not exempt from property duties and payments for each employee. Holidays do not apply to insurance premiums for employees and the entrepreneur himself.
Thus, during the tax holiday period, taxes on UTII, trade tax and property taxes on individuals and legal entities must be paid.
Regional features of provision
Tax holidays for entrepreneurs are in effect differently in different areas. One of the very first regions to adopt the law was the Penza region.
Penza region
If IP in the Penza region works simplified , then his activities should be related to:
At patent system Businessmen who provide repair services for shoes, radio equipment, and clothing will be able to take advantage of the benefit. Each subject establishes its own lists of activities. You can always obtain information about the complete list from the tax office.
Sverdlovsk region
In 2015 Sverdlovsk region joined the entities providing entrepreneurs with zero tax rates.
To this end, two laws were adopted at the local level. 31 types of activities are taxed under simplified taxation and 15 under patent taxation at a rate of 0%.
Moscow and St. Petersburg
IN Moscow The legislative act was adopted on March 25, 2015. To receive benefits, entrepreneurs must meet the following conditions:
- The number of employees should not exceed 15 people.
- Under the simplified system, tax holidays apply to entrepreneurs who work in the following areas: education, healthcare, scientific developments, social services. The manufacturing sector includes all those involved in toys, clothing, food, appliances, medical supplies, machinery, and leather goods.
- For the patent taxation system, the following types of activities are distinguished: repairing, sewing and painting shoes, repairing leather, fur, repairing household appliances at home, childcare, translations, printing activities, excursions.
Tax benefits for individual entrepreneurs in the city St. Petersburg started operating in 2016. For entrepreneurs, there is a maximum revenue limit of 30 million rubles. For those who work under a simplified taxation system, benefits apply in the following areas:
For the patent system, the list of activities is the same as in Moscow, but the production of dairy products and bread baking is also added.
Stavropol region
Authorities Stavropol Territory do not establish additional requirements for entrepreneurs.
At the level of local legislation, a list of areas of activity was adopted for both the patent and simplified taxation systems. The services of cooks at home and sports training have been added to the patent IP.
Crimea
We will separately highlight tax benefits in the Republic of Crimea. To attract investors, the Republic practices two-year benefits on property, land and transport.
But this applies only to investors; tax holidays have not yet been introduced for individual entrepreneurs in Crimea.
Take advantage some tips to get the most out of the tax holiday:
- Entrepreneurs of both the patent and simplified taxation systems, engaged in activities in the domestic, social and scientific spheres, can take advantage of tax holidays. Please note the holiday period! They last for two years, according to the calculation tax service. To get the maximum benefit, do not open a sole proprietorship at the end of the year.
- An entrepreneur can take advantage of tax holidays only once in his life. If he closes his individual entrepreneur and opens a new one in order to receive benefits, he will not succeed.
- Do not forget that an entrepreneur is not exempt from paying insurance premiums, property taxes and wages during the tax holiday.
- Despite the fact that under the simplified system you do not need to pay tax, the declaration must be submitted annually.
The rules for providing tax holidays for entrepreneurs are described in the following video:
Good afternoon, dear individual entrepreneurs!
Many people open individual entrepreneurs in the hope of receiving the so-called “tax holidays,” which were introduced back in 2015. Someone somewhere heard something =), and then they are terribly surprised when they are denied this benefit.
Let me note right away that the idea of tax holidays is really very good. But, as always, there are many nuances that you need to keep in mind in order to get this tax break.
So, let’s take a brief look at this topic of concern to many in the “Question-Answer” format for 2018-2020. By the way, you can watch my video on this topic, or read the text version below:
1. Who can receive tax holidays in 2018-2020?
It is necessary that the following conditions for individual entrepreneurs be simultaneously met:
- IP in your name must open for the first time. That is, if you close your current individual entrepreneur, and blue eye If you come for the right benefit, as a newly opened individual entrepreneur, they will refuse you. That is, This benefit applies only to those who register as individual entrepreneurs for the first time. Moreover, no more than two years have passed since the registration of the individual entrepreneur, and the registration itself took place AFTER the entry into force of the REGIONAL law on tax holidays.
- You must work in one of these three areas: industrial, social, scientific.
- Moreover, the share of such activities should be NOT LESS THAN 70% of the total income of the individual entrepreneur.
- In your region a local law must be passed, which allows tax holidays.
Moreover, regional authorities may introduce the following restrictions:
- By number of employees;
- According to the maximum income per year;
- They will prescribe specific activity codes according to OKVED, which are subject to tax holidays.
Thus, an individual entrepreneur who wants to receive a tax holiday must carefully study local laws to understand whether his activities qualify for this benefit or not.
You should also find out from local laws which specific OKVED codes fall under this benefit. They must be clearly defined, since the concepts of scientific, industrial or social sphere can be taken to mean almost any type of entrepreneurial activity =)
All this can be found out at your tax office, where you registered as an individual entrepreneur.
2. Have tax holidays been introduced in all regions of Russia?
No, not in all of them. The fact is that this benefit is left to the discretion of local authorities. And these holidays are not yet in effect in all regions of the Russian Federation. But in Moscow they have already been introduced:
In order for them to be introduced in your region, local authorities must first pass a law (clause 4 of Article 346.20 and clause 3 of Article 346.50 of the Tax Code of the Russian Federation, Federal Law No. 477-FZ of December 29, 2014).
Important: You can count on tax holidays only if you have opened AFTER the entry into force of the relevant REGIONAL law.
Naturally, if an entrepreneur is “tied” to the tax office by registration, then benefits must be expected and claimed in the region where the future individual entrepreneur is registered. And not where he will operate.
How can I find out if there are holidays in my area?
The easiest way is to call the Federal Tax Service hotline.
There is now a toll-free line from the Federal Tax Service, where your questions will be answered:
Which individual entrepreneur taxation systems will be covered by the holiday?
- Individual entrepreneur on the simplified taxation system (Simplified or simplified taxation system)
- Individual entrepreneur on PSN (Patent taxation system)
Other taxation systems are not specified in the law, which means they cannot count on this benefit.
What happens if I go beyond the tax holiday limits?
A reasonable question. Indeed, you will immediately lose this benefit as soon as you violate one of the conditions given above. If an individual entrepreneur loses the right to apply a zero rate, then according to:
In case of violation of restrictions on the application of a tax rate of 0 percent established by this chapter and the law of the subject Russian Federation, an individual entrepreneur is considered to have lost the right to use it and is obliged to pay tax at the tax rates provided for in paragraph 1, 2 or 3 of this article, for the tax period in which these restrictions were violated. (Clause 4 introduced by Federal Law dated December 29, 2014 N 477-FZ)
That is, if your benefit is considered invalid, then pay taxes for the entire period when it was declared invalid for you as an individual entrepreneur.
And paragraphs 1,2,3 read verbatim as follows:
1. If the object of taxation is income, the tax rate is set at 6 percent. 2. If the object of taxation is income reduced by the amount of expenses, the tax rate is set at 15 percent. The laws of the constituent entities of the Russian Federation may establish differentiated tax rates ranging from 5 to 15 percent, depending on the categories of taxpayers. (as amended by Federal Law No. 224-FZ of November 26, 2008) 3. By the laws of the Republic of Crimea and the federal city of Sevastopol, the tax rate can be reduced in the territories of the relevant constituent entities of the Russian Federation for all or certain categories of taxpayers. For the periods 2015-2016, the tax rate can be reduced to 0 percent. For the periods 2017 - 2021, the tax rate can be reduced: - to 4 percent if the object of taxation is income; - up to 10 percent if the object of taxation is income reduced by the amount of expenses. At the same time, tax rates cannot be lower than 3 percent and can be differentiated depending on the categories of taxpayers. Tax rates established in accordance with this paragraph by the laws of the Republic of Crimea and the federal city of Sevastopol cannot be increased during the periods specified in this paragraph, starting from the tax period from which the reduced tax rate is applied. (Clause 3 introduced by Federal Law dated November 29, 2014 N 379-FZ)
How long will the holidays last?
From January 1, 2015 to December 31, 2020. That is, you can count on another three years of this benefit. To be precise, they will be in effect in 2018, 2019 and 2020. But for a particular individual entrepreneur, tax holidays can last no more than two tax periods from the date of registration as an individual entrepreneur.
Maybe they will be extended after 2020, but this moment there are no such prerequisites. Stay tuned for blog updates, if anything changes, I will write about it.
What about contributions to the Pension Fund? Do they need to be paid?
Yes need.
It is a big mistake to think that if an individual entrepreneur is on vacation, then there is no need to pay mandatory contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and for your employees). Need to.
Let me emphasize once again that this is a tax benefit under the simplified tax system (or PSN). And contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund do not apply to taxes.
Do you need to submit reports?
Necessarily. Even if you have zero reporting, you need to submit it. And I repeat once again that tax holidays for individual entrepreneurs do not mean that reporting can be completely ignored.
Pay all contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and your employees), submit reports. Everything is as usual.
How do you even get this benefit? Do I need to write some kind of statement?
Good question. Since tax holidays are introduced at the regional level, you need to contact your tax office for information on such issues. Let me remind you once again that this is an inspection that is “linked” to the registration address in your passport.
To summarize:
- You should clarify the question of whether tax holidays apply in your region;
- Find out specific OKVED codes who fall under this benefit;
- Your individual entrepreneur must be on the simplified tax system or PSN;
- You must comply with all restrictions prescribed by law;
- Rent out all tax reporting, despite the fact that it will be zero.
Well, there may be other nuances that may arise during your work.
P.S. If you have additions to this information, you can write them below.
Other important changes for 2017 for individual entrepreneurs:
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Dear readers!
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- All examples are for 2019
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The slowdown in economic growth and falling incomes in the primary industries are forcing people to think about opening their own business. With high loan rates, it is not always easy to start your own business, develop it, and pay tax 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 stimulation of 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 instruments used. 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 don’t charge.
- 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 certain categories of individual entrepreneurs and small businesses.
Amendments to the Federal Law at the end of 2014 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 constituent entities inform on their own information resources about the start dates for 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 in the Perm region 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.
The application of the legal act from the position of reducing the tax burden 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 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 the rate and the rate at 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 in 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, and others must be paid in full and on time.
Tax holidays for persons on a patent (PSN)
The patent system for paying mandatory payments works successfully in different regions. This is due to the convenience of payment and reducing the likelihood of making mistakes.
The grace period provides similar benefits as in the case of the 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 does not exceed 10% in certain regions. 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. 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:
- 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), but the time frame for possible use of the current opportunity is somewhat wider - until 2020.
In some cases, the opportunity to use the benefits provided may be divided into two annual periods, where, if there are no violations in the first year, the program is extended for the next period.
Violations of established rules identified by regulatory authorities lead to deprivation of the right to use established benefits. In this case, the standard rate of 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. You should definitely contact your local authorities in advance 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.
Find out about taxes in 2019 from the video.
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