Tax holidays for individual entrepreneurs in the regions. Tax holidays for individual entrepreneurs Tax holidays for individual entrepreneurs in the year

Since 2015, tax legislation has introduced a zero rate for individual entrepreneurs using the simplified taxation system (STS) or the patent taxation system (PTS), i.e., they have the opportunity not to pay taxes.

The so-called “tax holidays for individual entrepreneurs” have been introduced.

What is the essence of this innovation?

According to adopted federal standards, starting from January 1, 2015, legislators of constituent entities of the Russian Federation can establish a zero rate for first registered individual entrepreneurs, who have chosen the tax system of either the simplified tax system or the PSN and carry out their activities in such areas as:

• production;
• social;
• scientific;
• provision of household services to the population.

At the same time, the types of business activities that will relate to the areas of activity listed above are established by the relevant laws of the constituent entities of the Russian Federation. And if your regional authorities have not decided to introduce a zero rate, then this means there will be no tax holidays for individual entrepreneurs in your region.

Moreover, “tax holidays for individual entrepreneurs” are introduced from the moment of registration and are valid only for two years if the activities of the individual entrepreneur are not interrupted. Here it is important not to forget that registration as an individual entrepreneur should really be the first, and not repeated, as many individuals who were previously individual entrepreneurs think.

If you have been an entrepreneur before

If you carried out entrepreneurial activity a long time ago, then stopped it, and now want to register as an individual entrepreneur again, then the “tax holiday” will not apply to you.

Moreover, if you registered for the first time after January 1, 2015, but the regional law introducing “tax holidays for individual entrepreneurs” has not yet been adopted, then you will also not be able to take advantage of the right to tax exemption.

For example, you first registered as an individual entrepreneur in March 2017 and plan to provide household services to the population. If, at the time of your registration as an individual entrepreneur, a constituent entity of the Russian Federation had not adopted a law introducing a “zero rate”, then you will not be able to apply “tax holidays” in 2017, and even later.

How to determine in advance whether the entrepreneurial activity of an individual entrepreneur relates to household services for the population or not

If you are a beginning individual entrepreneur and are trying to decide on the type of activity that you want to carry out and fall under the “tax holiday” for individual entrepreneurs in 2017, then you need to:

1. First of all, familiarize yourself with the All-Russian Classifier of Types of Economic Activities. By the way, when filling out an application for registration as an individual entrepreneur, you must also indicate the code of the type of activity or several codes, if you plan to carry out several types, from this Classifier. And today the classifier is new. This is OK 029-2014 (NACE REV. 2);

1. select from the Classifier the required type of activity that you will carry out and determine the code for this type of activity (at least 4 digital values);
2. check the presence of this type of activity in the list of those types of activities for which your regional authorities have introduced tax holidays for individual entrepreneurs in your region;
3. indicate the code of the selected type of activity in the application for registration as an individual entrepreneur and be exempt from paying tax for 2 years if the selected type of activity is subject to “tax holidays”.

For example, let's say you want to start a shoe repair business. Then, using the above Classifier, it can be established that the code for this type of activity will be 95.23 “Repair of shoes and other leather goods.” And this type of activity is included in section “S. Provision of other types of services" in:

• class 95 “Repair of computers, personal consumption and household items”;
• subclass 95.2 “Repair of personal and household items;
• group 95.23 “Repair of shoes and other leather goods.”

Moreover, you can see a decoding of the type of activity you are looking for, i.e. what the group includes. For example, the group that included the type of activity we found includes:

• repair of footwear and leather products: boots, shoes, suitcases and other similar products;
• heel heel;
• shoe coloring.

Thus, using the Classifier, you will be able to more accurately determine the type of activity that you plan to carry out and find out whether “tax holidays” apply to this type of activity or not.

What conditions are established for individual entrepreneurs during the “tax holiday”?

As a rule, when introducing a new norm that eases the burden on the payer, legislators always impose some conditions or restrictions. With the introduction of “tax holidays” for individual entrepreneurs, there were also restrictions accompanying this norm:

1. at the end of the tax period, the share of income received from activities in the above areas (i.e., which are subject to a zero rate) must be at least 70% of the total income received by the individual entrepreneur. This is the main condition that individual entrepreneurs who use both the simplified tax system and the PSN must comply with for 2 years. This is especially true for those individual entrepreneurs who combine modes. For example, if an individual entrepreneur has registered for the first time, but in addition to activities on the simplified tax system with a zero rate, he also applies UTII;
2. regional authorities may set restrictions on number and income.

What happens if an individual entrepreneur ceases its activities during the “tax holiday”?

If an individual entrepreneur during a “tax holiday” ceases to operate before the expiration of the second year of application of the zero rate or violates other restrictions established by regional laws, the individual entrepreneur will be obliged to pay tax at real rates for the year (tax period) in which these restrictions were violated.

In 2015, the legislation of the Russian Federation introduced the concept of tax holidays, which give the right to individual entrepreneurs (registered for the first time) not to pay taxes. For individual entrepreneurs, a rate of 0% is set for certain types of activities.

In our material today, we will look at in what areas tax holidays are being introduced for individual entrepreneurs in 2019 and other forms of small and medium-sized businesses, what benefits are provided for small businesses and what features tax holidays have in Moscow, as well as in other regions of Russia in 2019 .

Features of tax holidays in 2019

The application of tax holidays in a particular region of the Russian Federation depends on the decision of local authorities. They are the ones who establish the types of activities (according to OKUN and OKVED) that are subject to tax holidays. Thus, the law on tax holidays will not apply in all regions.

It should be noted that the essence of the law is that for individual entrepreneurs who work on the patent and simplified tax system, the rate is 0%. At the same time, insurance contributions to the Social Insurance Fund and the Pension Fund for oneself and for employees, tax reporting and personal income tax in 2019 remain unchanged.

Conditions for tax holidays for individual entrepreneurs

Tax holidays will be valid in the constituent entities of the Russian Federation from 2015 to 2020 and can be applied under the following conditions:

1. Only individual entrepreneurs who registered for the first time can use the benefit. Tax holidays do not apply to existing individual entrepreneurs. Even if an individual entrepreneur has de-registered and registered again as an individual entrepreneur, he is not subject to the law on tax holidays.

2. Entrepreneurs who have switched to the PSN or simplified tax system within two years (from the date of state registration) can apply a preferential rate. The benefit does not apply to other tax regimes.

3. The right to apply the benefit (0% rate) is valid only for the first two years of the individual entrepreneur’s activity.

4. Tax holidays for individual entrepreneurs in 2019 apply only to those entrepreneurs who operate in the following areas:

• social;
• scientific;
• production.

At the same time, the share of the individual entrepreneur’s income in the above types of activities cannot be less than 70% of the entrepreneur’s total income.

5. The authorities of the constituent entities of the Russian Federation may introduce additional restrictions at their own discretion (this may be a limit on the maximum income from the sale of goods, services or products, or a limit on the average number of employees).

Tax holidays for persons using PSN

It should be taken into account that PSN can be used by self-employed citizens. Thus, an individual who does not have hired employees has the right to apply PSN without registering with the tax office as an individual entrepreneur.

For all persons working on PSN, the tax payment deadline has been extended. That is, if the patent was received for the period:

• up to 6 months - payment of the tax in full must be made no later than the expiration of the patent;
• from 6 to 12 months - 1/3 of the tax amount is payable 90 days after the patent begins to be valid. The remaining 2/3 of the tax amount will need to be paid no later than the expiration of the patent (no later than 30 days before the expiration of the patent).

Tax holidays for small businesses in 2019

In accordance with Decree No. 98-r dated January 27, 2015, the following measures are provided to support small and medium-sized businesses in 2019:

• the list of permitted activities has been expanded;
• granting the right to constituent entities of the Russian Federation to reduce the maximum amount of potential income per year for individual entrepreneurs (from 1 million rubles to 500,000 rubles).

3. For individual entrepreneurs on UTII: granting the right to local authorities of constituent entities of the Russian Federation to lower the tax rate from 15% to 7.5%.

4. Increasing the maximum values ​​of revenue from the sale of goods and services for classifying business entities as small and medium-sized businesses by 2 times:

• for micro-enterprises - from 60 to 12 million rubles;
• for small enterprises - from 400 to 800 million rubles;
• for medium-sized enterprises - from 1 to 2 billion rubles.

Registration of tax holiday benefits for individual entrepreneurs in 2019

In order to apply for benefits, you must complete the following steps:

1. After registering an individual entrepreneur, submit an application for transition to the Simplified taxation system within one month.

2. During the tax holiday, it is necessary to submit reports with a tax rate of 0%.

3. If a patent is purchased, then its zero value must be indicated in the reports.

Please note that in each region where the 2019 small business tax holiday applies, there are certain conditions that are subject to adjustment by the federal authorities.

For example, in St. Petersburg, tax holidays for individual entrepreneurs using the simplified tax system came into force in 2016. In the Altai Territory, a zero tax rate is provided only for persons who work for PSN. In the Vologda region, a zero tax rate is provided only for persons who work for PSN.

Tax holidays in 2019 in different regions of the Russian Federation

We will publish a list of subjects of the Russian Federation in which tax holidays will work in 2019, indicating the date of their introduction:

Subject name	Subject code	Date of introduction of tax holidays
Republic of Adygea
Altai Republic
Republic of Bashkortostan
The Republic of Buryatia
The Republic of Dagestan
The Republic of Ingushetia			Not entered
Republic of Kabardino-Balkaria
Republic of Kalmykia
Karaaevr-Cherkess Republic
Komi Republic
Mari El Republic
The Republic of Mordovia
The Republic of Sakha (Yakutia)
Republic of North Ossetia-Alania
Tyva Republic
Udmurt republic
The Republic of Khakassia
Chechen Republic
Chuvash Republic
Altai region
Transbaikal region
Kamchatka Krai
Krasnodar region
Krasnoyarsk region
Perm region
Primorsky Krai
Stavropol region
Khabarovsk region
Amur region
Arhangelsk region
Astrakhan region
Belgorod region
Bryansk region
Vladimir region
Volgograd region
Vologda Region		Not entered
Voronezh region
Ivanovo region
Irkutsk region
Kalingrad region
Kaluga region
Kemerovo region
Kirov region
Kostroma region
Kurgan region
Kursk region
Leningrad region
Lipetsk region
Magadan Region
Moscow region
Murmansk region
Nizhny Novgorod Region			Not entered
Novgorod region
Novosibirsk region
Omsk region
Orenburg region
Oryol Region
Penza region
Pskov region
Rostov region
Ryazan Oblast
Samara Region
Saratov region
Sakhalin region
Sverdlovsk region
Smolensk region
Tambov Region
Tver region
Tomsk region
Tula region
Tyumen region
Ulyanovsk region
Chelyabinsk region
Yaroslavl region
Saint Petersburg
Jewish Autonomous Region
Nenets Autonomous Okrug
Khanty-Mansiysk Autonomous Okrug-Yugra
Chukotka Autonomous Okrug
Yamalo-Nenets District

As already noted, the use of benefits in accordance with tax holidays does not exempt individual entrepreneurs from making fixed contributions for themselves and for employees to the Pension Fund, Social Insurance Fund and Compulsory Medical Insurance Fund and paying personal income tax.

Tax holidays in Moscow in 2019

The introduction of tax holidays also affected Moscow (Moscow City Law No. 10 of March 18, 2015 “On the establishment of tax rates for taxpayers registered for the first time as individual entrepreneurs and who have switched to a simplified taxation system and (or) a patent taxation system”).

Individual entrepreneurs in Moscow and New Moscow have the right not to pay taxes under the PSN and simplified tax system, applying a 0% rate. We will look at who is exempt from taxes and what types of activities of entrepreneurs in Moscow are subject to tax holidays in 2019.

In order to receive the benefit, individual entrepreneurs in Moscow must meet the following conditions:

1. Be registered after March 25, 2015.
2. Use either the simplified tax system or the PSN.
3. The average number of individual entrepreneur employees should not be more than 15 people.
4. An individual entrepreneur carries out one of the types of activities listed below.

As already noted, the production, scientific and social spheres are exempt from tax. The list of types of activities of individual entrepreneurs in the city of Moscow that are exempt from tax is as follows:

Simplified taxation system

Textile production

Manufacture of wearing apparel; dressing and dyeing fur

Production of leather, leather goods and footwear production

Production of food products, including drinks (except for the production of alcoholic and alcohol-containing drinks)

Production of cellulose, wood pulp, paper, cardboard and products made from them

Wood processing and manufacture of wood and cork products, except furniture

Production of rubber and plastic products

Production of finished metal products

Publishing and printing activities, replication of recorded media

Production of electrical machines and electrical equipment

Production of equipment for radio, television and communications

Furniture manufacture

Production of musical instruments

Production of machinery and equipment (except for the production of weapons and ammunition) Production of sporting goods

Processing of secondary raw materials

Production of other products not included in other groups

Activities in the field of sports

Services in the education system

Health and social service provision

Research and development

Production of games and toys

Production of brooms and brushes

Production of medical equipment, measuring instruments, optical instruments and equipment, watches

Manufacture of office equipment and computer equipment

Patent tax system

Shoe repair, painting and sewing

Repair and sewing of clothing, fur and leather products, hats and textile haberdashery products, repair, sewing and knitting of knitwear

Furniture manufacturing and repair

Repair and maintenance of household electronic equipment, household cars and household appliances, watches, repair and manufacture of metal products, replacement of batteries in electronic watches and other devices

Production of folk arts and crafts

Services for training the population in courses and tutoring

Engraving work on metal, glass, porcelain, wood, ceramics

Toy repair

Repair and production of cooper's ware and pottery

Services for supervision and care of children and the sick

Copying, bookbinding, stitching, edging, cardboard works

Production and printing of business cards and invitation cards for family celebrations

Conducting physical education and sports classes

Production and restoration of carpets and rugs

Engagement in private medical activities or pharmaceutical activities by a person licensed for these types of activities

If an individual entrepreneur carries out not one, but several types of activities, then he must calculate the income from each of them. Let us remind you that income from preferential activities must be a total of 70% or higher.

Those who apply the simplified tax system submit a tax return at the end of the year. It indicates a tax rate of 0%.

On a patent, an individual entrepreneur can immediately indicate a 0% rate when applying for it.

At the end of the year, you will submit a tax return under the simplified tax system, in which you will indicate that you apply a 0% rate.

A 0% rate can be applied for two tax periods (starting from the date of registration of the individual entrepreneur). Let us remember that the tax period in this case is a year.

Since childhood, the word “vacation” has been associated with freedom from routine, the opportunity to devote time to your favorite activities, and pleasant days. Therefore, the announcement of tax holidays evokes the most positive emotions among entrepreneurs. According to legislators, the opportunity to temporarily reduce the tax pressure will allow businesses to use the income they receive for their own growth and development, which will have a positive impact on the country’s economy and the well-being of citizens. How this works in practice, what pitfalls entrepreneurs “on vacation” may encounter, whether everyone can count on this relaxation and other nuances regarding this topic, we will consider below.

Tax holidays in Russian

The authorities of the Russian Federation have made a decision designed to support small and medium-sized businesses. For this purpose, the document “Main directions of tax policy for 2016 and the planning period of 2017 and 2018” was drawn up and approved, which announces a grace period for small and medium-sized entrepreneurs.

Tax holidays- this is an announced period of time during which a specified category of entrepreneurs is fully or partially exempt from the obligation to pay tax contributions to the state treasury.

The adopted law on tax holidays is undoubtedly a long-awaited and promising government project, however, one should not be too deluded: it contains many conditions and restrictions.

IMPORTANT! The law is federal, but in its text the main powers to introduce tax holidays are given to regional authorities.

Vacation dates

The holiday period itself is designed to last until 2020, but entrepreneurs will be able to take advantage of it only during first two years after registration.

REFERENCE! Holidays cannot last more than two tax periods. Regional laws, by decision, can reduce the vacation period to one year.

To calculate the timing, it matters when the regional law on tax holidays came into effect in a particular area. The tax grace period is calculated within the calendar year. For example, if an individual entrepreneur was registered on February 10, 2015, then the tax holiday for him will not last until February 10, 2017, but only until the end of 2016. The first reporting period will end on February 10, 2016, the second period will be the remainder of 2016.

Conditions for individual entrepreneurs

Tax holidays are designed exclusively for small and medium-sized businesses in the form of individual entrepreneurship. However, not all individual entrepreneurs will be able to take advantage of the favorable period. The law stipulates a number of essential conditions for this.

1. Vacations for beginners. A tax period with a zero rate is provided only to entrepreneurs registered for the first time after the start of the holiday law (since 2015). Those entrepreneurs who registered before 2015 are not entitled to benefits. This also applies to those who were registered any time ago, suspended their activities or closed their doors. Closing and registering an individual entrepreneur again is a meaningless action from the point of view of calculating a zero rate.
2. For selected tax systems. Tax holidays are applied to individual entrepreneurs who have adopted the simplified tax system (simplified tax system) or PSN (patent) or switched to them within 2 years after registration. Please note: to obtain a patent it is not necessary to register as an individual entrepreneur; citizens of the Russian Federation can work on it as part of their own employment.
3. Field of activity. Activities not subject to tax due to holidays must be carried out in the scientific, social or industrial sphere.
4. Revenue share. Profit received from one of these types of activities must be at least 70% of the total income of the individual entrepreneur.
5. Regional subtleties. Local authorities have the right, at their discretion, to make changes and restrictions for individual entrepreneurs’ tax benefits, for example, based on the number of employees or the income limit.

Tax holidays do not apply to LLCs

A zero tax rate for two reporting periods will be provided only to individual entrepreneurs. LLCs, whose share in small businesses is about 80%, will not be affected by the benefits. The reason is that government agencies have not yet found a mechanism that would prevent the mass registration of legal entities for the sake of tax benefits. An individual entrepreneur has only one TIN number, which makes it very easy to track all changes in its tax status, while each newly opened organization has its own TIN. To prevent the founders from closing the company and reopening it for the sake of tax deferment, LLC is excluded from the declared tax holiday format.

Tax obligations of individual entrepreneurs during the holidays

Tax holidays do not mean complete freedom in relations with the tax authorities. It is worth remembering the responsibilities that are not canceled due to the two-year zero tax rate on a patent or “simplified” patent.

1. An individual entrepreneur must pay pension and insurance contributions “for himself” on time and in full.
2. If an individual entrepreneur uses the labor of hired workers, mandatory government payments remain for him:
   • personal income tax on the salary of each employee;
   • contributions for employees to the Pension Fund system, Compulsory Medical Insurance Fund and Social Insurance Fund.

Regional nuances

Depending on the region of the country and the policies of regional authorities, changes and restrictions may be made to the law on tax holidays. First of all, municipal authorities determine those types of activities (according to OKVED) that are affected by the zero rate law. For example, in Moscow, entrepreneurs engaged in activities from a list of 25 items can count on benefits, including:

• food industry;
• textile industry;
• sewing services;
• furniture manufacturing;
• translation services, etc.

A complete list of activities for which benefits are provided can be found on official government websites and the websites of local authorities. The St. Petersburg authorities introduced restrictions, depriving the possibility of tax holidays for entrepreneurs who are on the PSN. The number of employees of individual entrepreneurs who receive benefits should not exceed 15 people. The Ulyanovsk region has reduced the income limit for entrepreneurs on the simplified tax system, counting on tax benefits, ten times compared to the capital. Most regions have already introduced a tax holiday period, the beginning of which falls on one of the dates in 2015 or 2016. As of September 2016, the following regions were not among the constituent entities of the Russian Federation that announced tax holidays for their businessmen:

• Kabardino-Balkarian Republic;
• Karelia;
• Tatarstan;
• Vologda Region;
• Crimea;
• Federal city – Sevastopol.

FOR YOUR INFORMATION! Local authorities have the authority to withdraw tax benefits from an entrepreneur if, within two years (during the “vacations”), he violates the requirements and conditions defined in the regional legislation on the preferential tax period.

“Non-holiday” tax benefits

In addition to zeroing the tax rate for individual entrepreneurs on a patent and the simplified tax system, the government has provided a number of measures to ease the tax burden for other entrepreneurs.

1. The right of regional authorities to reduce the tax rate for entrepreneurs on the simplified tax system-6 (“Income”) to 1%.
2. Local authorities have the right to reduce the maximum potential annual income for PSN (up to 500 thousand rubles) and expand the list of activities for which a patent can be purchased.
3. For UTII payers, the rate can be reduced to 7.5%.
4. In order for an entrepreneur to classify himself as a small or medium-sized business, the physical values ​​of income indicators should not go beyond certain limits, which the government has the right to double to stimulate development.

Tax holidays for individual entrepreneurs in 2019 are one of the types of legal tax savings. Which businessmen have the right to use them and what is their essence? How can regions limit entrepreneurs from using tax holidays? What nuances should be taken into account when calculating the share of income from preferential activities? What to do with insurance premiums and reporting during the holidays? We will answer these and other questions in our material.

Tax holidays - 2019

Tax holidays for individual entrepreneurs are an opportunity not to pay tax under a simplified tax regime or a patent for two years after state registration as an individual entrepreneur, subject to certain conditions (clause 4 of article 346.20, clause 3 of article 346.50 of the Tax Code of the Russian Federation).

This bonus:

• allows individual entrepreneurs to reduce the tax burden;
• makes it possible to use saved funds for business development.

Individual entrepreneurs acquired the right to pay tax under the simplified tax system and special tax system at a rate of 0% back in 2015. Are there tax holidays for starting individual entrepreneurs at present? Officially, this event expires on December 31, 2020, and individual entrepreneurs still have the opportunity to take advantage of this tax preference if they:

• work in a region where a regulatory act on tax holidays has been adopted;
• use the simplified tax system or PSN;
• carry out entrepreneurial activities in the field of consumer services, production, scientific and (or) social spheres;
• the share of income from preferential activities is at least 70%.

Regional authorities may establish additional restrictions on the use of preferential holidays for individual entrepreneurs—for more details, see below.

Are there regional restrictions for starting entrepreneurs?

When introducing tax holidays on their territory, regional authorities have the right to establish restrictions:

• by types of activities covered by vacation;
• by number of employees and/or income received;
• by the duration of the tax holiday (this can be one tax period or two);
• according to the period of validity of the regional law on tax holidays ─ it can be valid until the end of the officially established period (until December 31, 2020), and in some regions the law has already expired.

Regions that do not consider it necessary to introduce this regime on their territory have the right not to adopt a law on tax holidays for individual entrepreneurs. In such a situation, entrepreneurs are deprived of the opportunity to apply a 0% rate, even if all other criteria are met.

Example 1

IP Samolov I.G. works in the territory where the law on tax holidays is in force. The date of registration with the tax authorities is 01/16/2016, and the date of entry into force of the law is 01/25/2016. An entrepreneur cannot count on tax holidays, since he registered as an individual entrepreneur before the law came into effect.

Example 2

Individual entrepreneur I. E. Kasimov registered with the tax office on 02/01/2019 with the expectation that by the end of 2020 he would be able to save on the cost of the patent by taking advantage of tax holidays. The tax authorities gave him a notice to pay the patent at the regular (non-zero) rate. The fact is that the regional law was in force only from 2016 to 2018. And since 2019, in this region, the zero rate for individual entrepreneurs does not apply.

Who is eligible for preferential treatment: newcomers to business or newly registered entrepreneurs with experience?

So, there are many restrictions on the use of tax holidays for newly registered individual entrepreneurs: both by type of activity, and by income, and by the number of employees.

There is another important question: who has the right to count on tax breaks? Only newcomers who received the status of an individual entrepreneur for the first time in their lives, or citizens who were previously engaged in business, but were deregistered and then decided to renew their status as an individual entrepreneur?

The Ministry of Finance on this issue expressed a position that is loyal to citizens - both of these categories of entrepreneurs have the right to take advantage of tax holidays (letter dated March 22, 2019 No. 03-11-11/19514).

At the same time, we should not forget that experienced businessmen who have already been in the status of an individual entrepreneur will be able to apply a zero rate under the simplified tax system and PSN in the event that they ceased activities in the status of an individual entrepreneur even before the regional law on tax holidays came into force, and registered again after the start of its action.

How to apply for tax exemption and how to report?

How to apply for tax holidays for individual entrepreneurs? Do I need to notify the tax authority that an individual entrepreneur is subject to tax holidays? The law does not require this. But it is better for the entrepreneur to check with his inspection whether any additional papers are needed from him in this regard.

Practice shows that sometimes additional clarification is indispensable - inspectors may not see any reason to apply a zero rate to individual entrepreneurs. This may be due to technical difficulties in correctly qualifying individual activities.

Tax authorities may deny an individual entrepreneur a zero rate if the wording in the regional law and the name of its type of activity look different. Then the individual entrepreneur can give the necessary explanations in writing, which will help convince controllers and obtain the right to a zero rate.

Holidays for individual entrepreneurs exempt them from taxes, but do not require reporting - individual entrepreneurs using the simplified tax system as usual submit a declaration at the end of the year indicating a zero tax rate. Entrepreneurs with a patent do not need to report to the tax office.

The individual entrepreneur is not required to submit any additional reports related to the application of the zero rate during the holidays.

Is it possible to save on insurance premiums?

Paying insurance premiums for individual entrepreneurs is a serious financial burden. Unfortunately, tax holidays do not apply to insurance premiums. This means that from the very beginning of his activities, the entrepreneur is fully obliged to fulfill all the obligations of the insurer to extra-budgetary funds - this equally applies to contributions from the salaries of individual entrepreneurs’ employees, and to the entrepreneur’s contributions for himself.

Officials, when asked about the exemption of individual entrepreneurs from paying contributions during tax holidays, note the following (letter of the Ministry of Finance of Russia dated October 18, 2017 No. 03-11-11/68194):

• The status of an individual entrepreneur is not only the opportunity to exercise certain rights and guarantees, but also the assumption of risks and responsibilities: according to the rules of doing business, fulfilling tax and non-tax obligations, including the payment of insurance premiums.
• At the expense of insurance contributions received by extra-budgetary funds, insurance guarantees are provided for the insured persons: for the payment of pensions, temporary disability benefits, social benefits in connection with maternity, etc.

Officials proceed from the fact that the state does not force a citizen to engage in one or another type of business activity. Before receiving the status of an individual entrepreneur, he himself assesses his readiness for this process in terms of education, skills, finances and property, including the ability to bear the burdens inherent in an individual entrepreneur.

How to calculate the share and what to do if it is insufficient?

Entrepreneurs often find it difficult to calculate the share of a preferential activity. But the possibility of applying a zero rate depends on the correctness of the calculations. How to correctly calculate this indicator if an individual entrepreneur has several types of activities, including preferential and non-preferential ones? Let's explain with examples.

Example 3

IP Safiullin D.K. registered in a region where tax holidays apply. He applies the simplified tax system “income minus expenses” and is engaged in three types of activities, only one of which is included in the list of preferential ones.

Based on the results of the expired tax period, individual entrepreneur D.K. Safiullin received income in the total amount of 9,589,968 rubles, including:

• activity 1 (preferential) - RUB 7,544,997;
• activity 2 - 1,078,540 rubles;
• activity 3 — 966,431 rub.

7,544,997 / 9,589,968 = 0.787 or 78.7%

The calculated figure exceeds the legally established limit of 70%, which means that individual entrepreneur D.K. Safiullin is not obliged to pay the simplified tax system for this period.

Example 4

The income of individual entrepreneur D.K. Safiullina for the past year amounted to 9,589,968 rubles, including:

• activity 1 (preferential) - 6,357,100 rubles;
• activity 2 - RUB 2,386,219;
• activity 3 — 846,649 rub.

Calculation of the share from preferential activities:

6,357,100 / 9,589,968 = 0.663 or 66.3%

The lower legal limit has not been reached: 66.3%<70%, значит, права на нулевую ставку налога у ИП Сафиуллина Д. К. нет. По п. 4 ст. 346.20 НК РФ он обязан уплатить УСН-налог по ставке 15% с базы «доходы минус расходы».

Should an individual entrepreneur keep records of income and expenses during the holidays using the simplified tax system?

Clause 1.2 of the Procedure for filling out the book of income and expenses, approved by Order of the Ministry of Finance of Russia dated October 22, 2012 No. 135n, states that taxpayers are required to ensure the completeness, continuity and reliability of recording the indicators of their activities necessary for calculating the tax base. Under these circumstances, there is no need to calculate the tax base for the tax - when multiplied by a rate of 0 percent, you will still get a zero value.

Why keep records then? Do tax holidays for individual entrepreneurs using the simplified tax system give them the right not to draw up a book of income and expenses (KUDiR)?

There is no direct answer to this question in tax legislation. However, a simplifier should not refuse to keep records for the following reasons:

• the procedure for filling out the KUDiR does not provide for the possibility for individual entrepreneurs to be exempt from keeping records of income and expenses for the purpose of calculating the tax base, to which a 0% rate is applied;
• For the absence of a completed book, individual entrepreneurs can be fined 10,000 rubles. (clause 2 of article 120 of the Tax Code of the Russian Federation).

In addition, information from KUDiR is necessary for the entrepreneur himself. If the income limit established in the regional law is exceeded or the share of income from preferential activities is less than 70%, the individual entrepreneur loses the ability to calculate tax at a rate of 0% and must determine tax liabilities in the usual manner.

Results

Tax holidays for individual entrepreneurs in 2019 are still in effect. They allow entrepreneurs on a simplified basis or a patent to apply a zero rate for the simplified tax system or PSN if a number of conditions are met: registration as an individual entrepreneur occurred for the first time after the regional authorities adopted the law on tax holidays, the share of income from preferential activities is at least 70%, and the types of activities themselves are listed in the regional law. The same law may establish additional restrictions on the average number and maximum allowable income.

Good afternoon, dear individual entrepreneurs!

Many people open individual entrepreneurs in the hope of receiving the so-called “tax holidays,” which were introduced back in 2015. Someone somewhere heard something =), and then they are terribly surprised when they are denied this benefit.

Let me note right away that the idea of ​​tax holidays is really very good. But, as always, there are many nuances that you need to keep in mind in order to get this tax break.

So, let’s take a brief look at this topic of concern to many in the “Question-Answer” format for 2018-2020. By the way, you can watch my video on this topic, or read the text version below:

1. Who can receive tax holidays in 2018-2020?

It is necessary that the following conditions for individual entrepreneurs be simultaneously met:

1. IP in your name must open for the first time. That is, if you close your current individual entrepreneur, and in good faith come for the right benefit, like a newly opened individual entrepreneur, then you will be refused. That is, This benefit applies only to those who register as individual entrepreneurs for the first time. Moreover, no more than two years have passed since the registration of the individual entrepreneur, and the registration itself took place AFTER the entry into force of the REGIONAL law on tax holidays.
2. You must work in one of these three areas: industrial, social, scientific.
3. Moreover, the share of such activities should be NOT LESS THAN 70% of the total income of the individual entrepreneur.
4. In your region a local law must be passed, which allows tax holidays.

Moreover, regional authorities may introduce the following restrictions:

1. By number of employees;
2. According to the maximum income per year;
3. They will prescribe specific activity codes according to OKVED, which are subject to tax holidays.

Thus, an individual entrepreneur who wants to receive a tax holiday must carefully study local laws to understand whether his activities qualify for this benefit or not.

You should also find out from local laws which specific OKVED codes fall under this benefit. They must be clearly defined, since the concepts of scientific, industrial or social sphere can be taken to mean almost any type of entrepreneurial activity =)

All this can be found out at your tax office, where you registered as an individual entrepreneur.

2. Have tax holidays been introduced in all regions of Russia?

No, not in all of them. The fact is that this benefit is left to the discretion of local authorities. And these holidays are not yet in effect in all regions of the Russian Federation. But in Moscow they have already been introduced:

In order for them to be introduced in your region, local authorities must first pass a law (clause 4 of Article 346.20 and clause 3 of Article 346.50 of the Tax Code of the Russian Federation, Federal Law No. 477-FZ of December 29, 2014).

Important: You can count on tax holidays only if you have opened AFTER the entry into force of the relevant REGIONAL law.

Naturally, if an entrepreneur is “tied” to the tax office by registration, then benefits must be expected and claimed in the region where the future individual entrepreneur is registered. And not where he will operate.

How can I find out if there are holidays in my area?

The easiest way is to call the Federal Tax Service hotline.

There is now a toll-free line from the Federal Tax Service, where your questions will be answered:

Which individual entrepreneur taxation systems will be covered by the holiday?

1. Individual entrepreneur on the simplified taxation system (Simplified or simplified taxation system)
2. Individual entrepreneur on PSN (Patent taxation system)

Other taxation systems are not specified in the law, which means they cannot count on this benefit.

What happens if I go beyond the tax holiday limits?

A reasonable question. Indeed, you will immediately lose this benefit as soon as you violate one of the conditions given above. If an individual entrepreneur loses the right to apply a zero rate, then according to:

In case of violation of restrictions on the application of a tax rate of 0 percent established by this chapter and the law of a constituent entity of the Russian Federation, an individual entrepreneur is considered to have lost the right to apply it and is obliged to pay tax at the tax rates provided for in paragraph 1, 2 or 3 of this article for the tax period in which these restrictions are violated. (Clause 4 introduced by Federal Law dated December 29, 2014 N 477-FZ)

That is, if your benefit is considered invalid, then pay taxes for the entire period when it was declared invalid for you as an individual entrepreneur.

And paragraphs 1,2,3 read verbatim as follows:

1. If the object of taxation is income, the tax rate is set at 6 percent. 2. If the object of taxation is income reduced by the amount of expenses, the tax rate is set at 15 percent. The laws of the constituent entities of the Russian Federation may establish differentiated tax rates ranging from 5 to 15 percent, depending on the categories of taxpayers. (as amended by Federal Law No. 224-FZ of November 26, 2008) 3. By the laws of the Republic of Crimea and the federal city of Sevastopol, the tax rate can be reduced in the territories of the relevant constituent entities of the Russian Federation for all or certain categories of taxpayers. For the periods 2015-2016, the tax rate can be reduced to 0 percent. For the periods 2017 - 2021, the tax rate can be reduced: - to 4 percent if the object of taxation is income; - up to 10 percent if the object of taxation is income reduced by the amount of expenses. At the same time, tax rates cannot be lower than 3 percent and can be differentiated depending on the categories of taxpayers. Tax rates established in accordance with this paragraph by the laws of the Republic of Crimea and the federal city of Sevastopol cannot be increased during the periods specified in this paragraph, starting from the tax period from which the reduced tax rate is applied. (Clause 3 introduced by Federal Law dated November 29, 2014 N 379-FZ)

How long will the holidays last?

From January 1, 2015 to December 31, 2020. That is, you can count on another three years of this benefit. To be precise, they will be in effect in 2018, 2019 and 2020. But for a particular individual entrepreneur, tax holidays can last no more than two tax periods from the date of registration as an individual entrepreneur.

Maybe they will be extended after 2020, but at the moment there are no such prerequisites. Stay tuned for blog updates, if anything changes, I will write about it.

What about contributions to the Pension Fund? Do they need to be paid?

Yes need.

It is a big mistake to think that if an individual entrepreneur is on vacation, then there is no need to pay mandatory contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and for your employees). Need to.

Let me emphasize once again that this is a tax benefit under the simplified tax system (or PSN). And contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund do not apply to taxes.

Do you need to submit reports?

Necessarily. Even if you have zero reporting, you need to submit it. And I repeat once again that tax holidays for individual entrepreneurs do not mean that reporting can be completely ignored.

Pay all contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and your employees), submit reports. Everything is as usual.

How do you even get this benefit? Do I need to write some kind of statement?

Good question. Since tax holidays are introduced at the regional level, you need to contact your tax office for information on such issues. Let me remind you once again that this is an inspection that is “linked” to the registration address in your passport.

To summarize:

1. You should clarify the question of whether tax holidays apply in your region;
2. Find out the specific OKVED codes that fall under this benefit;
3. Your individual entrepreneur must be on the simplified tax system or PSN;
4. You must comply with all restrictions prescribed by law;
5. Submit all tax returns, despite the fact that they will be zero.

Well, there may be other nuances that may arise during your work.

P.S. If you have additions to this information, you can write them below.

Other important changes for 2017 for individual entrepreneurs:

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Dear readers!

A detailed step-by-step guide to opening an individual entrepreneur in 2019 is ready. This e-book is intended primarily for beginners who want to open an individual entrepreneur and work for themselves.

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"How to open an individual entrepreneur in 2019? Step-by-step instructions for beginners"

From this manual you will learn:

1. How to properly prepare documents for opening an individual entrepreneur?
2. Selecting OKVED codes for individual entrepreneurs
3. Choosing a tax system for individual entrepreneurs (brief overview)
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5. Which supervisory authorities need to be notified after opening an individual entrepreneur?
6. All examples are for 2019
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