Each individual entrepreneur uses a specific taxation system. The type of such payments depends directly on the specifics of the activity performed, on the presence or absence of hired force, and on many other points, which determine the tax system that a person has the right to use.
Individual entrepreneurship as a type of business allows you to use a fairly wide range of taxes. It all depends both on the circumstances and on the desires of the entrepreneur himself. But, as practice shows, in most cases, persons who are registered as individual entrepreneurs use a simplified type of taxation.
First of all, this fact is due to the fact that this type of payment greatly simplifies the conduct of economic activity. This fact is manifested in the abolition of the payment of other taxes, in the simplification of reporting to government agencies, etc. The purpose of the simplified type of taxation is to facilitate the activities and give the opportunity to develop for representatives of small and medium-sized businesses.
Simplified tax, like any other mandatory payment, has its own characteristics, which include the frequency of payments, their size, and reporting. Each of these points makes the simplified taxation system special and unlike other types of taxes.
What is the simplified tax system?
In general, when considering the issue of reporting provided under a simplified tax, first of all, it is necessary to briefly outline the very essence of such taxation. And so, a simplified type of taxes is a special system of mandatory payments provided by the state for carrying out entrepreneurial activities.
It can only be used if the entrepreneur meets all the necessary requirements. The legislator included the following:
- the presence of hired force for an individual entrepreneur should not exceed 100 people;
- the total profit of the entrepreneur for the year of operating must be less than 60 million rubles;
- the value of property that an entrepreneur uses to conduct economic activities cannot exceed 100 million rubles.
Only if each of these criteria is met, an individual entrepreneur has the opportunity to choose a simplified taxation system for himself when registering his activities, or switch to this type of taxes using a different payment system. It is worth remembering that the transition is possible only from the next tax period, that is, the year. The application itself must be submitted to the tax authority before December 31.
The simplified system has two subtypes. The first is Income. It is designed to deduct a 6% rate from the entrepreneur’s profit for a certain tax period. Second – Income – Expenses. This system means that a 15% rate is calculated from the difference between the entrepreneur’s profit and his costs. The choice of type is individual for each individual entrepreneur and is carried out voluntarily.
Most entrepreneurs are inclined to use such a taxation system due to the fact that there is no payment of taxes such as payments on income and value added. In addition, until recently, this list also included the entrepreneur’s property tax, but since 2015 this rule has been abolished. Today, individual entrepreneurs are required to pay this type of taxation. But the caveat is that before you despair, you should look at the regional property cadastres, which contain a list of property that is subject to taxation. Only if there is property there that the individual entrepreneur uses in his work, does it become necessary to pay tax on certain property.
Individual entrepreneur's report to the tax simplified tax system
Each entrepreneur who uses the simplified taxation system eventually comes to the question of which reports to submit under the simplified tax system. After all, every person, regardless of the form of taxation, is obliged to provide the tax authority with a certain list of documents provided for by law.
A report on the simplified tax system is the submission of a special document. Payers of simplified taxation will be required to report for the past 2014 using a new sample declaration designed for the simplified tax system. The new form contains more sections than the old one. If compared with the previous sample, the newly introduced declaration provides a detailed procedure for deducting each advance payment and makes it possible to include it in the total tax amount. Depending on which object is directly subject to tax, sections of the declaration will be filled out. For example, sections 1.1 and 2.1 are intended exclusively for those individual entrepreneurs who use the “Income” calculation system. And sections 1.2 and 2.2 are filled out by those individual entrepreneurs who use the “Income – Expenses” subtype of simplified taxation. This option for writing a declaration will significantly simplify the filling out process and reduce the likelihood of getting confused in the sections. The remaining changes are purely technical.
Reports on the simplified tax system are submitted annually. That is, a state-issued declaration is submitted to the tax authority annually. At the same time, all the data that is necessary to be included in such a document must be the annual report of the simplified tax system. The period from January 1 to December 31 in this case will be the reporting period, but it should not be confused with the deadline for filing a declaration with the tax service. Every entrepreneur has the opportunity to find a sample of such a document at the tax office or on the official website of the tax service. In addition, the declaration can be downloaded here (sample).
The report form for the simplified tax system 2015 must be submitted to the government agency by April 30. This is the main rule that must be observed when collaborating with the tax authority. In addition, it is worth remembering that late provision of such a document may entail the imposition of penalties. Today, the amount of the fine depends on whether the tax was paid before filing the return or not. In the first case, the sanction will be equal to 1,000 rubles, and in the second case it will be calculated as a percentage (5%) of the amount of unpaid tax. At the same time, such amounts are calculated for each month that was overdue. In this case, it doesn’t even matter whether the month has passed completely - it will be enough that the first day of the month has arrived.
Therefore, it is worth considering and providing for the most advantageous way to submit such a declaration. Today, an entrepreneur has the opportunity to provide a document in person, send it by mail or submit it through a proxy.
The first option is the most widely used, since it does not involve any additional actions. An entrepreneur just needs to fill out a declaration, take with him the original document confirming his identity (passport) and go to the tax service at the place of registration and accounting of his activities. The declaration is given to the tax officer. In this case, experts recommend making a copy of this declaration and asking the tax officer to put a mark on it stating that such a document was accepted by the tax authority. Such actions will provide the entrepreneur with evidence that the tax return was filed and that such filing was carried out on time.
The second option of submitting a document to the tax service is most often used by entrepreneurs who, due to certain circumstances, are located far from the tax authority at the place of registration and cannot submit a declaration on their own on time. Therefore, to submit a document, it will be enough to contact any post office. The declaration must be sent by registered mail to the address of the tax authority. Quite often, this option is chosen when an entrepreneur does not have time to submit a declaration to the tax authority by the end of the working day on April 30. In this case, you can also use postal services and for timely submission it will be enough that the sending date on the envelope is April 30. In this case, it is absolutely unimportant that the letter was sent after the tax office was closed. The fact of filing on April 30 remains undeniable.
In addition, there is another option - submitting a declaration through a proxy. This method is the submission of a document by a third party. If an entrepreneur does not have the opportunity, or even the desire, to independently go to the tax service at the place of registration, then he has every right to assign these responsibilities to another person. This is done with the help of a power of attorney - a special document in which the entrepreneur indicates that he gives a certain person the right to represent his interests in the tax service, in particular when filing a declaration.
With the help of this power of attorney and the original identification document, the authorized person submits a declaration to the tax authority. Regarding trustees, this can be either an employee or an acquaintance of the entrepreneur. In addition, today there is a fairly wide range of companies on the service market that offer not only legal support for the activities of individual entrepreneurs, but also representation of his interests in government bodies, in particular in the tax service. To do this, the entrepreneur signs an agreement with such an organization, and also issues a power of attorney to confirm the right to represent his interests. Next, the person, for a fee stipulated by the agreement, submits a declaration for it.
In addition, technology does not stand still and the tax service has begun to use an electronic resource in order to simplify the process of providing reporting documentation. This principle of operation is that the entrepreneur communicates with the tax authorities using telecommunications. That is, the annual declaration is submitted to the relevant inspectorate using the Internet. Each individual entrepreneur who uses such transmission channels is required to have a specific program for sending this kind of documentation. The main ones are an electronic signature, a program for encrypting results, a program for decoding input correspondence. You can purchase such a product from special companies that have a license to engage in this type of activity.
Advance report under the simplified tax system
Quite a lot of entrepreneurs are wondering what reports under the simplified tax system need to be submitted quarterly, monthly, or once every six months. The answer to this question is clear – none. In 2015, the reporting of an entrepreneur consists only of filing an annual declaration. No other documentation needs to be provided. The book of income and expenses, which previously was mandatory to submit to the tax authority, is also no longer submitted. It will be enough for an entrepreneur to simply store such a document in a stapled form. There is no longer any need to certify it to the tax service, as was the case before.
Quite often, the provision of a report is confused with the payment of taxes itself. It is worth noting here that mandatory payments themselves must be made quarterly. That is, an entrepreneur is obliged to pay taxes every three months for conducting his activities. At the same time, he is obliged to make such payment before the 25th day of the first month following the quarter. In addition, such actions require absolutely no reporting. When filing a declaration, they also calculate the amount that needs to be paid, taking into account the first three quarterly installments, because the fourth is paid immediately before filing the declaration.
Let's try to show this principle with an example. And so, the individual entrepreneur made a profit of 56,000 rubles for the first quarter, 86,000 rubles for the second, and 48,000 rubles for the third. He paid taxes quarterly based on these profit amounts. In the tax return, the individual entrepreneur indicated an annual profit of 225,000 rubles. Let’s calculate the amount of the annual tax, provided that the individual entrepreneur uses simplified taxation in his activities according to the “Income” type.
First of all, let's find the size of each advance payment. To do this, multiply quarterly income by 6 – the interest rate:
- 56,000 rubles * 6% = 3,360 rubles.
- 86,000 rubles * 6% = 5,160 rubles.
- 48,000 rubles * 6% = 2,880 rubles.
The total amount of advance payments is equal to:
- 3,360 rubles + 5,160 rubles + 2,280 rubles = 10,800 rubles.
- 225,000 rubles * 6% = 13,500 rubles.
Now, let’s subtract advance payments from the total tax amount:
- 13,500 rubles – 10,800 rubles = 2,700 rubles.
This amount is the last payment for the tax period.
Known for fairly simple accounting and reporting. If an entrepreneur does not have employees, then he records his income and expenses in KUDiR, and once a year submits a declaration according to the simplified tax system. Individual entrepreneurs do not maintain accounting records; this is the responsibility of organizations only.
But if there are employees, then the individual entrepreneur on the simplified tax system is obliged to submit the same reports for employees as other employers, and it cannot be called simple. What do you need to pay, manage and submit to individual entrepreneurs with employees in 2019?
Considering that entrepreneurs do not need full-fledged accounting, by we will mean only tax accounting and reporting for employees. Individual entrepreneurs’ reporting on the simplified tax system with employees in 2019 includes reports to the Federal Tax Service and to the Pension and Social Insurance funds. In addition, employers pay monthly insurance premiums for their employees in the amount of 30% of the amounts paid. In this article we will tell you what kind of reporting an individual entrepreneur submits to the simplified tax system with employees in 2019.
Individual entrepreneurs on the simplified tax system with hired employees: reports for 2019
What kind of reporting do individual entrepreneurs submit under the simplified tax system? If we talk about simplified tax reporting for individual entrepreneurs, then this is just one declaration at the end of the year. Individual entrepreneurs are required to submit a simplified declaration no later than April 30 of the current year for the previous one.
Organizations have less time to submit a declaration under the simplified tax system; for them the deadline is March 31. At the end of each quarter, simplified tax payers must calculate and pay an advance payment on the income received. Quarterly reporting on the simplified tax system is not established.
The form of the declaration under the simplified tax system often changes, and submission of individual entrepreneurs’ reports using an outdated form is equivalent to its failure to submit it. You can find the current current declaration form on the Federal Tax Service website tax.ru or in ours.
Individual entrepreneurs using the simplified tax system with hired employees submit reports 2-NDFL and to the tax inspectorate, which reflect information about the amounts paid to employees, as well as the withheld and transferred income tax. In the case of personal income tax, the employer is not a taxpayer, but a tax agent.
- The deadline for submitting 2-NDFL for individual entrepreneurs in 2019 is until April 1 for the previous year;
- The deadline for submitting 6-NDFL in 2019 for individual entrepreneurs is no later than the end of the next month for the reporting quarter.
In addition, once a year you must submit information about the Federal Tax Service.
The accounting of an individual entrepreneur with employees is much more complicated than the reporting of an entrepreneur working independently. You must be able to calculate and pay wages twice a month, calculate and transfer insurance premiums monthly, and, if necessary, calculate vacation pay, sick leave, and maternity benefits. Plus, you have to submit reports - once a quarter or month. We recommend transferring the maintenance of calculations, accounting, and reporting to specialists, because mistakes can result in severe penalties. Outsourcing accounting services often costs much less than the salary of a full-time accountant.
In 2019, employers submit monthly reports for employees to the Pension Fund. It is called “Information about the insured persons”; the form SZV-M is provided for it. You can download the SZV-M form and learn about the nuances of filling it out in the article "".
In addition, at the end of 2019, it will be necessary to submit annual reports for employees to the Pension Fund - Personalized accounting information for the year. The deadline is no later than March 1 of the following year.
Reporting to Rosstat for individual entrepreneurs in 2019
Does an individual entrepreneur need to submit a report to statistics? Every 5 years, Rosstat conducts continuous monitoring, within which reporting is mandatory for all individual entrepreneurs. The last time such observation was carried out was in 2016.
Rosstat publishes information on conducting continuous monitoring on its official website; in addition, statistical reporting forms are sent to taxpayers to fill out. Between periods of continuous observation, reporting to Rosstat is selective; a request is sent to a specific entrepreneur.
A fine may be imposed for violating the obligation to submit statistical reports. For individual entrepreneurs this is an amount from 10 to 20 thousand rubles. To play it safe, find out in advance whether you need to submit a report to statistics. This can be done by filling out the fields of a special form.
Deadlines for submitting reports in 2019 for individual entrepreneurs using the simplified tax system
We remind you that there are no deadlines for submitting financial statements for individual entrepreneurs, because Entrepreneurs do not keep actual accounting records. Let's reduce the deadlines for submitting reports for individual entrepreneurs with employees using the simplified tax system in 2019 to the tax calendar:
Organ | Report | Period | Deadline |
Inspectorate of the Federal Tax Service | declaration according to the simplified tax system | year | |
Inspectorate of the Federal Tax Service | 2-NDFL | year | |
Inspectorate of the Federal Tax Service | 6-NDFL | quarter | no later than the end of the month following the quarter |
Inspectorate of the Federal Tax Service | information about the number | year | |
| Inspectorate of the Federal Tax Service | unified calculation of contributions (new form) | quarter | no later than the 30th day of the month following the quarter |
Pension Fund | SZV-M | month | no later than the 15th day of the month, following the reporting |
FSS | 4-FSS | quarter | no later than the 20th day of the month, next quarter |
FSS | Kind of activity* | year |
*Individual entrepreneurs and employees submit a certificate to the Social Insurance Fund to confirm their main activity only if they have changed the OKVED code of their main activity. Annual submission of the report is not required.
So, we figured out what reports an individual entrepreneur submits to the simplified tax system in 2019 with his employees. The list is extensive, and you will have to submit these reports in full, even if there is only one employee.
With regard to the simplified tax system declaration for 2017, the deadlines for submission to the Federal Tax Service are established by the Tax Code of the Russian Federation. Moreover, they are completely different for organizations (firms, enterprises) working on a simplified system, and individual entrepreneurs using the simplified tax system. We are considering when it is necessary to submit annual reports under the simplified tax system for 2017 for each of the simplified categories and what will happen if you are late.
Who is required to submit a declaration
All legal entities and entrepreneurs working on a simplified basis are required to submit the final declaration under the simplified tax system for 2017, regardless of the object they choose:
1. Tax only on income.
2. Tax on income minus expenses.
Moreover, even those payers who did not conduct any activity in 2017 must submit a zero declaration under the simplified tax system for 2017. Simply put, when the business was “frozen”, it stood idle. In particular, there were no transactions on the accounts.
The deadline for submitting the simplified tax system declaration for 2017 is regulated by clause. 1 and 2 paragraphs 1 art. 346.23 Tax Code of the Russian Federation. And let’s say right away that there are no changes to these standards in 2017 and 2018. That is, the old rules apply.
When do organizations hand over
As a general rule, the deadline for filing a simplified taxation system declaration for 2017 by organizations (legal entities) is no later than March 31 (subclause 1, clause 1, article 346.23 of the Tax Code of the Russian Federation). However, March 31, 2018 falls on a Saturday – a day off. Therefore, according to the rules of the Tax Code of the Russian Federation, if the deadline falls on an official weekend or non-working day, then it is automatically subject to postponement. This is stated in paragraph 7 of Art. 6.1 Tax Code of the Russian Federation.
Thus, in 2018, the deadline for filing a tax return under the simplified tax system for 2017 by legal entities is April 2, 2018 inclusive. It will be Monday:
When is the IP submitted?
As for individual entrepreneurs, the deadline for submitting their declaration under the simplified tax system for 2017 has been shifted exactly 1 month later (subclause 2, clause 1, article 346.23 of the Tax Code of the Russian Federation) - until April 30, 2018 inclusive. Although it will be Monday, it will be an official non-working day due to the following first May holidays.
As a result, the deadline for filing an individual entrepreneur’s declaration of the simplified tax system for 2017 is also subject to the rule of the Tax Code of the Russian Federation on postponing the deadline. It falls on May 03 – Thursday. This will be the first working day after the extended May weekend:
Thus, in 2018, simplified entrepreneurs have two additional days to prepare and submit their declaration for 2017. Let us remember that merchants do this at their place of residence.
Individual entrepreneurs and LLCs that have switched to paying tax according to the simplified tax system are generally exempt from paying many taxes. Accordingly, the scope of reporting for them, as a rule, is significantly reduced. We’ll look at how to report on simplified individual entrepreneurs and LLCs in 2019 in our article.
Reporting under the simplified tax system in 2019
Based on the results of the tax period (calendar year), individual entrepreneurs and LLCs submit to the tax inspectorate a tax return for the tax paid in connection with the application of the simplified taxation system (approved by Order of the Federal Tax Service of Russia dated February 26, 2016 No. ММВ-7-3/99@). The deadlines for submitting reports under the simplified tax system are as follows:
- for LLC - no later than March 31. That is, reporting under the simplified tax system for 2019 is due no later than 03/31/2020;
- for individual entrepreneurs - no later than April 30. That is, reporting under the simplified tax system for 2019 is submitted to individual entrepreneurs no later than 04/30/2020.
Accounting statements of individual entrepreneurs and LLCs on the simplified tax system
An individual entrepreneur using the simplified tax system is not required to keep accounting records (clause 1, clause 2, article 6 of Federal Law No. 402-FZ of December 6, 2011), therefore he does not prepare financial statements.
LLCs that apply the simplified tax system and are small businesses can use simplified methods of accounting, including the preparation of simplified accounting (financial) statements (clause 4 of article 6 of the Federal Law of December 6, 2011 No. 402-FZ). You can organize “simplified” accounting using the Standard Recommendations for organizing accounting for small businesses (approved by Order of the Ministry of Finance of the Russian Federation dated December 21, 1998 No. 64n). Simplified forms of the balance sheet, statement of financial results, report on the intended use of funds are given in Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n.
The remaining organizations maintain accounting records and prepare financial statements in full.
“Salary” taxes under the simplified tax system in 2019
The organization submits reports on insurance premiums to the Federal Tax Service and the Social Insurance Fund, and reports to the tax office on withheld personal income tax from the income of its employees. The same is true for individual entrepreneurs who engage employees under employment contracts or enter into GPA.
Individual entrepreneurs who work “alone” are exempt from “salary” reporting; they are limited only to paying contributions for themselves. That is, the reporting of individual entrepreneurs on the simplified tax system without employees is only a declaration under the simplified tax system for the year.
Other LLC reporting on the simplified tax system in 2019
If LLCs are recognized under the simplified tax system or are subject to income tax, pay property tax, land or transport taxes, then they submit declarations (calculations) for these taxes to the tax office in accordance with the requirements of the Tax Code of the Russian Federation.
