How to choose a tax regime

Individual entrepreneurs and commercial organizations are required to pay taxes in accordance with tax laws. For those who are just starting to do business, it can be difficult to understand the rules governing the payment of taxes. This, in particular, concerns the choice of the tax regime.

Instruction manual

1

Understand the tax regimes established by law for different types of activities. The general and special taxation regimes are divided, including a simplified system, a patent system, a single tax on imputed income. Special regimes often regulate specific activities, such as retail or agriculture.

2

If your company is large enough, and the range of contractors is wide, opt for a general tax regime. When working under this tax regime, it is important to ensure the completeness and reliability of accounting for expenses, income and business transactions.

3

Consider using a simplified tax system (STS). For this tax regime, there are two types of objects of taxation: income and income minus expenses. The first is most suitable for those types of business where there are no serious expenses, for example, for the maintenance of an office or the remuneration of employees. If the activity involves significant costs, you should choose as an object the income reduced by the amount of expenses.

4

Keep in mind that companies operating on a simplified system are exempt from corporate property tax and VAT. In some cases, a business is also exempt from paying income tax. To switch to this type of taxation, when registering an enterprise, it is enough to file an application with the tax authority.

5

Specify what are the rules for conducting business on the basis of a single tax on imputed income in the territory of your constituent entity of the Russian Federation. As a rule, UTII is introduced by local authorities for specific types of activities, for example, repair services, consumer services, retail, and so on. The transition to UTII exempts the company from paying value added tax and property tax. You can not transfer to this type of taxation the whole enterprise, but only a part of it, for example, one of the stores.

6

If your individual company has a staff of no more than fifteen people, and the revenue for the year does not exceed 60 million rubles, consider using a patent tax system. A patent is granted for a specific type of activity; if the enterprise is diversified, you will need to obtain several patents. The cost of a patent is established taking into account its validity and the probable revenue that the company may receive.