What taxes and insurance premiums an individual entrepreneur must pay

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

There are many nuances.

What taxes should an individual entrepreneur pay

It depends on the chosen taxation system.

General taxation system

OSN (or OSNO) is the default taxation system. It applies if the entrepreneur has not switched to any other regime from those that we will talk about further.

SP on OSN pays the following taxes:

• Personal income tax - 13%, with the exception of the Tax Code of the Russian Federation, article 224 "Tax rates" of certain types of income. Only profits will be taxed. To determine it, expenses for doing business are deducted from the amount of revenue. If the expenses cannot be confirmed by documents, the professional deduction will be 20%. You can apply other tax deductions available to an individual - for the purchase of housing, treatment or training. The tax is paid in three advance payments during the year, the balance is due by July 15 of the next year.
• Value added tax on the sale of goods and services, on the import of goods from abroad, and so on - depending on their type 0, 10 or 20%. VAT is paid by the Tax Code of the Russian Federation, article 164 "Tax rates" in the current quarter for the previous one. The total amount is divided into three parts and is paid monthly by the 25th. You can get the Tax Code of the Russian Federation, article 145 "Exemption from the fulfillment of duties of a taxpayer" exemption from VAT, if for the last three months the proceeds excluding tax did not exceed 2 million.
• Property tax, if any, - no more than 2, 2%, the rate depends on the region. You need to pay by December 1 on notification from the tax office.
• Transport and land taxes - rates are set by local authorities. You also need to deposit money before December 1.

Simplified taxation system

An entrepreneur can switch to a simplified system (STS) if he writes in a tax notification. It will not work to be on the simplified tax system if the individual entrepreneur has more than 130 employees, the annual income exceeds 200 million rubles, or the residual value of fixed assets is more than 150 million.

But there is a nuance here. Initially, the restrictions for the simplified tax system were lower: no more than 100 employees, income no more than 150 million, or the residual value of fixed assets no more than 100 million. These figures are preserved in the Tax Code of the RF Tax Code, article 346.12 "Taxpayers". Previously, if an individual entrepreneur reached one of the indicators, it was automatically transferred to the general tax regime. Now, if it remains in the range between the numbers from the first or second paragraph, then it retains the right to the simplified tax system. He just pays tax at the new rates. They are taxed on income from the beginning of the quarter in which there was an excess.

The simplified tax system allows you to choose how an entrepreneur wants to pay taxes:

• 6% of all income, but 8% if employees are from 100 to 130, income from 150 to 200 million, or the residual value of fixed assets from 100 to 150 million;
• 15% of the difference between income and expenses (but not less than 1% of revenue) or 20% if it falls into the transition range.

Regions can lower rates for all individual entrepreneurs or for certain types of activities. In addition, new entrepreneurs are provided with the Tax Code of the Russian Federation, article 346.20 "Tax rates", tax holidays for a period of up to two years, when taxes can not be paid at all. But only entrepreneurs working in the industrial, social, scientific spheres, as well as providing household services to the population, can take advantage of the privilege.

The tax on the simplified tax system is paid quarterly - no later than the 25th day of the month following the reporting period. An exception is made only for the last payment, it must be made no later than April 30 of the next year.

Keep in mind: when paying 6% of all income, an individual entrepreneur can deduct the paid insurance premiums from the tax amount - in full, if there are no employees, or no more than 50%, if any.

Patent taxation system

PSN is available to the Tax Code of the Russian Federation, article 346.43 "General provisions" only for certain types of activities. Among them, for example:

• repair, cleaning, painting and sewing shoes;
• hairdressing and beauty services;
• dry cleaning, painting and laundry services;
• production and repair of metal haberdashery, keys, license plates, street signs.

Moreover, one individual entrepreneur may have several patents. To switch to this taxation system, the company must have less than 15 employees, and the total annual revenue is no more than 60 million.

An entrepreneur buys a patent for a certain type of activity, and that's it, there is no need to pay other taxes. But this does not exempt from insurance premiums.

The cost of a patent is set by regional authorities based on the average earnings of a business in this area. Payment terms depend on the validity period.

• If a patent is issued for a period of less than 6 months, then the money is deposited, while it is valid, in one payment.
• If a patent is issued for a period of more than 6 months, then a third of the cost is paid within 90 days from the date of its receipt, the remainder - until the expiration date.

The patent is issued only within one calendar year, so in May it will not be possible to receive it for 12 months - until December 31, the maximum.

The cost of the patent can also be reduced by the amount of the insurance premiums paid. Here, as with the simplified tax system - in whole, if there are no employees, or no more than 50%, if they are.

Unified agricultural tax

UAT is suitable for those who grow, process or sell agricultural products. To calculate it, the income minus expenses and losses of previous years is multiplied by the tax rate. By default, it is 6%, but regions can reduce it down to zero.

The tax is paid in two stages:

• advance payment for the first half of the year - until July 25;
• payment at the end of the year - until March 31.

In addition, entrepreneurs have to pay VAT on the unified agricultural tax (details about this tax were in the paragraph on the general taxation system).

What insurance premiums an individual entrepreneur must pay

This is pretty easy to figure out.

Compulsory pension insurance contributions

They form the entrepreneur's future pension. Their size depends on the Tax Code of the Russian Federation, article 430 "The amount of insurance premiums paid by payers who do not make payments or other remuneration to individuals" on the year and income.

If the income is less than 300,000 rubles per year, then a fixed amount is transferred to the Pension Fund:

• for 2021 - 32,448 rubles;
• for 2022 - 34 445 rubles;
• for 2023 - 36,723 rubles.

If you managed to earn more, then 1% of the difference between the actual income and 300,000 rubles is added to the fixed amount. For example, with 500,000 rubles for 2021 you will have to pay as much:

32,448 + 1% (500,000 - 300,000) = 34,448 rubles.

At the same time, insurance premiums for GPT have a limit, which is equal to eight times the amount of the fixed premium. In 2021 it is 259,584 rubles, in 2022 - 275,560. More than this amount from individual entrepreneurs will not be taken even with impressive earnings.

Compulsory health insurance premiums

These contributions allow you to receive medical services without additional payment under the compulsory medical insurance policy. Their size is fixed:

• for 2021 - 8 426 rubles;
• for 2022 - 8 766 rubles;
• for 2023 - 9,119 rubles.

How to pay insurance premiums to individual entrepreneurs

Individual entrepreneurs independently calculate and pay insurance premiums. This must be done by December 31 of the current year, if the income is less than 300,000 rubles, or by July 1 of the next year, if more. It is worth considering that fixed contributions are paid even with zero income and virtually no activity. An exception is made if the entrepreneur does not work, because:

• is undergoing conscription military service;
• caring for a child under 1, 5 years old, or a disabled person of the first group, or a disabled child, or a person over 80 years old;
• moved after his military spouse to an area where there was no opportunity to work;
• is abroad due to the work of a spouse in a diplomatic mission, consular office of the Russian Federation or an international organization (list of the Decree of the Government of the Russian Federation of April 10, 2014 No. 284 "On approval of the list of international organizations, the spouses of whose employees, when establishing insurance pensions, the period of residence is included in the insurance period abroad "the latter is established by the government).

In order not to pay contributions legally, you need to submit an application to the tax authority at the place of registration and documents confirming that you have such a right.

If the individual entrepreneur did not work for a full year, the amount of insurance premiums is calculated based on the number of months actually worked and days in not fully worked. In case of termination of activity as an entrepreneur, payments must be paid within 15 days from the date of deregistration with the tax office.

It is not necessary to report to the tax office on the payment of insurance premiums.

What taxes and insurance premiums an individual entrepreneur is obliged to pay for employees

Here's what you need to know.

Personal income tax

Personal income tax is 13%. It is charged to the employee's income and is deducted from the amount that he should receive.

For example, under an employment contract, an employee's salary is 30,000 rubles per month. Consequently, the employee will receive 30,000 - 13% = 26,100 in his hands. And 3,900 rubles will go towards personal income tax.

It is worth considering that personal income tax is not charged on some payments. First of all, we are talking about compensation, material assistance and preferential payments.

The tax is paid on the payday or the next.

Insurance premiums

Contributions are also credited to all employee income, but are no longer deducted from them. The employer must pay these amounts on his own. They constitute the Tax Code of the Russian Federation Article 425. Rates of insurance premiums:

• for compulsory pension insurance - 22%;
• for compulsory medical insurance - 5.1% (1.8% for foreigners and stateless persons temporarily staying in the Russian Federation);
• for compulsory social insurance (in case of illness or in connection with motherhood) - 2.9%;
• for insurance against industrial accidents and occupational diseases - 0, 2–8, 5% depending on the Federal Law of December 22, 2005 N 179-FZ on the employee's occupational risk class.

As soon as the employee's annual income reaches the Decree of the Government of the Russian Federation of November 26, 2020 No. 1935 "On the maximum size of the base for calculating insurance contributions for compulsory social insurance in case of temporary disability and in connection with maternity and for compulsory pension insurance from January 1, 2021" 1, 465 million, from the subsequent earnings to the Pension Fund you need to transfer only 10%. Contributions to the Social Insurance Fund are not paid after reaching the 966 thousand level. These indicators were introduced for 2021. They grow annually.

In addition, an individual entrepreneur can reduce contributions to compulsory social insurance by the amount of payments to an employee on sick leave and in connection with maternity. And for some categories of payers, reduced rates are provided.

It is necessary to transfer insurance premiums by the 15th day of the month following the one in which the employee received payments.

The transfer of contributions for employees must be reported to the Federal Tax Service on a quarterly basis. There are 30 days for this after the end of the billing period.

Where to transfer taxes and insurance premiums

Since 2017, entrepreneurs have been sending Federal Law No. 243-FZ dated July 03, 2016 "On Amendments to Parts One and Two of the Tax Code of the Russian Federation in connection with the transfer of powers to administer insurance premiums for compulsory pension, social and health insurance" to tax authorities. deductions, insurance premiums for yourself and employees to the tax office. The FTS distributes money independently.

What to remember

• The entrepreneur pays taxes in accordance with the taxation system of his choice.
• He is also obliged to transfer insurance premiums for himself. An exception is if a person has suspended activities for a good reason. The list of such reasons is defined in the law.
• If an individual entrepreneur has employees, he must pay personal income tax and insurance premiums for them.
• There are many details to consider when paying taxes and insurance premiums. Too much to act without studying the laws or the help of a knowledgeable person.

This article was posted on October 21, 2019. In September 2021, we updated the text.