Any citizen of the Russian Federation who has become an adult can open his own business. Moreover, he will also have to calculate and pay taxes and various fees himself. The article is about what taxes are paid individual entrepreneur (IP), about their diversity and characteristics.
Who is available as an individual entrepreneur?
As an individual entrepreneur, any citizen of Russia who has reached the age of majority can be registered. You need to register with the tax office, which oversees the address of the place of residence indicated in the passport. However, before this, it is imperative to find information on what taxes an individual entrepreneur pays.
The registration procedure is simple to the extreme: if a citizen comes in person and has a passport with him, then he only needs to write an application according to the established model, provide a copy of the passport and a document that can confirm the fact that the state duty has been paid. If the documents are submitted by a representative of such a citizen, you will have to certify a copy of the passport and the signature on the application in a notarial order.
The tax inspectorate is not interested in whether the applicant already has his own business and what his profitability will be. The main thing is that an individual entrepreneur pays taxes regularly and on time.
Taxes paid by the individual entrepreneur as an individual
Taxes of an individual entrepreneur can be divided into several categories.
The taxes that he pays as an individual:
- Personal income tax - if he receives income not related to activities in the business field.
- Transport tax - if he owns the transport registered on it.
- Property tax - if he owns a house, cottage, apartment or other real estate of this type.
- Land tax - if he owns land.
- Water tax - if he owns a well or a well that is objects of taxation.
What taxes does an individual entrepreneur pay as a businessman?
Taxes of an individual entrepreneur, depending on whether he is engaged in business or not:
- PIT - if he has employees on the staff.
- Single tax on the simplified tax system - replaces several taxes (income tax, personal income tax, property tax) and is paid if business is carried out.
- Single imputed activity tax (UTII) - is paid in any case, even with the complete inaction of the entrepreneur.
- Patent - acquired for the right to work in the chosen field.
- Unified agricultural tax (CES) - it is used only by agricultural producers.
In addition to the above taxes, an individual entrepreneur may pay:
- VAT - if he performed transactions subject to this tax.
- Excise taxes - if he was involved in the circulation of goods subject to excise taxes.
Special taxes
The taxes of an individual entrepreneur in Russia can also be specialized when they are tightly connected with the industries in which this IP is engaged. Among them:
- The already mentioned UAS.
- Mineral extraction tax (MET).
- The fee charged for the use of objects of the animal world (hunting, most often).
- Water levy fee biological resources (fishing).
- Printing production.
- Lottery tax.
"Simplified" - two types
Most often, citizens after receiving information about what taxes an individual entrepreneur pays, choose "simplification". In this case, a single tax is paid, which, as mentioned above, is able to replace income tax, personal income tax and property tax. Such an entrepreneur does not pay VAT, but only until the moment he begins to carry out operations subject to this tax.
An entrepreneur who prefers the simplified tax system has the right to choose an object. An individual entrepreneur taxes can choose from two options:
- He can withhold tax on the difference arising at the end of the year between income and expenses. The upper limit of the tax rate is established by law and is 15%, the lower - 5%. Within this framework, the regions are free to set its value themselves. In practice, such an object is called "income minus expenses".
- He can withhold tax on all income received by him during the tax period. The rate here is unchanged for everyone - 6%. The name of the object is “income”.
Single imputed income tax and patent
In the Tax Code, there are regimes when the payment of taxes by an individual entrepreneur is carried out in a fixed amount, which is tied to property that helps the businessman to earn income, or to the type of activity. There are two of them - UTII and a patent.
UTII suggests that an individual entrepreneur pays imputed tax in any case, even if he did not receive income. Its size is determined by local authorities, and it is rigidly tied to the type of activity being carried out and to the conditions in which this activity is conducted. This tax is also unique in that even the complete inaction of the entrepreneur does not exempt him from payment, which should be carried out on a quarterly basis.
A patent is simpler because, having paid once for the right to carry out a certain type of activity, the individual entrepreneur does not draw up reports, does not make additional payments.
Excise taxes
When listing taxes of an individual entrepreneur, excise taxes should be mentioned. This type of budget payment is specific and is associated with the implementation of certain types of activities, for example, such as the production of alcoholic beverages, the sale of fuel and lubricants.
It is noteworthy that the payment of excise taxes may well be combined with the “simplification”, since the STS has no restrictions for such activities. But the patent and UTII are completely excluded: the legislator deliberately spread these regimes and activities related to excise taxes in different angles.
When does an entrepreneur switch to a common system?
The taxes of an individual entrepreneur have a unique property: if the size of a businessman’s income for a year exceeds a certain limit, they transfer to a different quality and quantity.
So, to stay on the “simplified” it is necessary to fulfill the following conditions:
- The staff should be less than 100 people.
- Annual income should be less than 60 million rubles.
- The residual value of the property should not be more than 100 million rubles.
If the individual entrepreneur fails to stay within this framework, then it is automatically transferred to the general taxation system when the income tax on individual entrepreneurs becomes diverse and complex. Have to pay already forgotten VAT, income tax, personal income tax and report differently.
When does an individual pay personal income tax?
The taxes of an individual entrepreneur are inherently related only to the activities of a businessman. But he should not forget about such a tax as personal income tax. Ignoring it can lead to sanctions by the tax authorities.
The fact is that all transactions for the sale of real estate, vehicles, obtaining shares in companies and other tax services will be considered separately. And such income will be taxed at a rate of 13%, not 6 or 15%. Moreover, since last year, the tax service has been intensively establishing information interaction with other state bodies (for example, the Cadastral Chamber), which provide data on transactions.And if an entrepreneur fails to file a tax return on his last year’s income in a timely manner, then serious penalties may be imposed on him.
Insurance premiums
Taxes of an individual entrepreneur do not include yet another very important payment requiring significant cash. These are insurance contributions to the Pension Fund, MHIF and the Social Insurance Fund, and all individual entrepreneurs are required to pay them.
Until this year, it was necessary to pay contributions in a fixed amount; at present, a new component equal to one percent of the excess of the income of an individual entrepreneur over an amount of 300 thousand rubles has been added to the permanent payment. True, it applies only to persons applying a simplified system. The rest pay the fixed amount.
