Personal business. Step two: choose a tax system
At the stage of state registration of business, or after its completion, each novice entrepreneur will have to face the need to choose a taxation system – DOS, STS, UTII … What is behind these abbreviations and how does the choice of each of them affect the life of the entrepreneur?
In order to understand which tax regime is best suited for a particular business, you need to clearly understand what exactly you will do and on what scale, who will be your consumer, and who do you see as partners, will you attract employees and how much and what profit are you counting on. Answers to these questions will help determine the choice of the most optimal taxation system for you.
8 questions that will help you choose a tax system. What type of activity will my company be engaged in?
2. Will I have employees and how many?
3. What is the expected level of income and expenses of my business?
4. Who are my future customers and partners?
5. Where will I purchase goods – in Russia or abroad?
6. Are there any particular tax regimes in my region?
7. What is the cost of fixed assets on the balance sheet of my enterprise?
8. Do I fall into one of the preferential categories of taxpayers?
Current legislation allows legal entities and individual entrepreneurs to use the following tax regimes:
1. The general tax regime or the general taxation system (DOS);
2. Special modes:
Simplified tax system (STS);
Unified Agricultural Tax (SAR);
Unified imputed income tax (UTII);
Patent System of Taxation (PSN).
General taxation system (DOS)
Income Level: Unlimited
Type of business: any
DOS or the general taxation system is the basic, basic system of taxation of business activities. If, during the registration of a business, the entrepreneur did not declare his desire to apply a special tax regime, then after registration he will be automatically assigned DOS. It is considered the most complex and burdensome for business – the highest tax burden, complex accounting and reporting, the need to calculate VAT …
There are a lot of minuses. But on the other hand, DOS gives the businessman carte blanche – you can choose any type of activity, there are no restrictions on the level of income and the number of employees. And assigned by default – there is no need to submit any application.
Pros and Cons of OCH
There are no restrictions on the types of activities, the volume of revenue and the number of employees;
You can reimburse VAT paid to counterparties as part of the price of goods / services.
All basic taxes must be paid, plus additional taxes, depending on the type and conditions of activity (for example, mineral extraction tax);
minus.jpg Sophisticated system of accounting, reporting and interaction with tax authorities;
Highest tax burden;
It is necessary to calculate and pay VAT.
• DOS is optimal for medium-sized enterprises, the turnover and number of employees of which do not allow choosing a special tax regime;
• DOS is suitable for medium and small enterprises that are suppliers to large customers using DOS, and therefore work with VAT.
Special tax regimes
For small and medium-sized businesses, special tax regimes may be more convenient and beneficial. They are just created to simplify the lives of entrepreneurs: instead of several different taxes stipulated by DOS, they establish a single tax. Keeping records and reporting on them is much easier.
Simplified tax system (STS)
Income level: less than 150 million rubles. in year
Number of employees: less than 100 people.
Residual value of fixed assets: not more than 150 million rubles.
The share of another organization in the authorized capital or in shares: not more than 25%
Availability of branches: prohibited
Organizations and individual entrepreneurs with the number of employees up to 100 people and income level of not more than 150 million rubles per year can apply a simplified taxation system. The residual value of fixed assets of the organization should not exceed 150 million rubles, and the share of other organizations cannot be more than 25%. In addition, the company is prohibited from opening branches and representative offices.
You can choose a USN when submitting documents for business registration or after registration – by sending a notification to the Federal Tax Service within 30 days. You can switch to a “simplified system” from another taxation system, provided that according to the results of the 9 months of the year in which the notice of transition is filed, the proceeds of your company did not exceed 112.5 million rubles.