Who is eligible for tax holidays? Tax holidays for individual entrepreneurs in the regions

Today, the opening of individual entrepreneurship in the Russian Federation has some difficulties. Such difficulties include the financial situation of a person who plans to open his own business. To support small businesses, the country's authorities have developed a special program. This program also includes the introduction of tax holidays.

What is a tax holiday

This is a statutory tax relief for individual entrepreneurs. Thanks to these concessions, a novice businessman can carry out tax accounting at a zero rate for a certain period of time. However, it should be borne in mind that tax holidays do not remove a person from paying mandatory contributions to the Pension Fund both for himself and for those working for him.

Legal framework, innovations

The possibility of using benefits in taxation is conditioned by Federal Law No. 477 of December 29, 2014. According to this regulatory act, tax holidays can be used one-time over a certain period of time. However, this possibility is not available in all regions of Russia. The regional authorities of the subjects in which benefits are allowed have the right to adjust the conditions for the implementation of a regulatory legal act at their discretion. The adjustment directly depends on the economic situation in a particular region.

Reasons for taking vacation

Only those individual entrepreneurs who meet the following requirements can receive tax holidays:

1. Individual entrepreneurship must be registered for a person for the first time in his life;
2. The period of time elapsed from the moment of registration of entrepreneurship should be no more than two years;
3. Human activity should be associated with certain areas. These include industrial, scientific and social;
4. Profit from these areas of activity cannot be less than 70% of the total income;
5. The taxation regime can only be the simplified tax system and PSN.

The above are only general requirements. In addition to them, regional authorities may introduce requirements regarding the total annual profit, the size of the staff, etc.

A person who wants to receive tax holidays needs to understand in detail the rules established not only at the federal level, but also at the regional level.

When can I apply for tax holidays?

Registration of these benefits in taxation for individual entrepreneurs is possible only for beginners. An entrepreneur will be able to receive them if the time from the date of registration of the business does not exceed two years. The legislation provides for a period of time during which such vacations can be assigned to individual entrepreneurs. This is the period from 2015 to 2020 inclusive.

Benefits when opening an individual entrepreneur, simplified tax system

Tax relief can be granted to an individual entrepreneur who uses a simplified system. In this case, the tax rate will be 0.

Re-opening a sole proprietorship to qualify for tax holidays

Benefits are a good support when doing business. The money saved by taking into account these concessions, a businessman can invest in the development of his business. Therefore, some entrepreneurs want to close the IP and open it again to receive benefits. However, you need to know that such actions will not lead to anything. Only those who have registered for the first time are eligible for holidays. Moreover, the registration procedure had to take place at a time when the vacation law had already entered into force. Therefore, those who stopped their activities, and then resumed it again, will not receive the right not to pay taxes.

How to take advantage of tax holidays

In order to exercise the right to tax relief, you first need to study the regional requirements for a possible field of activity and for an individual entrepreneur. If a person's business meets these criteria, he can apply to the Federal Tax Service for a vacation.

How to apply for tax holidays for sole proprietorship

For registration, you must contact the tax service and apply for reporting under a simplified system. This can be done no more than a month after registration. Based on the fact that an individual entrepreneur uses a simplified system in the first two years after registration, he can pay a zero tax rate.

Documents for registration

When contacting the tax service, a person needs to apply for the right to use the simplified tax system. Certain documents are not required for the procedure.

The procedure for issuing a vacation for an individual entrepreneur

To complete the procedure, you need to follow several steps:

• Register individual entrepreneurship in a field that meets regional standards;
• Within one month, switch to a simplified taxation system. To do this, you must submit an appropriate application to the tax service;
• Pay taxes at zero rate.

A separate application for tax holidays is not required.

What payments will have to be paid, insurance premiums

Holidays imply only the payment of tax at a 0 rate. This does not exempt the entrepreneur from paying other mandatory contributions such as:

1. Contributions to the pension fund of the Russian Federation for yourself and employees;
2. Contributions to the social insurance fund;
3. Payments for employees, etc.

Terms of tax holidays

Tax exemptions are valid for two years or two tax periods. They are available from 2015 to 2020.

What types of activities are covered by the exemption in Moscow

Moscow is one of the regions in which the right to receive benefits is granted. As of 2018, the types of activities that fit under regional laws include the production of:

• clothes;
• Sports goods;
• Goods related to food;
• Finished furniture;
• Various types of shoes.

The list of entrepreneurial activities under the simplified system does not end there.

Other regional features of tax holidays

Despite the fact that tax holidays are approved at the federal level, the decision to introduce them in a particular subject is made by the regional authorities. In this regard, the requirements for IP in different regions may differ. In order to find out whether such benefits are valid in a particular region, you need to contact the tax service for information. This can be done both in person and over the phone. In addition, it should be borne in mind that the types of activities eligible for benefits may also differ depending on the region.

If an individual entrepreneur ceases to operate during the tax holidays, the consequences

If a person decides to stop his entrepreneurial activity while receiving a benefit, its effect in relation to him will be terminated. After re-registration, a citizen will not receive the right to a benefit. In addition, the effect of benefits is terminated if the individual entrepreneur violates the rules established by the regional authorities.

When registering an IP, it is imperative to clarify whether the above-described reliefs apply in the region. If they do, and the IP meets all the necessary requirements, then you should take advantage of this opportunity.

Many have heard about tax holidays for small businesses and probably when opening and/or running a business they wondered: “Will I be able to apply tax holidays?”. Indeed, the name itself sounds quite nice. But what exactly is a tax holiday? What do they exempt the taxpayer from? Who can use them and for how long? We will answer all these questions in the article. We will study tax holidays on the example of the Smolensk region.

History of tax holidays

January 1, 2013 was marked by an increase in the amount of insurance premiums for individual entrepreneurs by more than 2 times. This immediately led to a sharp reduction in their number in 2013. However, having abandoned their status, individual entrepreneurs continued to engage in entrepreneurial activities, but already illegally. According to the Ministry of Economic Development of the Russian Federation, for this reason, about 20-30% of Russians were operating in the shadow economy at the end of 2014. In addition, a significant part of small businesses, due to the difficult initial stage of their activities, already after 3 years or earlier come to the decision to terminate it.
In an attempt to bring back those who previously "went into the shadows" and "attract" new entrepreneurs, on November 11, 2014, the State Duma approved bill No. 634370-6 "On Amendments to Article 346.20 and Chapter 26.5 of the Tax Code of the Russian Federation" - bill). The bill approved the possibility of granting tax holidays to small businesses. However, the number of restrictions under which small businesses can take advantage of the holidays is unlikely to help achieve these goals. But first things first.

1. What is a tax holiday

So, tax holidays are a period during which an individual entrepreneur does not pay tax under the simplified tax system or PSN, or rather, has the right to apply the 0% rate. Thus, only individual entrepreneurs can use the benefit, micro and small enterprises do not have such an opportunity. The introduction of tax holidays is a right (and not an obligation) of a subject of the Russian Federation.

It is legally defined as follows. The laws of the constituent entities of the Russian Federation may establish a tax rate of 0 percent for taxpayers who are individual entrepreneurs registered for the first time after the entry into force of these laws and engaged in entrepreneurial activities in the industrial, social and (or) scientific fields, as well as in the field of consumer services to the population. The individual entrepreneurs specified in the first paragraph of this clause are entitled to apply a tax rate of 0 percent from the date of their state registration as an individual entrepreneur continuously for no more than two tax periods within two calendar years. (Article 346.50 of the Tax Code of the Russian Federation).

Consider the most important aspects of the application of tax holidays on the example of the Smolensk region.

2. Law on tax holidays

The main regulatory documents governing the possibility of applying tax holidays are:
1) for the USN - art. Art. 346.20 of the Tax Code of the Russian Federation, for PSN - art. 346.50 of the Tax Code of the Russian Federation. They contain restrictions common to all taxpayers;
2) Laws of subjects of the Russian Federation. They establish the possibility of applying tax holidays in a particular region, as well as a list of activities that an entrepreneur must conduct, and other conditions for holidays. In the Smolensk region, this is the Law of the Smolensk region dated April 21, 2016 No. 43-z (hereinafter referred to as the Smolensk regional law).

3. Who can take advantage of tax holidays

We have already indicated two restrictions in the very definition of tax holidays - this is the legal form (only individual entrepreneurs) and the taxation system (only the simplified tax system or a patent).

Tax holiday restrictions

• Tax holidays can apply and those who first registered as IP after the entry into force of the regional holiday law, and those who have resumed activities. The Smolensk Regional Law was adopted in 2016 and provides for tax holidays for individual entrepreneurs who first registered on January 1, 2017. Note! Previously, the Ministry of Finance was of the view that only newly registered individual entrepreneurs can take advantage of tax holidays (letters of the Ministry of Finance of Russia dated July 12, 2016 No. 03-11-11 / 40882, dated April 8, 2015 No. 03-11-10/2204). However, in a letter dated January 15, 2019, taking into account judicial practice, his position changed. Individual entrepreneurs who have ceased their activities, but decided to resume it for the first time after the start of the law of the Subject of the Russian Federation establishing tax holidays, can use them. The following is specifically stated: From the literal content of paragraph 4 of Article 346.20 and paragraph 3 of Article 346.50 of the Tax Code, it follows that the condition for applying the 0 percent tax rate is the start (resumption) of official entrepreneurial activity by a citizen for the first time after the start of the relevant law of the constituent entity of the Russian Federation, and not after throughout the life of the citizen. Consequently, individuals who previously had the status of individual entrepreneurs and ceased their activities, but decided to resume it for the first time after the start of the law of the constituent entity of the Russian Federation, which establishes a tax rate of 0 percent. A different approach would not meet the principle of equality of taxpayers, leading to a differentiation of their rights not based on objective criteria (a review of the practice of courts considering cases related to the application of chapters 26.2 and 26.5 of the Tax Code of the Russian Federation);

• 2 years. Holidays start from the day of registration of an individual entrepreneur and last until December 31 of the next year inclusive (for a patent - continuously no more than two tax periods within two calendar years);
• Regional authorities can set a zero rate for individual entrepreneurs for any period, but only until the end of 2020. This is enshrined in paragraph 3 of Art. 2 of the Law of December 29, 2014 No. 477-FZ "On Amendments to Part Two of the Tax Code of the Russian Federation" and approved in the Smolensk Regional Law. The laws of other regions may have shorter periods of validity (for example, until the end of 2018).

What should an entrepreneur do who registered in the last year of the regional law? The answer to it can be found in the letter of the Ministry of Finance of Russia dated August 13, 2015 No. 03-11-10 / 46827. It considers the issue of applying tax holidays when registering an individual entrepreneur in 2017 in the Ryazan region. In the specified region, the regional law is valid until January 1, 2018. The Ministry of Finance made the following conclusion: IP has the right to apply the tax rate of 0%, established by the law of the region, continuously for two tax periods. After all, according to the Ministry of Finance, the wording “this law is valid until December 31, 2017” limits the duration of the law, and not the period of vacation.

• Tax holidays may be granted for business activities in industrial, social, scientific spheres, as well as in the field of personal services. Specific types of activities for which the zero tax rate is applied are given in Annexes 1 and 2 to the Smolensk Regional Law. Here are some examples for the USN:
  - activities from Section A "Agriculture, forestry, hunting, fishing and fish farming" OKVED;
  - Section C "Manufacturing" OKVED ...
• At the end of the year share of sales revenue received in the framework of the "preferential" type of activity, must be at least 70% of the total income from implementation. When an individual entrepreneur conducts several types of activities, one or more of which fall under tax holidays, he is obliged to organize separate accounting of income;
• The laws of the subjects may (but not necessarily) introduce restrictions on the number of employees and the maximum income of an entrepreneur. The regional authorities of the Smolensk region took advantage of this right and introduced the following restriction for individual entrepreneurs on the simplified tax system: income from activities for which the 0% rate is used cannot exceed 1/10 of the maximum income established by clause 4 of article 346.13 of the Tax Code of the Russian Federation, i.e. . 15 million rubles

4. What tax holidays are exempt from

Nothing is released. From the payment of other taxes - property, personal income tax on employee income and insurance premiums - an individual entrepreneur is not exempt from tax holidays and pays like everyone else (for contributions, see Letter of the Ministry of Finance of Russia dated October 18, 2017 No. 03-11-11 / 68194 ). In addition, tax holidays do not exempt individual entrepreneurs from submitting a declaration on the simplified tax system, and, accordingly, from maintaining a book of accounting for income and expenses.

5. How to start using tax holidays

The Tax Code of the Russian Federation does not provide for the submission of any special application for the transition to tax holidays. If you meet all the conditions established by the Tax Code of the Russian Federation and regional law, then calculate the tax at a zero rate and indicate it in the reporting.

6. How to stop using tax holidays

In case of violation of restrictions on the use of tax holidays, the IP is considered to have lost the right to use them and is obliged to pay tax at the tax rates provided for in paragraphs 1, 2 or 3 of Art. 346.20 or paragraphs 1 and 2 of Art. 346.50 of the Tax Code of the Russian Federation, for the tax period in which these restrictions are violated. Upon the expiration of the use of tax holidays by the taxpayer, the amount of tax paid in connection with the application of the simplified tax system or PSN is calculated using the tax rate in accordance with the generally established procedure (letter of the Ministry of Finance of Russia dated 07.09.2015 No. 03-11-11 / 51379).

Results

In the article, we considered tax holidays for individual entrepreneurs. We talked about the fact that entrepreneurs on the simplified tax system and PSN, engaged in activities in the industrial, domestic, social and scientific fields, can use them. Specific activities within the framework of the above are established by regional laws. These are rather limited lists, and the types of activities in them are often of little interest to individual entrepreneurs.

If your type of activity is still on the list of regional law, remember that an individual entrepreneur can apply tax holidays only once in his life and only at the first registration. The duration of use of the benefit is continuously for 2 tax periods within 2 calendar years. To get the maximum benefit, if possible, do not open an IP at the end of the year. Entrepreneurs during the holidays are not exempt from paying insurance premiums, property and salary taxes. Despite the fact that during the holidays you do not need to pay tax on the simplified tax system, you must submit a declaration for the year indicating the tax rate of 0%.

Firmmaker , November 2017
Irina Bazyleva
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I understood correctly, I am submitting a package of documents for registering an individual entrepreneur (application, passport, TIN, certificate of no criminal record), and only when I receive the status of an individual entrepreneur,
Evgenia

Evgenia, good afternoon! As a colleague noted, no special application is required for the possibility of applying a zero tax rate - a general package for registering an individual entrepreneur and the compliance of the types of activities carried out with those for which the law of a constituent entity of the Russian Federation provides for the application of a zero rate. An example of clarifications from the Ministry of Finance, Well, as an individual entrepreneur, you must be registered for the first time, i.e. if there was an individual entrepreneur before and it was closed, then for the newly opened individual entrepreneur, the zero rate can no longer be applied

Letter of the Ministry of Finance of Russia dated December 26, 2014 N 03-11-11 / 67731

The Department of Tax and Customs Tariff Policy, in connection with the letter, considered the appeal on the introduction of tax holidays for newly registered individual entrepreneurs and reports the following.
On December 16, 2014, the State Duma of the Federal Assembly of the Russian Federation adopted the Federal Law “On Amendments to Part Two of the Tax Code of the Russian Federation” (draft N 634370-6) (hereinafter referred to as the law).
The said law proposes to grant the right to the constituent entities of the Russian Federation to introduce tax holidays in the form of a zero tax rate for two years for taxpayers - individual entrepreneurs, registered for the first time after the entry into force of the relevant laws of the constituent entities of the Russian Federation and switched to a simplified or patent taxation system.
Tax holidays may be granted in relation to entrepreneurial activities in the industrial, social and (or) scientific fields.
In order to be eligible for tax holidays under the relevant special tax regime, the share of the taxpayer's income from the specified types of entrepreneurial activity in the total income must be at least 70 percent.
The law also proposes to give the constituent entities of the Russian Federation the right to establish restrictions on the application of a zero tax rate for individual entrepreneurs in terms of the average number of employees and the maximum amount of income from sales for privileged types of activity (but not more than 10 times) for those who apply tax holidays.
If the corresponding law is adopted, the subjects of the Russian Federation will be given the right to adopt laws on the establishment of tax holidays starting from the current year, so that the relevant laws come into force in 2015.
Legislative norms on the possibility of granting tax holidays by the subjects of the Federation will be valid until 2020 inclusive.
Thus, if the relevant law is adopted, on issues related to the possibility and procedure for granting tax holidays in the Stavropol Territory to individual entrepreneurs operating in the industrial, social and (or) scientific spheres, one should contact the representative bodies of the Stavropol Territory.

This article will answer the following questions: 1) The duration of tax holidays for individual entrepreneurs; 2) Taxes that must be paid during the holidays; 3) Is an individual entrepreneur allowed not to keep records under the simplified taxation system and the patent system?

"Tax holidays" for individual entrepreneurs: who can avoid paying taxes

Source: BukhOnline.ru

On December 16, 2014, the State Duma adopted a federal law giving the constituent entities of the Russian Federation the opportunity to introduce "tax holidays" for. What kind of taxes can be avoided? Who and under what conditions will be exempted from paying them? Does the law apply to small organizations? You will find answers to these and other questions in this article.

The adopted law provides that any subject of the Russian Federation in the period from January 1, 2015 to December 31, 2020 has the right to issue a law establishing a zero tax rate for newly registered individual entrepreneurs operating in the industrial, social and scientific fields. The zero rate can be established only in relation to the simplified and patent systems of taxation.

If the regional authorities adopt the relevant law, then the zero rate can be applied from the date of registration as an individual entrepreneur continuously for two tax periods (that is, two calendar years). Recall that the moment of state registration is recognized as the registration body making an entry in the EGRIP (clause 2, article 11 of the federal law of 08.08.01 No. 129-FZ).

Regions where tax holidays for entrepreneurs on the simplified tax system and PSN

Note : .pdf 187 Kb

Note: Please note that from January 1, 2019, tax holidays for entrepreneurs on the simplified tax system and PSN have been canceled in the Stavropol Territory and the Kaliningrad Region

We also note that, within the framework of the law, newly registered organizations will not be able to apply the zero rate. "Tax holidays" are provided only for individual entrepreneurs.

For taxpayers on the simplified tax system “income minus expenses”, the amount of a “simplified” tax is provided - 1 percent of income for the tax period (clause 6). However, within the framework of the “tax holidays”, individual entrepreneurs will also be exempted from it.

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Who is considered a "first-time registered" IP

Please note that “first-time registered” entrepreneurs who will be able to claim benefits will be considered those individuals who register as individual entrepreneurs after the law on “tax holidays” is adopted in their region. For already registered individual entrepreneurs and for those who register after the commented federal law comes into force, but before the adoption of the relevant law of the constituent entity of the Russian Federation, "tax holidays" will not apply. We also note that those who have already ceased their activities as individual entrepreneurs will not be able to apply the zero rate, but will register again next year (since the law explicitly states that we are talking about those who registered for the first time).

For those who plan to register as an individual entrepreneur, we recall:

• you can start applying the simplified tax system on the date of registration with the tax authority. To do this, within 30 calendar days from the date of registration (which is indicated in the issued certificate), you must notify the tax office (clause 2);
• to carry out entrepreneurial activities based on a patent from the date of state registration, an application for a patent should be submitted simultaneously with documents for registration as an individual entrepreneur (paragraph 2, clause 2).

Re-registered individual entrepreneurs on the simplified tax system can take advantage of "tax holidays"

The zero tax rate for a single tax within the framework of the simplified tax system can also be applied by those entrepreneurs who previously ceased operations and were deregistered, but after the entry into force of the regional law on “tax holidays”, they received IP status again. Such a conclusion is contained in the letter of the Ministry of Finance of Russia dated January 15, 2018 No. 03-11-11 / 904.

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What types of activities give the right to benefits for individual entrepreneurs during tax holidays, what are the restrictions

The zero rate, we repeat, can be applied only if the individual entrepreneur is employed in the industrial, social and scientific fields. But what activity is meant by this? The subjects of the Russian Federation will have to answer this question and establish such types of activities on the basis of the All-Russian Classifier of Services to the Population and (or) the All-Russian Classifier of Economic Activities. Moreover, different subjects will be able to establish different types of "preferential" activities.

What restrictions can be set for tax holidays for individual entrepreneurs

Regional authorities have the right to establish restrictions for individual entrepreneurs to apply a zero rate, namely:

• provide for restrictions on the average number of employees at individual entrepreneurs;
• provide for the maximum amount of income from sales that will be received by IP from a “preferential” type of activity.

We also note that if during the period of "tax holidays" an individual entrepreneur who first registered on a "simplified" tax system will apply a zero tax rate, then at the end of the tax period (that is, a calendar year), income from the sale of goods (works, services) from "preferential" activities should account for at least 70 percent of the total sales revenue. This requirement applies to all entrepreneurs, regardless of in which subject of the Russian Federation the activity is carried out.

If, in the tax period, the individual entrepreneur violates any of the above restrictions, then taxes will need to be recalculated for the entire tax period at the usual tax rates.

For those who will be engaged in different types of activity, we note that the commented law does not prohibit combining patent activity with a zero rate with other patent activity (for which a regular rate is set).

However, in this case, separate accounting of income will be required.

In addition to the above, please note the following:

• subjects of the Russian Federation have the right, but are not obliged, to introduce "tax holidays" for individual entrepreneurs;
• "tax holidays" do not provide for the exemption of newly registered individual entrepreneurs from paying insurance premiums to extra-budgetary funds (for the amount of contributions, see ");
• now the maximum amount of income under the simplified tax system is 60 million rubles (excluding) (clause 4). As part of the restrictions on the use of "tax holidays", regional authorities will be able to limit the maximum income of individual entrepreneurs on the "simplification". But they can reduce the above amount by no more than 10 times.

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Which of the entrepreneurs can apply 0% rates for the simplified tax system and PSN

First of all, in the region where the entrepreneur is registered, a law must be adopted to reduce the rate in accordance with federal law 477-FZ. As of September 1, 2015, laws have been adopted in 57 regions. But some laws will come into force only from 2016 (for example, in St. Petersburg, Irkutsk, Nizhny Novgorod regions and the Republic of Kalmykia). And in some regions, laws relate to only one taxation system - in St. Petersburg, the Volgograd region and the Krasnodar Territory, only the simplified tax system, in the Altai Territory, only the PSN.

But even if the law is adopted in the region, not all activities fall under the 0% tax rate. Regional laws indicate a list of activities that fall under "tax holidays", and these types can only apply to the production, social or scientific field of activity (Clause 4 and Clause 3 of the Tax Code). And the assignment of this or that activity to these areas should be determined by the OKUN and / or OKVED classifiers. However, many regions have taken this list quite freely and in their laws mention activities that are clearly not related to these three areas of activity. So, in the Murmansk region, they managed to include street sweeping in the law, although it does not belong in the classifiers to either social, let alone industrial areas of activity. And in the Moscow region, for some reason, the transportation of goods by road and water was included. In addition, there is confusion with the OKVED classifier, since in 2015 there are three classifiers operating simultaneously: two old ones, OKVED OK 029-2001 and OK 029-2007 (NACE Rev. 1.1) and the new OK 029-2014 (NACE Rev. 2). Not all regional legislators, using codes from OKVED, consider it necessary to indicate in the law which classifier they mean.

If an entrepreneur is going to conduct several types of activities, some of which are not specified in the regional law, it must be borne in mind that in order to apply the zero rate on the simplified tax system, income from “preferential” types of activities must be at least 70% of the total income for the tax period.

Is your type of activity specified in the regional law? This does not mean that you already have the right to apply the zero rate. An entrepreneur must be registered for the first time after the adoption of a regional law and its entry into force. Thus, "tax holidays" do not apply to those persons who were previously registered as individual entrepreneurs, but for one reason or another ceased to be so. In some regional laws, there is a wording that the law extends its effect to legal relations that arose from January 1, 2015, for example, in the Law of the Udmurt Republic dated May 14, 2015 N 32-RZ. Those. Entrepreneurs registered after January 1, 2015 are entitled to apply the zero rate on the simplified tax system and PSN in Udmurtia.

Regional laws may establish two more restrictions on the application of zero rates: on the average number of employees and on the maximum amount of income from sales. At the same time, the regions cannot set the maximum amount of income less than 6 million rubles. Thus, in the law of the Krasnodar Territory, the maximum average number of employees is 15 people and the income limit is 15 million rubles.

And one more condition for the application of the 0% rate is established by the Tax Code - such a rate can be applied for no more than two tax periods. In this case, the first tax period is the year of registration of an individual entrepreneur. Even if an individual entrepreneur is registered in December 2015, 2015 will be considered the first tax period and he will be able to apply the preferential rate only until the end of 2016.

Businessmen acquire patents by type of activity. You can get patents for privileged types of business for free. You will have to pay for other patents for non-preferential types of business.

Zero rates under the simplified tax system for all types of activities ("holiday" and others) are applied for two tax periods if the following conditions are met:

• an entrepreneur conducts business in the industrial, social or scientific sphere, as well as in the provision of personal services to the population (specific types of entrepreneurial activity are determined by regional authorities);
• income from such activities is at least 70 percent all income of the entrepreneur.

At the same time, if the condition of the 0% rate on the simplified tax system ("tax holidays") is met, then all incomes are indicated in the declaration on the simplified tax system, but the rate is 0%. At the same time, it is necessary to keep records of income by type of activity on "holidays" and others.

If, following the results of the first tax period, an entrepreneur violates the condition on the ratio of income, he will not be able to apply the zero rate during the second tax period (letter of the Ministry of Finance dated 02.02.2018 No. 03-11-12 / 6073).

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To be able to apply the 0% rate on the simplified tax system and PSN:

• in your region, a law on "zero rates" for the types of activities that you are going to conduct must be passed
• you must be registered after this regional law comes into force
• you must comply with the conditions for revenue limits and the average headcount, if they are specified in the regional law, as well as the condition for income from preferential activities of at least 70% of the total income for the tax period (if you apply the simplified tax system).

What you need to do to start applying the 0% rate

If an entrepreneur plans to apply the simplified tax system (no matter what object of taxation), it is enough for him to submit a regular notice of registration and simply apply the zero rate in the future.

If the entrepreneur is going to apply PSN for some type of activity, then you need to apply for a patent on and indicate on the second page of the application the applicable tax rate, as well as a link to the norm of the regional law, according to which this rate is applied. R

Note: the requisites of the regional law, as well as the article and paragraph that set the rate of 0% for the type of activity indicated in the application.

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What should be taken into account when applying the zero rate for the simplified tax system and PSN

As already mentioned above, apply such rate is possible only during 2 tax periods. Wherein the year of registration of an individual entrepreneur is considered the first tax period. After two tax periods, the entrepreneur will have to apply the usual rates for the simplified tax system and SIT.

When applying the zero rate for the SIT, it should be borne in mind that if several types of activities are carried out, some of which do not fall under the preferential rate, then it is necessary to keep separate records of income (paragraph 3 of the Tax Code.). There is no requirement to keep separate records of income under the simplified tax system.

When applying the simplified tax system with the object “income reduced by the amount of expenses”, when using the 0% rate, there is no minimum tax.

In case of loss of the right to apply the zero rate for one reason or another, the entrepreneur is obliged to pay tax at the usual rates of the simplified tax system or SIT from the beginning of the tax period. The beginning of the tax period under the simplified tax system is the date of registration of the individual entrepreneur (in the first tax period) and January 1 (in the second tax period). Under PSN, the start date of the tax period is the start date of the patent. And if under the simplified tax system there are no particular problems with the recalculation, then with the PSN there is one nuance that is not specified in the Tax Code. The fact is that if a patent is obtained for a period of 6 months to a year, 1/3 of the tax must be paid within 90 days from the start date of the patent. And you can lose the right to a zero rate later, i.e., for example, after 100 days. And it turns out that the payment deadline will be violated, and in case of violation of the payment deadlines, the right to PSN is lost. Thus, it may turn out that not only the right to a zero rate will be lost, but also the right to apply a patent in general for the entire tax period. It is not yet clear how this situation will be interpreted by tax inspectors. Therefore, to avoid this problem, you should not take a patent for a period of more than 6 months. After all, there can be several patents per year, you can buy a patent even for 1 month.

And in conclusion, I would like to remind entrepreneurs that "tax holidays" do not exempt from paying fixed contributions to the Pension Fund, as well as from paying personal income tax and contributions to funds from employees' wages.

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Loss of the right to use holidays

If there is a non-compliance with the requirements for receiving holidays, additional tax is charged on the "simplified" or patent from the moment the tax reporting begins. The tax is calculated at the standard rate. If you lose the opportunity to use holidays, the company will no longer be able to work at a zero rate in subsequent periods.

1. Take advantage of tax holidays can be individual entrepreneurs working on a simplified or patent taxation system, engaged in production, research, social activities, or providing services in everyday life;
2. During holidays, the company is not exempt from paying insurance premiums, salary and property taxes;
3. Must file a tax return.

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Which regions have tax holidays in 2017?

The Ministry of Finance published on its website a list of regional laws that introduce "tax holidays" or reduce tax rates for individual entrepreneurs on the simplified tax system and PSN.

Information on tax holidays in the regions (contains data as of March 1, 2017) is presented in the form of a table. One column contains the details of regional laws, and the other two list the types of business activities that fall under the application of a zero rate for "simplified" and "patent" taxes.

The website of the Ministry of Finance posted an updated list of regions in which there are "tax holidays"

The Ministry of Finance published an updated list of regional laws, which introduced "tax holidays" or reduced tax rates for individual entrepreneurs on the simplified tax system and PSN. The list contains data as of July 1, 2017.

Under the table, the Ministry of Finance provided information on reduced rates in Crimea and Sevastopol. In these regions, the following rates apply for the period 2017-2021:

With regard to the SIT for all categories of taxpayers - 4 percent.

With regard to the USN:

• 4 percent - if the object of taxation is "income" (with the exception of certain categories of taxpayers in Sevastopol, for whom the rate is 3 percent);
• 10 percent - if the object of taxation is "income minus expenses" (with the exception of certain categories of taxpayers in Sevastopol, for whom the rate is 5 percent).

Extern - Small business
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   When registering, an individual entrepreneur must choose one of the taxation regimes. The general mode (OSNO) is used by default, but it is also possible to select a patent, USN, UTII or ESHN.

Small business in Russia, despite the ongoing legislative efforts of the state, does not, alas, feel a sense of real support. The problem here is not only that on the ground many of the government's initiatives "fade to naught." There is also a lack of legal literacy among entrepreneurs themselves, which allows them to receive tax preferences, including small business tax holidays…

Therefore, only one out of ten novice businessmen understands what tax holidays are in principle, what types of activities fall under tax holidays, and how tax holidays can be secured in 2019. This article is written to remove all questions about tax holidays for individual entrepreneurs in 2019.

Tax holidays for individual entrepreneurs as they are: 5 important facts

Learn more about tax holidays for sole proprietorships

All of the above points indicate that the 2019 tax holiday is more of a myth than a reality. However, in sports terminology, “until the last game is lost, the game is not lost”, which means that it is necessary to use the opportunities provided by the state to the end. Moreover, statistics show an increase in the number of individual entrepreneurs going on vacation.

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A useful video on the topic will help you understand the intricacies of Tax Holidays:

How to get tax holidays for individual entrepreneurs in 2019?

Terms of tax holidays for individual entrepreneurs from the Federal Tax Service

The action plan of a novice IP should be as follows:

Remember that the duration of the holidays is the first two tax periods in a row (continuously) from the moment of registration or transition to the simplified tax system (patent). Therefore, it is better to “leave for the holidays” from January 2019. Then you will receive two full years (2019 and 2020) at a zero rate.

You can find out about tax holidays in the regions on the official website of a particular region.
If you have any questions on the topic, please ask them in the comments to the article.

Tax holidays for individual entrepreneurs in 2019 updated: April 12, 2019 by: All for IP