The simplified tax system lives up to its name, really simplifying reporting and reducing tax pressure for individual entrepreneurs.

In addition, the legislation provides options for reducing contributions for those who have chosen this tax format. You can reduce payments under the simplified tax system both for contributions for yourself and for contributions for employees.

In our material today, we will tell our readers about how to reduce the simplified tax system for individual entrepreneurs on insurance premiums in 2019.

In order not to lead the reader onto the wrong trail, let us explain the title of this paragraph of the article “Reducing the simplified tax system for individual entrepreneurs 6%”. 6% is the maximum rate of one of the types of simplified tax system “Income”. The tax rate for this tax regime is set by local legislative authorities and can vary from 0% to 6%.

Reducing the simplified tax system for individual entrepreneurs 6%: grounds and procedure

The law makes it possible to reduce the simplified tax system for individual entrepreneurs on insurance premiums. In terms of fixed contributions that an individual entrepreneur is obliged to pay for himself, this type of tax can be reduced by 100%. The only condition for such a recalculation is that the entrepreneur must work alone, without hired employees.

Moreover, only the amount of contributions determined by law for the current year is taken into account for the reduction. Overpayment of contributions does not reduce the simplified tax system. If the amount of insurance premiums you paid exceeds the amount established by the Tax Code of the Russian Federation, then you cannot reduce it by the amount paid in excess of the required amount. The resulting overpayment of the simplified tax system can be offset only for payment of future periods, i.e. next calendar year.

Overpaid contributions will not be counted towards payment of future periods, but you can return them. You can download the application form for refund of overpaid fees after you finish reading this material.

The legislation of the Russian Federation for 2019 determines the following amounts of fixed contributions:

• for medical insurance - 6,884 rubles;
• for pension insurance - 29,354 rubles.

In the case of hiring employees, a different rule comes into force. Pension and health insurance contributions, which must be paid both for the individual entrepreneur and for the employees, cannot be reduced by more than 50% of the amount of the accrued tax under the simplified tax system.

Only contributions actually paid can be reduced and only in the quarter in which the payment was made.

Moreover, only the amount of contributions determined by law for the current year is taken into account for the reduction. Overpayment of contributions does not reduce the simplified tax system. The resulting overpayment can only be offset to pay for future periods, i.e. next calendar year. To do this, you must submit to the Federal Tax Service an application approved by order of the Federal Tax Service of Russia dated February 14, 2017 No. ММВ-7-8/182@. You can download a sample application at the bottom of the article.

Let's look at an example, how to reduce the simplified tax system for individual entrepreneurs for insurance premiums in 2018.

Let’s say an entrepreneur made insurance contributions to the above funds in the amount of 34 thousand rubles for the second quarter of this year. The amount of the advance payment is 25 thousand. The tax authorities can reduce the size of your payment by half, and 50% of the advance amount is 12.5 thousand. In reality, the individual entrepreneur will have to pay the remaining 12,500 rubles after deduction to the Federal Tax Service.

How to reduce the simplified tax system for individual entrepreneurs by 15%

Another option for reducing the simplified tax system for individual entrepreneurs on insurance premiums provides the right to reduce the amount under a special simplified tax regime of 15% (income-expenses). But here we are not talking about reducing the tax itself, but the tax base from which it is calculated.

The mechanism is as follows: contributions for the entrepreneur himself and for his employees will be included in the total expenses. Accordingly, when calculating according to the simplified tax system using the income-expense formula, the insurance premiums of all members of the individual entrepreneur will increase the expenditure portion and reduce the tax base. A tax of 15% will be deducted from it.

You just need to keep in mind that the 15 percent tax is not provided for all types of activities. If an enterprise has several work profiles, then it will be necessary for different areas. probably choose your tax format.

Simplified taxation system “Income” is the most popular item in the tax regime among small businesses. In another way, “6 percent,” and it is called so because this simplified tax system “Income” contains a 6% reduction in tax on contributions in 2018. But even this amount can be reduced due to some insurance premiums that individual entrepreneurs and employers pay. This reduction can be simply calculated in regulatory terms.

From the beginning, it is worth understanding the theory due to which taxpayers can reduce the simplified tax system from 6 percent in 2018 to 0. This is possible with a simplified taxation system, thanks to the existence of Article 346.21 of the Tax Code of the Russian Federation.

The article itself reads: “Taxpayers who have chosen income as the object of tax reduce the amount of tax (advance tax payments) …”. This can be done through various insurance contributions, so through these contributions you can reduce the tax according to the simplified tax system. How it works: the entrepreneur sends insurance premiums during the reporting year, and when reporting, these deductions work as a tax reduction.

The tax period for individual entrepreneurs using the simplified tax system is one calendar year, the reporting period is the first quarter, half a year and 9 months, after which it is necessary to calculate and pay advance payments, that is, taxes also with a decrease in insurance premiums. Payment deadlines are until the 25th of the month following the reporting month. All this is collected and stored in the income tax base.

Various questions arise: “How does all this work?”, “How to reduce, what can the simplified tax system be reduced by?”, “Can a similar effect apply to fixed contributions?” Let’s take a closer look: if an organization operating under the simplified tax system “Income” pays all the necessary insurance premiums for employees during the reporting period, then the calculated advance payment for the sales tax goes into a reduction by the amount of expenses.

Reducing these down payment amounts works differently depending on the availability of employees. Their absence can lead to a reduction of the 6% tax to zero, to a simplified one. A tax reduction under the simplified tax system in the presence of employees can only lead to fifty percent, even with all insurance contributions.

As a result, life is simplified for an individual entrepreneur by reducing general taxes on the simplified tax system for the amount of insurance premiums. Therefore, this is an excellent solution coupled with insurance premiums and the absence of employees.

How to reduce tax on the simplified tax system for individual entrepreneurs without employees

Let's consider the difference in taxes with and without employees. Let's start with entrepreneurship without labor resources and show the decrease using a popular example.

Example

The organization provides repair services, works on the simplified tax system and earned 937,000 rubles during the reporting period. We calculate all taxes and fees.

The amount of six percent tax is 56,220 rubles. There are also insurance premiums, which are calculated as follows: a fixed contribution of 32,385 rubles plus an additional contribution of 6,370 rubles, for a total of 38,755.

It turns out that the total amount payable for the period is 38,755 + 56,220 = 94,975 rubles. But the simplified tax system of 6% and the absence of employees allows the entrepreneur to pay only advance payments in the amount of 56,220 rubles, but this can also be reduced.

Although there are established deadlines for paying taxes for, to reduce the amount, you can pay deductions in installments each reporting quarter.

Cumulatively, it will all look like this:

• In the first quarter, with an income of 135,000, contributions are 8,000
• In the six months with an income of 418,000, contributions are 16,000
• For nine months with an income of 614,000, contributions are 24,000
• For a calendar year with an income of 937,000, contributions are 38,755

Now, using this example, you can find out the accrual and reduction of taxes for the year, taking into account contributions.

1. First quarter: 135,000 * 6% = 8,100 - contributions 8,000, balance 100 rubles.
2. Half-year: 418,000 * 6% = 25,080 - contributions for the half-year 16,000 and advance for the quarter 100, the balance is 8,980 rubles.
3. Nine months: 614,000 * 6% = 36,840 - contributions paid 24,000 and advances 100 + 8,980, balance 3,760 rubles.
4. Year: 937,000 * 6% = 56,220 - contributions 38,755 and advances 100 + 8980 + 3760, balance 4,625 rubles.

Indeed, the amount paid to the budget is only 56,220, and not 94,975, as it was initially.

If the entrepreneur nevertheless paid the entire amount at the end of the reporting period, he would have to pay each period in full, which would result in an overpayment.

To return this amount, after submitting the annual return, you can send a tax application requesting a refund or crediting the money to the account for future payments. However, this may attract the attention of the tax inspectorate, since such actions lead to advances of the budget.

How to reduce tax payments on the simplified tax system for individual entrepreneurs with employees

If the company has employees, advance payments, of course, can also be reduced, but only by 50 percent. But here payments are taken into account not only for individual entrepreneurs, but also for employees.

The insurance rate for an employee is 30% of wages and insurance:

• Pension - 22%
• Medical - 5.1%
• Social — 2.9%

You should also not forget about contributions to the Social Insurance Fund, which, depending on several criteria, range from 0.2% to 8.5%.

For entrepreneurs of certain types of activities, the tax rate for employees was reduced in 2018. Specifically, you can find out about this in 427 (5) of the Tax Code of the Russian Federation. This includes many types of production, construction, education, social and personal services, as well as some others. Such enterprises pay only 20% of pension insurance contributions for employees.

Let's look at an example of how the presence of employees makes a difference in tax payments.

Example

In 2018, an individual entrepreneur using the simplified tax system with one employee earned 1,780,450 rubles.

Contributions and income will look like this:

• In the first quarter, with an income of 335,000, contributions are 18,000
• In the six months with an income of 820,000, contributions are 36,000
• For nine months with an income of 1,340,250 contributions - 54,000
• For a calendar year with an income of 1,780,450 contributions - 78,790

The tax in this case will be 106,827, and the contribution for the employee will be 78,790. With a limit of 50%, the tax can be reduced to 53,413, even though the contributions paid are much higher. Therefore, it is not only the presence of employees that changes the scheme, but also preferential tax restrictions.

Using these examples, it becomes clear that there is a difference and it affects the system of payments that are necessary to reduce taxes under a simplified taxation scheme.

As a result, it turns out that the entrepreneur cannot use the “Income” system with an advantage for himself, regardless of his employees. However, everything needs to be done correctly and according to a clear pattern, in order to avoid possible violations due to insufficient knowledge of the tax system.

You can reduce only those contributions that you paid no later than the due date for payment.

simplified tax system

Income

Reducing the simplified tax system is a standard procedure. In the simplified tax system declaration

Individual entrepreneur without employees

Tax Code of the Russian Federation, art. 346.21, paragraph 3.1, subparagraph 3, last paragraph:
“Individual entrepreneurs who have chosen income as an object of taxation and do not make payments and other remuneration to individuals, reduce the amount of tax (advance tax payments) by insurance contributions paid to the Pension Fund of the Russian Federation and the Federal Compulsory Medical Insurance Fund in a fixed amount.”

An individual entrepreneur without employees can reduce the simplified tax system tax to 100% on all mandatory contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund

Example 1: The individual entrepreneur received an income of 1,000,000 rubles. In total, in 2017, he paid 27,990.00 rubles to the Pension Fund and FFOMS + 7,000 additional interest to the Pension Fund (total deduction 34,990). In total, at a rate of 6%, he must pay 60,000 rubles (1,000,000 * 0.06). But he can reduce the simplified tax system tax by the deduction amount of 60,000 - 34,990 = 25,510 rubles (final simplified tax system).

Example 2: The individual entrepreneur received an income of 400,000 rubles. In total, in 2017, he paid 27,990.00 rubles to the Pension Fund and FFOMS + 1,000 additional interest to the Pension Fund (total deduction 28,990). In total, at a rate of 6%, he must pay 24,000 rubles (1,000,000 * 0.06). But he can reduce the simplified tax system tax by the deduction amount of 24,000 - 28,990 = - 4,990 rubles (final simplified tax system). No, this does not mean that the tax office owes you. This means that no one owes anyone, the tax is 0 rubles, because... You can reduce 24,000 rubles by a maximum of 100%.

Indeed, there may be a situation in which the Federal Tax Service will remain in debt to the payer. This situation often occurs if there is little income in the 4th quarter and a large deduction. At the same time, there was a tax for previous quarters.

Individual entrepreneur

Tax Code of the Russian Federation, clause 3.1 art. 346.21 NK
3.1. Taxpayers who have chosen income as an object of taxation reduce the amount of tax (advance tax payments) calculated for the tax (reporting) period by the amount:
1) insurance contributions for compulsory pension insurance, compulsory social insurance in case of temporary disability and in connection with maternity, compulsory medical insurance, compulsory social insurance against industrial accidents and occupational diseases, paid (within the calculated amounts) in this tax (reporting ) period in accordance with the legislation of the Russian Federation;
2) expenses for payment of temporary disability benefits in accordance with the legislation of the Russian Federation

(except for industrial accidents and occupational diseases) for days of temporary disability of the employee, which are paid at the expense of the employer and the number of which is established by Federal Law of December 29, 2006 N 255-FZ "On compulsory social insurance in case of temporary disability and in connection with with maternity", to the extent not covered by insurance payments made to employees by insurance organizations that have licenses issued in accordance with the legislation of the Russian Federation to carry out the relevant type of activity, under agreements with employers in favor of employees in the event of their temporary disability (with the exception of accidents cases at work and occupational diseases) for days of temporary disability, which are paid at the expense of the employer and the number of which is established by Federal Law of December 29, 2006 N 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity”;
3) payments (contributions) under voluntary personal insurance contracts concluded with insurance organizations that have licenses issued in accordance with the legislation of the Russian Federation to carry out the relevant type of activity, in favor of employees in the event of their temporary disability (except for industrial accidents and occupational diseases) for days of temporary disability, which are paid at the expense of the employer and the number of which is established by Federal Law of December 29, 2006 N 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity.” The specified payments (contributions) reduce the amount of tax (advance tax payments) if the amount of insurance payment under such contracts does not exceed the amount of temporary disability benefits determined in accordance with the legislation of the Russian Federation (except for industrial accidents and occupational diseases) for days of temporary employee disability, which is paid at the expense of the employer and the number of which is established by Federal Law of December 29, 2006 N 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity.”
In this case, taxpayers (with the exception of taxpayers specified in paragraph six of this paragraph) have the right to reduce the amount of tax (advance tax payments) by the amount of expenses specified in this paragraph by no more than 50 percent.

An individual entrepreneur has the right to reduce the simplified tax system tax on all listed payments but up to 50%

At the same time, an individual entrepreneur can reduce the 4th quarter tax on December contributions paid in January (letter of the Ministry of Finance dated March 1, 2017 No. 03-11-11/11487).

Example: The individual entrepreneur received an income of 1,000,000 rubles. In total, in 2017, he paid 27,990.00 rubles to the Pension Fund and FFOMS + 7,000 additional interest to the Pension Fund + 30,000 employee insurance premiums (total deduction 64,990). In total, at a rate of 6%, he must pay 60,000 rubles (1,000,000 * 0.06). But he can reduce the simplified tax system tax by the deduction amount of 60,000 - 64,990 = -4,990 rubles. No, this does not mean that the tax office owes you. This means that you owe the tax office 30,000 rubles, because... You can reduce 60,000 rubles by a maximum of 50%.

Additional percentage

Can an individual entrepreneur reduce contributions by an additional percentage to the Pension Fund?

This issue was once controversial. But in the end, all departments now say unequivocally - yes it is possible!

For an additional 1% in the Pension Fund (it goes only to the insurance part, the FFOMS does not need it): there are 2 options:

1. Transfer 1% until December 31, 2017 and reduce the simplified tax system for 2017 (See Letter of the Ministry of Finance dated January 23, 2017 No. 03-11-11/3029.)
2. Transfer 1% in the period from January 1 to July 1, 2018 and reduce the simplified tax system tax for 2018 (See Letter of the Ministry of Finance dated January 23, 2017 No. 03-11-11/3029.)

Income-expenses

TC Article 346.16. Procedure for determining expenses
1. When determining the object of taxation, the taxpayer reduces the income received by the following expenses:
6) expenses for wages, payment of temporary disability benefits in accordance with the legislation of the Russian Federation; (as amended by Federal Law dated December 31, 2002 N 190-FZ)
7) expenses for all types of compulsory insurance of employees, property and liability, including insurance contributions for compulsory pension insurance, compulsory social insurance in case of temporary disability and in connection with maternity, compulsory medical insurance, compulsory social insurance against industrial accidents and occupational diseases , produced in accordance with the legislation of the Russian Federation;
22) amounts of taxes and fees paid in accordance with the legislation on taxes and fees

On the simplified tax system, income, expenses, insurance premiums can be fully included in expenses.

Unlike the simplified tax system, income here is reduced not by the simplified tax system itself, but by the tax base on which the tax is calculated.

UTII

Because UTII is a quarterly tax, then it is also more profitable to divide the amount of annual contributions of individual entrepreneurs and pay them by quarters. To make a deduction every quarter.

Reducing UTII tax is a standard procedure. The UTII declaration specifically provides lines for calculations for this purpose.

online KKM. The amount of UTII can be reduced by the amount of the online cash register purchase. But there is a limitation - no more than 18,000 rubles will be returned for one cash register.

Individual entrepreneur without employees

TC Article 346.32. The procedure and deadlines for paying the single tax, clause 2.1. paragraph 3
Individual entrepreneurs who do not make payments and other remuneration to individuals reduce the amount of the single tax on paid insurance contributions for compulsory pension insurance and compulsory medical insurance in the amount determined in accordance with paragraph 1 of Article 430 of this Code.

An individual entrepreneur without employees can reduce the UTII tax to 100% on all mandatory contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund

Individual entrepreneur

TC Article 346.32. The procedure and deadlines for paying the single tax, clause 2.1.
2.1. The insurance payments (contributions) and benefits specified in paragraph 2 of this article reduce the amount of the single tax calculated for the tax period if they are paid in favor of employees employed in those areas of the taxpayer’s activity for which the single tax is paid.
In this case, taxpayers (except for the taxpayers specified in paragraph three of this paragraph) have the right to reduce the amount of the single tax by the amount of expenses specified in paragraph 2 of this article by no more than 50 percent.
2. The amount of single tax calculated for the tax period is reduced by the amount:
1) insurance contributions for compulsory pension insurance, compulsory social insurance in case of temporary disability

and in connection with maternity, compulsory medical insurance, compulsory social insurance against accidents at work and occupational diseases paid (within the calculated amounts) in a given tax period in accordance with the legislation of the Russian Federation;
2) expenses for payment in accordance with the legislation of the Russian Federation of temporary disability benefits (except for industrial accidents and occupational diseases) for days of temporary disability of the employee, which are paid at the expense of the employer and the number of which is established by Federal Law of December 29, 2006 N 255-FZ "On compulsory social insurance in case of temporary disability and in connection with maternity", in the part not covered by insurance payments made to employees by insurance organizations that have licenses issued in accordance with the legislation of the Russian Federation to carry out the relevant type of activity, according to agreements with employers in favor of employees in the event of their temporary disability (except for industrial accidents and occupational diseases) for days of temporary disability, which are paid at the expense of the employer and the number of which is established by Federal Law of December 29, 2006 N 255-FZ "On compulsory social insurance in case of temporary disability and in connection with maternity";
3) payments (contributions) under voluntary personal insurance contracts concluded with insurance organizations that have licenses issued in accordance with the legislation of the Russian Federation to carry out the relevant type of activity, in favor of employees in the event of their temporary disability (except for industrial accidents and occupational diseases) for days of temporary disability, which are paid at the expense of the employer and the number of which is established by Federal Law of December 29, 2006 N 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity.” The specified payments (contributions) reduce the amount of the single tax if the amount of insurance payment under such contracts does not exceed the amount of temporary disability benefits determined in accordance with the legislation of the Russian Federation (except for industrial accidents and occupational diseases) for days of temporary disability of the employee that are paid at the expense of the employer and the number of which is established by Federal Law of December 29, 2006 N 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity.”

An individual entrepreneur has the right to reduce the UTII tax on all listed payments but up to 50%

At the same time, an individual entrepreneur can reduce the 4th quarter tax on December contributions paid in January (letter of the Ministry of Finance dated November 21, 2016 No. 03-11-11/76431).

Additional percentage

Individual entrepreneurs on UTII can also reduce UTII by an additional 1% in the Pension Fund. The cash method also applies here, in which contributions can be reduced for the period in which they were paid.

BASIC

On OSNO, individual entrepreneurs allow you to include in expenses any expenses that are listed in Chapter 25 of the Tax Code for income tax. Tax Code of the Russian Federation Article 255. Labor costs
16) the amount of payments (contributions) of employers under compulsory insurance contracts, the amount of contributions of employers paid in accordance with the Federal Law "On additional insurance contributions for funded pensions and state support for the formation of pension savings", as well as the amount of payments (contributions) of employers under voluntary contracts insurance (non-state pension agreements) concluded in favor of employees with insurance organizations (non-state pension funds) that have licenses issued in accordance with the legislation of the Russian Federation to conduct relevant types of activities in the Russian Federation.

In cases of voluntary insurance (non-state pension provision), the indicated amounts relate to labor costs under contracts:
life insurance, if such contracts are concluded for a period of at least five years with Russian insurance organizations that have licenses to conduct the relevant type of activity, and during these five years do not provide for insurance payments, including in the form of annuities and (or) annuities, for with the exception of insurance payments in cases of death and (or) injury to the health of the insured person;
non-state pension provision, subject to the application of a pension scheme that provides for accounting of pension contributions on the personal accounts of participants of non-state pension funds, and (or) voluntary pension insurance when the participant and (or) insured person has pension grounds provided for by the legislation of the Russian Federation, giving the right to establish pensions under state pension provision and (or) insurance pension, and during the period of validity of the pension grounds. At the same time, non-state pension insurance agreements must provide for the payment of pensions until the funds in the participant’s personal account are exhausted, but for at least five years, or for life, and voluntary pension insurance agreements must provide for the payment of pensions for life;
voluntary personal insurance of employees, concluded for a period of at least one year, providing for payment by insurers of medical expenses of insured employees;
voluntary personal insurance, providing payments exclusively in cases of death and (or) harm to the health of the insured person.
The total amount of employer contributions paid in accordance with the Federal Law "On additional insurance contributions for funded pensions and state support for the formation of pension savings", and payments (contributions) of employers paid under long-term life insurance contracts for employees, voluntary pension insurance and (or) non-state pension provision for employees is taken into account for tax purposes in an amount not exceeding 12 percent of the amount of labor costs.
In case of changes to the terms of a life insurance contract, as well as a voluntary pension insurance contract and (or) a non-state pension provision contract in relation to individual or all insured employees (participants), if as a result of such changes the terms of the contract cease to comply with the requirements of this paragraph, or in In the event of termination of these contracts in relation to individual or all insured employees (participants), employer contributions under such contracts in relation to the relevant employees, previously included in expenses, are recognized as subject to taxation from the date of making such changes to the terms of these contracts and (or) reducing the validity period of these contracts or their termination (except for cases of early termination of the contract due to force majeure circumstances, that is, emergency and unavoidable circumstances).
Contributions under voluntary personal insurance contracts providing for payment by insurers of medical expenses of insured employees, as well as expenses of employers under contracts for the provision of medical services concluded in favor of employees for a period of at least one year with medical organizations that have appropriate licenses to carry out medical activities issued in in accordance with the legislation of the Russian Federation, are included in expenses in an amount not exceeding 6 percent of the amount of labor costs.
Contributions under voluntary personal insurance contracts that provide for payments exclusively in cases of death and (or) harm to the health of the insured person are included in expenses in an amount not exceeding 15,000 rubles per year, calculated as the ratio of the total amount of contributions paid under these contracts, to the number of insured workers.
When calculating the maximum amounts of payments (contributions) calculated in accordance with this subparagraph, the amounts of payments (contributions) provided for by this subparagraph are not included in labor costs;

Individual entrepreneurs (fixed payment + additional percentage of the Pension Fund) also have the right to take into account their contributions as part of the professional deduction (letters from the Ministry of Finance dated October 31, 2016 No. 03-04-09/63484 and dated February 6, 2017 No. 03-15-07/6070).

Individual entrepreneurs on OSNO have the right to include all listed contributions in the professional deduction.

Unlike special regimes (USN and OSNO), on OSNO for individual entrepreneurs, tax is calculated using the accrual method in which the deduction does not occur on the date of payment, but the period for which the tax is paid is important.

PSN

The patent cannot be reduced by any contributions (letter of the Ministry of Finance dated February 18, 2013 No. 03-11-11/72). The Tax Code does not provide for a reduction in PSN.

From July 1, 2018, the use of online cash register will be mandatory. The cost of the patent can be reduced by the amount of the online cash register purchase. But there is a limitation - no more than 18,000 rubles will be returned for one cash register.

Combination of tax regimes

If you combine several tax regimes, you can also reduce taxes. When combining simplified taxation system + PSN, everything is simple. You simply reduce the simplified tax system and there is no PSN. But with the combination of simplified tax system + UTII it is more difficult. Workers should be divided into those on UTII and those on the simplified tax system. Their contributions too. The Tax Code does not stipulate how to make deductions for fixed contributions of individual entrepreneurs when combining the simplified tax system and UTII. Based on the Tax Code, Article 3, clause 7. “All irremovable doubts, contradictions and ambiguities in acts of legislation on taxes and fees are interpreted in favor of the taxpayer (payer of fees).” You can make deductions in any proportion, but the amount of the deduction should not exceed the amount of the payment to the Pension Fund.

What if I haven't reduced my tax?

Reducing taxes on insurance premiums is a taxpayer's right, but not an obligation.

It is up to you to decide whether to reduce the tax or not. If you have not reduced the tax, then within 3 years you can submit an amendment and return the excess amount upon application.

Insurance premiums are paid by all individual entrepreneurs and LLCs on a simplified basis. We will tell you how to calculate contributions, when and where they should be transferred, and how to reduce the tax on the amount of contributions.

What are insurance premiums

Sometimes beginning entrepreneurs confuse taxes and contributions. Let's clarify: a tax is a mandatory payment from business income in favor of the state or municipalities. And insurance premiums are contributions to the Pension, Social and Health Insurance Funds. The budgets of these funds are formed separately from the federal one - namely from contributions from policyholders, which is why the funds are called extra-budgetary. They provide support to citizens who have suffered an insured event: for example, the Pension Fund assigns a pension upon reaching retirement age, the Social Insurance Fund pays benefits upon pregnancy and the birth of a child.

Who pays insurance premiums

Individual entrepreneurs, lawyers, notaries transfer contributions for themselves in a clearly established amount. Every year, officials review the amount of these contributions. Individual entrepreneurs and organizations that are employers also pay insurance premiums for employees. If an individual entrepreneur transfers contributions as an employer-insurer, this does not exempt him from paying contributions for himself.

Amount of insurance premiums in 2019

In 2019, individual entrepreneurs on the simplified tax system pay 36,238 rubles in contributions. Of this, 29,354 rubles are paid for pension insurance. 6,884 rubles are transferred for medical insurance. Individual entrepreneurs do not have to make contributions to the Social Insurance Fund, but if an entrepreneur wants to obtain the right to social benefits (sick leave, maternity leave, child care), then he needs to transfer contributions to the Social Insurance Fund voluntarily.

Additionally, the individual entrepreneur must transfer to the Pension Fund 1% of those income for the year that exceed the income of 300,000 rubles. But no more than 205,748 rubles - such a contribution will have to be paid if the annual income exceeds 20.5 million rubles. Be careful when creating bills: payment if the income limit is exceeded is processed through a separate BCC.

For individual entrepreneurs and LLCs acting as insurers, the total amount of contributions to various funds is in most cases 30% of the employee’s salary. This amount is not deducted from the salary, like personal income tax, but is paid by the employer to funds from the enterprise’s funds. 22% of the salary amount is sent to the Pension Fund, 5.1% to the Federal Compulsory Medical Insurance Fund, and 2.9% to the Social Insurance Fund for compulsory social insurance.

There are also additional FSS tariffs for insurance against work-related injuries and occupational diseases. They are established for each policyholder depending on the type of activity. It is to clarify this tariff that employers annually submit a report on the main type of activity to the Social Insurance Fund. The tariff rate ranges from 0.2% to 8.5%.

When calculating contributions, you need to keep in mind salary limits. If the amount of salary calculated on an accrual basis during the year exceeds this limit, then contributions from the excess amount are either not paid at all or are paid at a reduced rate. Here are the limits for 2019:

• Pension Fund - 1,150,000 rubles. Contributions at a rate of 10% are paid on excess amounts.
• FSS - 865,000 rubles. There is no need to pay contributions for excess amounts.
• There is no limit for contributions to the FFOMS and for injuries; contributions must always be paid.

Until 2019, some individual entrepreneurs and LLCs on a simplified basis that fell under the benefit (for example, operating in the field of education, healthcare) had the opportunity to make contributions to the Pension Fund at a reduced rate - in the amount of 20% of the employee’s salary. As of this year, there are no more such benefits. Only NPOs on the simplified tax system with signs of social orientation and charitable enterprises on the simplified tax system will continue to charge and pay contributions at reduced rates - they pay only 20% to the Pension Fund.

Important: Check the fee rates for your type of activity in your region.

Where to send

Contributions for pension, health insurance and disability and maternity insurance for 2019 must be sent to the Federal Tax Service. Contributions for injuries are accepted by the Social Insurance Fund. Check the details of your tax and social insurance, as well as the KBK on regional official websites.

Deadlines for payment of insurance premiums

An individual entrepreneur must pay contributions for himself during the calendar year - one-time or in installments until December 31 or the next working day, for example, in 2019 - until January 9. Contributions from income exceeding 300,000 rubles must be calculated and transferred before July 1 of the next year.

Individual entrepreneurs and LLCs as insurers must pay employee contributions no later than 15 days after the end of the next month for which employees are paid.

How to reduce tax on contributions

At the simplified tax system of 15%, all contributions for employees or individual entrepreneurs for themselves fall into the “Expenses” column in the Accounting Book and reduce the tax base.

On the simplified tax system of 6% and UTII, the policyholder or individual entrepreneur without employees has the right to include insurance premiums in the tax deduction:

• An individual entrepreneur without employees can reduce the tax by the amount of all contributions paid, even if the tax is canceled.
• Individual entrepreneurs and LLCs with employees can also reduce the tax by the amount of insurance premiums paid, but not more than 50%.

Rule 1. The amount of the deduction depends on whether the entrepreneur made payments to individuals during the year:

• under employment contracts or
• under civil contracts (for example, for the provision of services).

In both cases, at least one payment to the employee is sufficient - and it will be considered that the individual entrepreneur was the employer in the reporting period (calendar year).

If there were payments to employees: the “simplified” tax is reduced by no more than half.

If there were no payments to individuals during the year: the tax is reduced by the entire amount of contributions paid - the 50% limit does not apply.

Rule 2. The advance payment (tax) calculated for the reporting period can be reduced by contributions paid in the same period. It doesn’t matter what period the contributions are calculated for.

That is, it matters:

• for what period calculated advance payment (tax), regardless of the date of actual payment;
• in what period did it pass transfer contributions, no matter what period they are calculated for.

For example, an advance payment for a “simplified” tax based on the results of the first half of 2018 can be reduced by insurance premiums that were paid during the period from 01/01/2018 to 06/30/2018, even if these are contributions to the Pension Fund for the last 2017.

Another example. The entrepreneur paid contributions to the Pension Fund for 2018 at the beginning of 2019. The “simplified” tax at the end of 2018 cannot be reduced by this amount, but can be taken as a deduction when paying an advance payment for the simplified tax for 2019.

How to reduce the tax on individual entrepreneur contributions on the simplified tax system without employees

What contributions can be used to reduce the single tax under the simplified tax system?- composition of the deduction:

• insurance contributions to the pension fund and health insurance fund paid by the entrepreneur for himself, in the established minimum amount;
• insurance contributions to the pension fund paid by the entrepreneur for himself in the amount of 1% of the amount of income exceeding 300,000 rubles in the reporting year.

Individual entrepreneurs' contributions for voluntary personal insurance do not reduce the simplified tax system.

Deduction amount:

• in the amount of contributions actually paid in the reporting period

The advance payment or tax may ultimately amount to zero payable. There are no restrictions, but if contributions exceed the tax amount, there will be no reimbursement from the budget, and such “savings” will also not be carried over to the next year.

Thus, the amount of the “simplified” tax payment for 3, 6, 9 months and a year takes into account what the individual entrepreneur has already managed to transfer to the Federal Tax Service.

Formula for calculating advance payment (tax) according to the simplified tax system*

*This calculation only takes into account deductions for insurance premiums, if the entrepreneur is also a payer of the trade tax (introduced in a number of regions), it is also possible to apply a deduction for the trade tax.

An entrepreneur using the simplified tax system with the object of taxation “income” (6% rate), without employees, received income in the amount of:

Q1 2018 – RUB 300,000.

Q2 2018 – RUB 500,000.

III quarter 2018 – RUB 700,000.

IV quarter 2018 – RUB 200,000.

The cumulative total of the entrepreneur’s income was: in the first quarter - 300,000 rubles, for the first half of the year - 800,000 rubles, for 9 months - 1,500,000 rubles, for 2018 - 1,700,000 rubles.

The entrepreneur pays contributions in the amount of 32,385 rubles. in equal parts quarterly.

During the period from 01/01/2018 to 03/31/2018, insurance premiums were paid in the amount of 8,096.25 rubles. (32,385 rubles / 4 = 8,096.25 rubles).

The advance payment for the “simplified” tax for the first quarter will be:

RUB 9,903.75 = 300,000 rub. x 6% – 8,096.25 rub.

In the second quarter, the entrepreneur also paid premiums in the amount of 8,096.25 rubles, thus, in the period from 01/01/2018 to 06/30/2018, insurance premiums were paid in the amount of 16,192.50 rubles.

The advance payment for the “simplified tax” for the six months will be:

RUB 21,903.75 = 800,000 rub. x 6% – 9,903.75 rub. – 16,192.50 rub.

In the third quarter, the entrepreneur made another payment of contributions in the amount of 8,096.25 rubles. In addition, since the entrepreneur’s income for the six months exceeded 300,000 rubles, the individual entrepreneur decided to pay insurance premiums to the Pension Fund in the third quarter in the amount of 1% of 500,000 rubles. (RUB 800,000 – RUB 300,000). In total, during the period from 01/01/2018 to 09/30/2018, insurance premiums were paid in the amount of RUB 29,288.75. (8,096.25 x 3 + 500,000.00 x 1%)

The advance payment for “simplified tax” for 9 months will be:

RUB 28,903.75 = 1,500,000 rub. x 6% – 21,903.75 rub. – RUB 9,903.75 – RUB 29,288.75

In the fourth quarter, the entrepreneur paid 7,000 rubles to the Pension Fund. (1% of 700,000 rubles), as well as 8,096.25 rubles. – the last part of contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund from the amount of 32,385 rubles payable during 2018.

In total, for the period from 01/01/2018 to 12/31/2018, insurance premiums were paid in the amount of 44,385 rubles.

At the end of the year, the tax amount will be calculated to be reduced in the amount of 3,096.25 rubles, since the calculated tax, reduced by the amount of contributions paid during the year, is less than the amount of previously transferred advance payments:

RUB 1,700,000 x 6% - 44,385 rub.< 9 903,75 руб. + 21 903,75 руб. + 28 903,75 руб.

In January 2019, the individual entrepreneur paid 2,000 rubles to the Pension Fund. – the balance of contributions in the amount of 1% of the amount of income exceeding 300,000 rubles. in 2018. By this amount, the entrepreneur will be able to reduce advance payments for the “simplified” tax for 2019.

How to reduce the tax of individual entrepreneurs on the simplified tax system with employees

What contributions and payments can be used to reduce tax?- composition of the deduction:

• mandatory insurance premiums paid by the entrepreneur for himself;
• mandatory insurance contributions for employees;
• sick leave for the first three days, paid at the expense of the employer;
• contributions under voluntary insurance contracts in favor of employees in the event of their temporary disability.

An entrepreneur who has employees and/or pays remuneration to individuals has the right to reduce the amount of the calculated “simplified” tax (advance payments) by the costs of paying:

• mandatory insurance premiums paid for your insurance. These include:
  • payments in the minimum fixed amount to the Pension Fund (pension insurance) and the Federal Compulsory Medical Insurance Fund (compulsory health insurance);
  • payments to the Russian Federation in the amount of 1%, paid on income exceeding 300,000 rubles.

It is not worth relying on the Letter of the Ministry of Finance (No. 03-11-09/57011 dated October 6, 2015) stating that 1% contributions to the Pension Fund cannot be included in the deduction; it was withdrawn (for more details, see the information above, in the section for individual entrepreneurs without workers).

• insurance premiums from payments to its employees and/or other individuals (for example, under contracts for the provision of services, etc.). Such payments include insurance premiums:
  • for compulsory pension insurance;
  • for compulsory social insurance in case of temporary disability and in connection with maternity;
  • for compulsory health insurance;
  • for compulsory social insurance against accidents at work and occupational diseases (contributions in case of injury);
  • temporary disability benefits;

The entrepreneur, at his own expense, pays temporary disability benefits for the first three days of incapacity for work - these amounts are deducted provided that they are not covered by insurance payments under voluntary insurance contracts (VHI). In this case, the benefit should not be related to industrial accidents and occupational diseases.

To justify the deduction, the entrepreneur must have supporting documents: a certificate of temporary incapacity for work of the employee and a document confirming that the employee received payment (for example, an expense cash order).

The amount of deduction in the form of sick leave is not reduced by the amount of personal income tax calculated from the benefit. If an entrepreneur pays an additional amount to sick leave benefits up to the employee’s actual average earnings, these costs are not deducted under the “simplified” tax.

An employer may conclude a voluntary health insurance agreement for the benefit of employees. Such an agreement may provide that when an employee goes on sick leave, an insurance payment is paid. In this case, the deduction does not include the costs of paying for sick leave (in fact, there will be none), but payments under the contract (see the next paragraph).

• payments (contributions) under voluntary personal insurance contracts in favor of employees in the event of their temporary disability (except for industrial accidents and occupational diseases).

To receive a deduction for these payments, the contract must stipulate, among other conditions, that the amount of the insurance payment to the employee does not exceed the legally established amount of temporary disability benefits and is paid only for the first three days of incapacity.

How much can a “simplified” tax be reduced?- amount of deduction:

• in the amount of amounts actually paid in the reporting period related to deductions, but not more than 50% of the tax (advance payment).

That is, advance payments and taxes can be reduced by individual entrepreneurs by no more than half. Consequently, if the total amount of the above payments (deductions) amounts to more than half of the calculated advance payment (tax), then the advance payment (tax) payable can only be reduced by 50%.

Formula for calculating advance payment (tax) according to the simplified tax system for an individual entrepreneur*

in this case, the advance payment (tax) cannot be less than:

Minimum payment (tax)*

*If the entrepreneur is a payer of the trade tax (introduced in a number of regions), it is also possible to apply a deduction for the trade tax, but it is not subject to the 50% limit.

Nuances of reducing the “simplified” tax

para. 5 clause 3.1 art. 346.21 (Individual employers can reduce the tax by no more than half)

para. 5 and 6 clause 3.1 art. 346.21 Tax Code of the Russian Federation, clause 3.1 art. 346.21 of the Tax Code of the Russian Federation (individual entrepreneurs without employees reduces the tax without a limit of 50%), Letters of the Ministry of Finance of Russia dated 09/01/2014 N 03-11-09/43646, dated 05/26/2014 N 03-11-11/24975, dated 04/07/2014 N 03-11-11/15344

pp. 1 clause 3.1 art. 346.21 of the Tax Code of the Russian Federation (individual employers include contributions for themselves in deductions)

pp. 2 clause 3.1 art. 346.21 of the Tax Code of the Russian Federation (reduction of tax on the amount of temporary disability benefits), Letters of the Ministry of Finance of Russia dated 04/11/2013 N 03-11-06/2/12039, dated October 20, 2006 No. 03-11-04/2/216

Art. 7 of the Law of December 29, 2006 No. 255-FZ (employer’s additional payment up to average earnings during sick leave is not a benefit (hence, is not included in the deduction under the simplified tax system))

pp. 3 clause 3.1 art. 346.21 Tax Code of the Russian Federation (reduction of tax on payments under insurance contracts)

Letters of the Ministry of Finance of Russia dated 01.09.2006 N 03-11-04/2/181, Federal Tax Service of Russia for Moscow dated 20.01.2009 N 19-11/003082 (supporting documents for reducing tax on the amount of temporary disability benefits)