In addition to standard types of taxation, the Tax Code offers a number of necessary modes aimed at simplifying reporting documents and calculating tax liabilities for each of the areas of activity. To stimulate the producers of the economic sector, the scheme of unified agricultural tax, that is, a single agricultural tax, which has a reduced rate and other advantages, can be applied.
Consider CES what it is in simple words.
What is the UTN?
Agriculture is one of the most risky areas of activity, as the general indicators of losses and profits can be affected by both economic numbers and unpredictable factors, for example, catastrophic weather conditions. The use of agricultural tax makes it possible not only to reduce the amount of monetary liabilities, but also to apply losses from committed activities to lower tax rates for the coming time periods.
Private Features
The payment plan of the Unified Social Tax Act gives the subjects the opportunity to replace the list of independent types of money transfers with a single tax. In particular, the payment of agricultural tax eliminates the need for tax on property of institutions, profits, as well as VAT.
Such a right appears only in cases when special conditions are observed, since the USHN strategy can be applied far from every institution working in the field of agriculture. It is important to understand what it is CES in simple words.
According to Article 346 of the Tax Code of the country, the opportunity to make the transition to the transfer of fees under the USCH appears when correctly fulfilling the following requirements:
- The taxpayer is obliged to carry out the production of agricultural products, for example, crop production, animal husbandry and so on. Legislation allows for the use of such a regime by entities that produce aquatic biological resources.
- The possibility of transferring to the CES regime appears exclusively in the case when the share of the volume of income from agricultural production is at least seventy percent of the total revenue received by the enterprise.
- The application of the ESCN scheme does not occur automatically, but after sending a notification to the inspection of the Federal Tax Service.
It is necessary to focus on the fact that in addition to agricultural producers, often the UHF scheme can be used by an institution that provides the necessary services for entities of the agricultural sector of the economy. But the activity on processing agricultural products cannot fall under the preferential structure of the unified agricultural tax.
Upon completion of the transition to this type of taxation, the agricultural producer remains liable to pay insurance premiums for employees of the enterprise. That is what it is - in unified words in simple words.
Legal regulation
Legislative control of the CES regime operates within the framework prescribed in Chapter 26 of the Tax Code of the Russian Federation. This section interprets the rules for applying this scheme, especially for keeping records of expenses and income, as well as the procedure for making advance payments and the final tax amount.
In addition, a number of supplementary acts determine the requirements for the declaration form of the Unified Social-Industrial Tax and the appropriate procedure for its completion.In particular, the current model of the declaration, which was approved by the Order of the Federal Tax Service at the number MMV-7-3 / 384 as amended in 2016.
Important advantages over other tax schemes
Despite the fact that in some respects the legislative regime of the Unified Social-Industrial Tax is identical to various taxation schemes, it has undeniable advantages.
In particular, settlements on the payment of unified agricultural tax are made at a rate of six percent of the total profit, which is reduced by the amount of annual expenses. A more similar situation is provided only by the regime of the Simplified taxation system, although a six-percent rate is used on it without taking into account the expenses incurred.
In addition, the possibility of applying the loss indicator based on the results of the year to transfer them to the upcoming reporting periods is recognized as a separate advantage of the USCT regime. When in a specific period the agricultural producer worked at a loss, he has the right to reduce the amount of tax obligations in the coming years. For such purposes, the amount of losses is indicated in the annual declaration on the single agricultural tax.
Thus, with the unified income tax, income and expenses are necessarily taken into account.
Tax base and objects
For the CES scheme, the tax base recognizes the value of income for the reporting period, reduced by the volume of all expenses. The formation of profit and expense indicators is done taking into account such nuances as:
- indicators of income and expenditure actions of individual entrepreneurs are indicated by a growing total in the book of accounting, and institutions record profits and expenses in accordance with the general rules of tax and accounting;
- information on profit and loss for the first six months of the year is used to calculate advance payments, and the totals serve as the basis for filling out the annual declaration on UST;
- losses from previous years reduce the tax base of the agricultural producer, provided that all these data are included in the annual declaration. To do this, a book of income and expenses is maintained at the Unified Social-Economic Academy.
It turns out that the object of taxation is the profit made by the producer of agricultural products, reduced by the amount of expenses incurred.
The subjects of the scheme
Entrepreneurs and institutions involved in the production of agricultural products are equated with those. In order to take advantage of the CES regime, an entity is required to indicate its production as part of its only or additional activity in the USRIP and USRLE. What is the deadline for USCN? About it further.
What are the requirements for the transition to the USCH?
Such a transition is carried out on the basis of the voluntary desire of the producer in the field of agricultural products, which should be recorded in a notice sent to the tax authority. The stages of the transition to the USCH imply some features, namely:
- application of the CES regime is carried out at the beginning of the year;
- the agricultural producer sends a statement to the inspection of the Federal Tax Service, which must be done no later than December 31;
- in the event that, according to the results of the year, the amount of income from agricultural production will not exceed seventy percent of the total profit, then even the submitted application will not give the right to receive the opportunity to use preferential conditions under the Unified Social Tax.
The document confirming the transition to the Unified Social Tax Tax Office is executed in writing or using the electronic service of the Federal Tax Service in the personal account of the taxpayer. In order to confirm that the application has been accepted and the subject has been transferred to the regime of the unified social-industrial tax, the tax authority sends a notification.
How to correctly complete the declaration at the USCH. Let's figure it out.
Payment and Settlement
Indicators are calculated independently on behalf of the producer in the field of agriculture. In this case, all information on expenditure and income transactions of the calendar year is taken into account. According to the results of the first six months of activity, the amount of the advance payment is calculated, this figure should be transferred to the budget by July 25 of the current year.
Based on the results of the calendar year, the declaration on the Unified Agricultural Taxes is completed, it must be submitted to the Inspectorate of the Federal Tax Service no later than March 31 of the current year. In the same period, the final tax amount is paid, for this purpose, the calculated figure for the declaration should be reduced by the total amount of the advance payment. In the event that a loss is reflected in the annual declaration, then the previous payments made in advance will be taken into account during the calculation of tax liabilities in the coming time periods.
Insurance contributions
Even upon completion of the transition to the taxation regime of the Unified Agricultural Taxes, the agricultural producer still has the obligation to calculate and pay personal income tax (PIT) to employees, in addition, he must make insurance contributions to the Pension Fund of the Russian Federation. For these purposes, the subject of agricultural production is required to be registered with the organization of the Pension Fund on a standard basis.
A tax return for UST should be filed on time.
As part of the calculation and payment of insurance premiums, the standard requirements for reporting periods are taken into account, for example, for such as a year, quarter, nine months and a half year, including the required insurance premium rates. Benefits for reducing the amount of insurance transfers by the tax regime of the USCH are not provided.
What is the benefit of using the single agricultural tax of the single agricultural tax?
Arguing about the complexity of the tax burden, we can safely say that the Unified Economic Taxes has advantages both over the general taxation system and over the simplified one. If we compare the tax base with the rate of the system, we can see that although the indicator for the unified social tax and the simplified tax system are the same, the tax under the simplified scheme will be higher, because it does not take into account production costs. It is possible to correlate the UST for tax burden only with a simplified system, provided that the minimum possible value is equal to six percent, which is far from universal. A comparison of the single taxation system with the general taxation system is not worth it at all, since the tax rate of the taxation base with a similar tax base is more than three times higher, and this is not taking into account the need to pay VAT.
In the case of CES, accounting for income and expenses is an important condition.
Governmental support
It is no secret that state support for producers in the agricultural sector is currently one of the main priorities chosen for the effective development of the domestic economic policy of our country. As a matter of fact, it is possible to consider CES as one of the key tools of the state strategy. Summing up, it should be noted that this measure was developed as a stimulating function for the development of both agriculture and the domestic economy as a whole.
At the moment, the special tax regime of the Unified Agricultural Taxes is not very popular among agricultural producers, but it is already starting to gain momentum.
Conclusion
Thus, an unambiguous conclusion suggests itself, because it turns out that a unified system of economic taxation is more than very favorable for the payer, but only if it meets all the necessary requirements of the legislation of the Russian Federation.
We looked at CES in simple words. What it is is now clear.