In Russia there is a fairly flexible tax system. Thanks to it, every entrepreneur can choose the most profitable tax payment scheme. This leads to the fact that business in the country is developing very actively. Now many are thinking about which taxation system to dwell on - UTII or a patent. Next will be described in more detail about each option. After a thorough study of tax payment schemes, it will be possible to determine the taxation for a particular business.
UTII is ...
To begin with, we will figure out what each variant of the development of events represents. For a long time everyone has known UTII. This is a single tax on imputed income. It is also called the "impute."
UTII or patent - which is preferable for an entrepreneur? With a single tax on imputed income, an LLC or individual entrepreneur pays only 1 tax. He, as you might guess, is called imputed. No more tax payments are due. In addition to paying UTII, a citizen must make insurance contributions.
Patent
The patent system of taxation in Russia appeared not so long ago. But she began to immediately attract businessmen.
UTII or patent - what to stop at? The patent system of taxation (POS) does not provide for the payment of any taxes during work. IP pays for the patent in advance. During calculations, the estimated profit for a given period will be taken into account. PSN can be issued for a minimum of 1 and a maximum of 12 months.
Tax rates
Which is better - UTII or patent? For IP, the solution to this issue plays a huge role. Therefore, it will be further described in more detail about the features of each taxation regime.
It is important to understand what the tax rate is in a particular case. UTII provides for the payment of 15% of imputed income, while PSN allows you to pay only 6% of the estimated profit. Despite this, sometimes UTII is less than personal income tax on a patent. This feature should be considered when choosing a tax payment regime.
Tax payment
How is the settlement with the state in both cases? Which is preferable to choose - UTII or patent?
With "imputation" quarterly reporting takes place. Together with her, the organization must pay taxes. The full amount of the payment shall be paid to the state treasury no later than the 25th day of the month following the reporting one.
In the case of the patent, everything is somewhat different. There are 2 options for the development of events:
- Patent filed for 6 months or less. In this situation, you need to pay tax no later than 25 days after the start of the document.
- PSN is used for more than six months. Then a third of the amount must be paid in the same way as in the previous case. The balance (2/3) must be paid to the treasury no later than 30 days before the patent expires.
If you do not want to constantly pay taxes, it is recommended to choose a patent. But this is far from the only feature worthy of attention. In some cases, UTII is a more profitable regime.
Limitations
The main thing is to carefully study all the pros and cons of each scenario. Patent or UTII - which is more profitable? There is no definite answer to this question. In each region, PSN and "impute" have different sizes.
When choosing taxation for individual entrepreneurs, it is necessary to take into account some restrictions. It is not always possible to dwell on a particular system.
For example, UTII applies only to certain types of activities. A patent can be issued for almost any business.
UTII have the following features:
- on income "imputation" is not limited;
- can be applied only in individual activities (it needs to be specified in each region separately);
- UTII cannot be used if the number of employees exceeds 100;
- The transition to the new tax system is possible only from the beginning of the new year.
The patent also has limitations. Namely:
- annual income should not exceed 60 million per year if combination with other taxation systems is applied;
- You cannot file a patent with a company with more than 15 employees.
In both cases, the entrepreneur may not use CT. This makes life much easier.
Reporting
UTII or patent - which is better? A huge role for business is accountability. What is envisaged for "imputation" and PSN in this area?
UTII requires quarterly reporting from the entrepreneur. The tax return is filed before the 20th day of the month following the reporting one.
With PSN, no reporting is required. IP initially pays personal income tax for the period of validity of the document, after which it is exempted from reporting. You do not need to indicate your income.
You should also pay attention to another feature of these tax systems. Thinking about what is preferable - UTII or a patent, it is necessary to clarify: "imputation" exempts from the need to account for income and expenses. All relevant data is entered in the declaration.
With a patent, an IP is exempted from filling out the 3-NDFL form. Instead, you will have to keep a record of income and expenses in a specialized journal.
Tax reduction
What is the difference between UTII and a patent? Based on the foregoing, we can conclude that these modes are slightly similar to each other. But they also have a significant difference.
UTII allows you to reduce taxes on insurance premiums made. This means that an individual entrepreneur can deduct 100% of the amount of contributions to the PFR and the FSS for themselves and 50% of them, but paid for employees. Thus, the tax is reduced.
With PSN, tax reduction is not provided. A citizen is obliged to make deductions to extra-budgetary funds according to general rules. And the tax is paid to them in full.
Transition Methods
How to switch from UTII to a patent and vice versa? Some features of these procedures should be considered.
For example, the fact that with the "impute" you can apply the new tax regime only from the new year. If a patent is used, IP can go to UTII after the patent expires.
The imputed tax requires an application for withdrawal from special treatment. This must be done no later than 5 days after the termination of the "imputation". In the case of a patent, it is not necessary to file an application for withdrawal from special mode.
The transition from a patent to UTII is carried out at the Federal Tax Service at the place of registration of a citizen as an individual entrepreneur. If it is necessary to change the "imputation" to PPS, you must contact the tax authority at the place of business.
The deadlines for submitting applications for switching to special mode also differ. When UTII must contact the Federal Tax Service at most 5 days after the start of the application of the tax system. PSN requires the submission of an application no later than 10 days from the date the patent begins. Patent requests are filed annually.
In the rest, the system of transition to the new tax payment regime remains the same - the IP must write a corresponding application and submit it to the Federal Tax Service.
Pros and cons of UTII
What is better to use for entrepreneurship - UTII or patent? From all that was said earlier, we can distinguish several advantages and disadvantages of each mode.
Let's start with UTII. Its positive aspects:
- simple tax reporting;
- lack of features in the calculation of taxes;
- no dependence on the real income of the individual entrepreneur;
- the possibility of tax reduction due to insurance premiums;
- You can not use cash registers.
But there are also drawbacks to this regime. For example:
- strict restriction on areas of application;
- from 2018 they plan to abolish the imputed tax;
- fixed tax with minimum income;
- the need to file a tax return.
Now it is possible to imagine what “imputation” represents as a whole. Each businessman is able to decide for himself how this regime is beneficial for a particular activity.
Advantages and disadvantages of PSN
UTII or patent - which is preferable for individual entrepreneurs? PSN also has its pros and cons.
For example, a patent has the following advantages:
- low tax rate;
- independence from income;
- flexible terms of application of the document;
- No need to file a tax return;
- exemption from CT.
The disadvantages of PSN are often identified as follows:
- restrictions on the activity allowing the application of a patent;
- the possibility of registration only IP;
- the inability to reduce taxes due to insurance premiums;
- tight framework in the number of employees and income;
- in some regions, the cost of a patent can be very high.
Now it’s clear what constitutes a patent in Russia as a whole. What conclusions can be drawn from the foregoing? What is more profitable - a patent or UTII for IP? Everyone decides this question for himself, calculating his strengths and capabilities.
Decide on the choice
So which is better - UTII or a patent? For IP, this question remains an eternal mystery. Indeed, in general, these tax payment systems are similar to each other.
To date, it is recommended to use "imputation" when possible. But in view of the upcoming cancellation of UTII, it is necessary to decide what to do in 2018. You have to choose between STS and PSN.
In general, when determining the tax payment regime, attention is required to:
- the number of employees;
- real and estimated company earnings;
- the need for filing declarations and accounting for income;
- the amount of taxes in a particular case.
Some entrepreneurs can use UTII on favorable terms, while someone is in the black with a patent. Therefore, it is difficult to unequivocally answer the question of which is better - UTII or a patent. Assessing the listed nuances, each individual entrepreneur must decide for himself which taxation regime to use.