How to choose a tax system for individual entrepreneurs in 2017
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The most important stage in starting a business is the right choice of tax system. Existing legislation on taxes and fees allows an individual entrepreneur to choose the most appropriate tax payment system.
Instruction manual
1
The traditional or general taxation system requires the IP to pay all necessary taxes if it is not exempt from them. With this scheme, the entrepreneur must pay the following taxes and fees:
• personal income tax (PIT);
• value added tax (VAT);
• single social tax (UST);
• water tax;
• gambling tax;
• National tax;
• property tax on individuals;
• transport tax;
• land tax;
• insurance contributions for compulsory pension insurance;
• and etc.
Almost all entrepreneurs pay personal income tax, VAT, UST and property tax. Payment of other taxes depends on the activities of the individual entrepreneur.
2
In addition to the general taxation system, there are several tax regimes, one of which is the simplified taxation system (STS). This system is voluntary and provides for the payment of a single tax, while the payment procedure remains the same. STS exempts from payment of personal income tax, VAT, single social tax and property tax of individuals.
3
An entrepreneur can pay taxes on the UTII system (a single tax on imputed income). In this case, the tax is paid only from the amount of the imputed income established by law. Such a taxation system provides for the payment of the following taxes:
• UST, • PIT, • Property tax on individuals, • VAT.
At the same time, UTII does not exempt from the payment of transport, land taxes, as well as state duties, excises, etc. In addition, the taxpayer is obliged to make insurance contributions, social insurance contributions in case of accidents and pay personal income tax for his employees. The entrepreneur can use the UTII system if:
• In the territory where the activity is carried out, UTII has been introduced, • The activities of an entrepreneur are mentioned in local legal acts, among the types of entrepreneurial activities taxed by this tax.
note
Taxation system for individual entrepreneurs. Each individual entrepreneur should be especially responsible in choosing the taxation system that he will work in the future, because it will depend on it the degree of complexity of tax and accounting, as well as what combination of mandatory taxes he will need to calculate and pay to the budget.
Useful advice
OSNO - general taxation system. If the organization or individual entrepreneur did not write during registration any statements about the application of simplified regimes, then they will automatically fall into the OSNO. Organizations at the OSNO keep accounting in full, entrepreneurs keep a book of accounting for income and expenses and business transactions, and they are also required to pay all common taxes: VAT, income tax (for entrepreneurs - personal income tax), property tax.
