After registration, a private entrepreneur can choose from two types of taxation systems appropriate to their business. There are two of them - general and simplified. The latter is used more often, but there are certain conditions for switching to it, and in 2017, compliance parameters for the use of this system were also changed. In the article we will consider in detail what is called a simplified taxation system and who can use it. The main criteria of the STS will also be considered in this article.
Simplified tax system
The simplified tax system (STS), or the so-called “simplified system”, is the most suitable tax regime for start-up entrepreneurs. Simplified is popular not only because of the reduced tax burden, but also because of its simple, understandable and affordable tax accounting system. In addition to novice businessmen, experienced entrepreneurs who previously used other systems but decided that it would be more profitable to pay taxes on the simplified tax system will switch to the simplified tax system. With the "simplified tax" taxes become feasible and uncritical for entrepreneurs, which is important at first after opening your own business. STS criteria are most often applied in two areas.
Fields of application
One of the most common areas where a simplified system is used is:
1. Wholesale and retail sale of consumer goods.
2. The scope of household, rental, as well as consulting and other services.
3. Advertising, marketing, printing and printing.
4. Rental of equipment or real estate (short-term or long-term).
5. Promotion of creative activity (without affecting the field of copyright).
There are types of activities for the implementation of which the availability of state. licenses. These include:
1. Medicine and pharmaceutical industry.
2. Engineering and construction.
3. Sphere of fire fighting, work with explosive and chemical objects.
4. Hydrometeorological center.
5. Tourism area of activity.
6. Production and sale of devices that provide information security.
7. Private detective agencies.
8. The use of non-terrestrial modes of transport for passenger and cargo transportation.
9. Metallurgy.
10. Areas related to copyright infringement.
Kinds
STS is divided into two types depending on the calculation criteria:
1. The system "Income".
2. The system "Revenues minus expenses".
They differ in terms of rates, tax calculation algorithm and the size of the tax base. In any case, tax rates will be lower than in a conventional system. In 2016, the regional rate on the "Revenues" system decreased to 1% (from the initial 6%). These are the main criteria of the simplified tax system.
According to the simplified tax system, taxes must be calculated on the basis of income. Moreover, the simplified tax system is not always the most profitable taxation option. In some cases, it is more advantageous to use the UTII system (a single tax on imputed income), since with this system the rate is fixed and does not depend on income. The simplified tax system, of course, is not a reference, but nevertheless, it is quite easy to control the tax burden of a business. USN criteria without VAT will be considered below.
Favorable moments of using the simplified tax system are:
1. The exemption of the entrepreneur from the payment of personal income tax. It is replaced by tax at a rate of 1 to 6 percent of income or from 5 to 15 percent in the "Income minus expenses" mode. Land tax and insurance premiums are deductible under the "Income minus expenses" mode.
2. Exemption from VAT.
3. All past cash operations are saved upon transition to the simplified tax system.
four.Using the simplified tax system is able to reduce the advance payments accrued on a single tax.
5. Simplified reporting system (in comparison with other systems).
Besides the advantages, there are also disadvantages. They are as follows:
1. Not for all types of activities, the simplified tax system is beneficial.
2. When using the simplified tax system, there is no opportunity to expand the business (open new representative offices).
3. The system "Income minus expenses" does not include all expenses.
4. Even if the company suffers losses, the company is obliged to pay a minimum tax of 15 percent.
What else are the criteria for the simplified tax system?
System availability
Using the simplified tax system makes conducting small and medium businesses much easier. But for the transition to this taxation system, compliance with some parameters is necessary. 
These include the following:
1. For the first nine months of the reporting year (in which the transition to the simplified tax system is expected), the company's income should not exceed 15 million rubles.
2. The average staff of the company should not exceed one hundred people.
3. At the current value of assets, income cannot be more than 100 million rubles.
4. During the transition from the basic taxation system (general taxation system), income for nine months should not exceed 59,805 million rubles. At the same time, such restrictions are not provided for IP. An organization in which the share of third-party enterprises is less than 25 percent also has the opportunity to switch to a simplified system.
Consider the criteria for referring to NPO on the STS.
NPO can apply the general regime and the simplified tax system (STS).
The peculiarity of the simplified tax system is that when determining the income limit restricting the use of this taxation regime (60 million rubles), income obtained through targeted financing will not be taken into account.
It is believed that non-profit organizations do not have a financial result due to the fact that the activities carried out by them are not aimed at generating income, and there is no distribution of profit between the members of the organization. However, NPOs can carry out entrepreneurial activity, which means that profit or loss will be present.
The fact that such organizations do not use the profit received, but distribute it in accordance with the law, does not exempt them from the need to pay a single tax on the simplified tax system for the difference between income and expenses or income.
Who can’t use STS?
There are also situations when the transition to the simplified tax system is not possible. So, they will not be able to use the "simplified":
1. Enterprises with branches.
2. Organizations responsible for the financial sector, such as microfinance organizations (MFIs) or banks.
3. NPF (non-governmental pension funds).
4. Owners of pawnshops.
5. Private entrepreneurs involved in the production of excisable goods.
6. Private lawyers and notaries.
7. Companies with over 100 employees.
8. Individual entrepreneurs whose income is more than 100 million rubles.
The organizations listed above are not entitled to use the simplified tax system. When carrying out activities on the simplified tax system, bypassing the rules, the organization will have to switch to the basic tax payment system by paying taxes on this system. When an IP switches to the STS, the following criteria.
Actual changes
Since 2017, some significant changes have been made to the simplified system. They primarily concerned the volume of fixed assets acceptable for the use of the simplified tax system. The limit was increased to 150 million (previously the limit did not exceed 100 million rubles).
USN revenue criteria
Another parameter that has undergone changes in favor of the entrepreneur is the limit for switching to the simplified tax system. Since 2017, it amounts to 59,805 million rubles. In 2018, it is planned to increase this amount to 90 million. Since 2017, the coefficient for calculating the maximum income was canceled.
USN application criteria
Switching to the simplified tax system, you must continue to monitor changes in the conditions so as not to lose the right to use it. The changes also affected the timing of the application for the transition. An organization must submit an application for transfer to the Federal Tax Service before December 31 of the year preceding the period when tax is deducted under the simplified tax system. The application is executed in a certain form.
Transition from UTII
Entrepreneurs who have used UTII can switch to the STS from the first day of the month when the use of tax on non-imputed income has ceased to be relevant for them. That is, from 2017, the transition to simplification from UTII is possible immediately after refusing to use the latter. Mandatory is the notification of the tax service of the intention to change the tax system.
STS criteria are pretty simple.
Transition to STS
Transition to a simplified tax system can be done by new entrepreneurs who have just opened their own business, or experienced businessmen using other systems. Within 30 days after registration of the IP, it is necessary to send a notification to the tax service at the place of registration. To do this, a statement is drawn up, regulated by the order of the Federal Tax Service of Russia, which defines the system of simplified tax system that you have chosen for your business. The amount of tax payable depends on the choice of the simplified tax system ("Revenues" or "Revenues minus expenses").
Application deadline
When switching to the simplified tax system from another system, you need to submit a statement to the tax service no later than December 31 of the current year. The statement should contain information on the company's income for the past nine months, the composition of the company employees and the value of residual fixed assets. The same sequence of actions is observed when changing the simplified tax system.
Criteria of reference to the simplified tax system must be followed.
When switching from a general system to a simplified system, a notification is filled out with an indication of the selected STS system and is sent to the Federal Tax Service. To switch from a general system to a simplified one, it will be necessary to restore VAT on goods that have not yet been used (in stock), which are not charged for “simplified”. It will be possible to apply the simplified tax system starting January 1 of the next year.
How to bring income to the limit?
There are several methods by which you can observe the restrictions prescribed for the transition to the simplified tax system. They consist in bringing the company's revenues as close as possible to the required limit:
1. Deferral of payments. An agreement is concluded with the client with the terms of payment specified in it. In this case, this income is not taken into account when calculating the limit for switching to the simplified tax system.
2. Deferral of mutual settlement. An ideal way to adjust income to a limit, especially in the case of mutual debt between the entrepreneur and the supplier. However, it must be borne in mind that this method is risky, and experienced tax inspectors will definitely identify the discrepancy.
The criteria for the transition to the simplified tax system we reviewed. Another important point is the possibility of combining several taxation systems. At the same time, their own accounting and tax accounting procedures are compiled.
Requirements
When combining two systems, certain requirements must be met:
1. Income does not affect the calculation of imputed tax.
2. Various objects of taxation.
3. When using the simplified tax system, the organization is free from accounting.
The distribution of income and expenses depends on the sequence of operations and the amount of income from different types of activities of the enterprise. Thus, to combine different tax systems, it is necessary to divide the income for each of them. It is also necessary to further separate goods, employees and property.
Income and expense
When applying the simplified tax system, the concept of income and expense is of primary importance. Income is the addition of the benefits of an economic plan, expressed in monetary terms.There are two types of income, tied to the main activities of the organization, namely - received from sales and non-operating income.
What incomes are not taken into account?
When calculating taxes on the simplified tax system, far from all types of income are taken into account. The following articles are not taken into account:
1. Received as a result of an imputed tax company.
2. Received as dividends.
3. Received as a percentage of bank deposits and securities.
A more complete list of income not accounted for in the simplified tax system is contained in article 251 of the Tax Code of the Russian Federation.
Costs are also divided, depending on the core business of the organization, into sales and non-sales. If the company has made its choice in favor of calculating the system "Income minus expenses", then it needs to carefully analyze all expenses.
Types of expenses
The types of expenses that are taken into account when calculating under the simplified tax system are strictly limited by tax legislation. They consist of the following items:
1. The cost of paying salaries to employees of the organization, including tax fees and various contributions.
2. The costs of the material order.
3. The costs of goods (stationery) necessary for ensuring the life of the company, as well as postal expenses.
4. Advertising costs, etc.
Tax officials carefully check the items included in the costs, as this item can significantly reduce revenues to the state budget. The criteria for using the simplified tax system can be specified in the tax.
Advertising costs are one of the most difficult items to control. This type of cost is subdivided according to the legislation into standardized and non-standardized. The latter when calculating the tax base are fully taken into account. These are expense items such as advertising in the media, the production of light boxes or advertising campaigns. Normalized costs should not exceed 1 percent of the organization’s revenue.
If the company has not paid or has not fully paid the tax on the simplified tax system, it faces a fine of up to 20 percent of the amount. If the tax was not paid intentionally, the amount of the fine increases to 40 percent. To avoid imposing fines, it is necessary to fill out and submit a tax return to the tax service in a timely manner. Failure to pay a fine, in turn, may result in criminal liability.