Own business, we choose the tax system
At the stage of state registration of a business, or after it has been completed, every start-up entrepreneur will have to face the need to choose a taxation system – DOS, USN, UTII … What is behind these abbreviations and how does the choice of each of them affect the life of an entrepreneur?
In order to understand which tax regime is best suited for a particular business, you need to clearly understand what you will do and on what scale, who will be your consumer, and who you see as partners, whether you will attract employees and how much what profit you expect. Answers to these questions will help determine the choice of the most optimal taxation system for you.
8 questions to help you choose a tax system
1. What type of activity will my company do?
2. Will I have employees and how much?
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 buy goods – in Russia or abroad?
6. Are there any tax regimes in my region?
7. What is the value of fixed assets on the balance sheet of my company?
8. Do I fall into one of the preferential categories of taxpayers?
The 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 taxation system (USN);
Unified agricultural tax (UAT);
Single tax on imputed income (UTII);
Patent taxation system (PSN).
numbering-small.png General taxation system (DOS)
Income level: not limited
Number of employees: unlimited
Type of business: any
DOS or the general taxation system is the basic, basic business taxation system. If during the registration of a business, an entrepreneur has not balance sheet desire to apply a special tax regime, then after registration, he will automatically be assigned a DOS. It is considered the most difficult and burdensome for business – the highest tax burden, complex accounting and reporting, the need to calculate VAT …
A lot of cons. But on the other hand, DOS gives an entrepreneur a blank check – you can choose any type of activity, there are no restrictions on income levels and the number of employees. And assigned by default – there is no need to submit any application.
Pros and cons of DOS
There are no restrictions on activities, revenue and number of employees;
You can reimburse VAT paid to counterparties as part of the price for goods / services.
You need to pay all the basic taxes, plus additional depending on the type and conditions of the activity (for example, the mineral extraction tax);
Complicated accounting, reporting and interaction with tax authorities;
The highest tax burden;
You must calculate and pay VAT.
• OCH is optimally suited 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 for large customers using DOS, and therefore working with VAT.
For small and medium businesses, special tax regimes may be more convenient and profitable. They are just created to simplify the life of entrepreneurs: instead of several different taxes provided for by DOS, they establish a single tax. It is much easier to keep records and report on them.
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 participation of another organization in the authorized capital or in shares: no more than 25%
The presence of branches: prohibited
The simplified taxation system can be applied by organizations and individual entrepreneurs with a staff of up to 100 people and an income level of not more than 150 million rubles per year. The residual value of fixed assets of the organization should not exceed 150 million rubles, and the share of participation of other organizations can not be more than 25%. In addition, the company is prohibited to open branches and representative offices.
It is possible to choose USN when submitting documents for registering a business or after registration — by sending a corresponding notice to the FTS within 30 days. You can switch to the “simplified payment system” from another taxation system, provided that according to the results of 9 months of the year in which the notice of the change is submitted, the revenue of your company did not exceed 112.5 million rubles.