Tax holidays in 2017

In 2015, the Russian legislation introduced the concept of tax holidays, which give the right to individual entrepreneurs (registered for the first time) not to pay taxes. For PIs, a 0% rate is set for certain activities.

Conditions for tax holidays for IP

Tax holidays will operate in the subjects of the Russian Federation in the period from 2015 to 2020 and can be applied on such terms:

1. Only individuals who have registered for the first time can benefit from the benefits. Tax holidays do not apply to operating IPs. Even if an individual entrepreneur has withdrawn from the register and is registered again as an IP, he is not covered by the law on tax holidays.

2. Applicants may apply the preferential rate, which for two years (from the moment of state registration) was transferred to the PSN or USN. For other tax regimes, the benefit does not apply.

3. The right to apply the benefit (0% rate) is valid only for the first two years of the IP activity.

4. Tax holidays for IP in 2017 apply only to those entrepreneurs who operate in the following areas:

• social;

• Scientific;

• Production.

At the same time, the share of IP income in the above types of activities can not be less than 70% of the entrepreneur's total income.

5. The authorities of the subjects of the Russian Federation may impose additional restrictions at their own discretion (this may be limiting the marginal revenue from the sale of goods, services or products, or limiting the average number of employees).

Tax holidays for persons using PSN

It should be borne in mind that SPNs can be used by self-employed citizens. Thus, an individual who does not have hired employees has the right to apply SPE without registering with the tax inspection as an individual entrepreneur.

This category of taxpayers can count on obtaining a patent for conducting business in a simplified manner.

For all persons working for the SPE, the deadline for paying the tax was increased. That is, if the patent is received for a period of:

• up to 6 months - full payment of the tax must be made no later than the expiry of the patent;

• from 6 to 12 months - payment is due 1/3 of the amount of tax 90 days after the commencement of the patent. The remaining 2/3 of the tax amount will need to be paid no later than the expiration of the patent (not later than 30 days before the expiry of the patent).

Tax holidays for small businesses in 2017

In accordance with the decree No. 98-r of January 27, 2015, the following measures are envisaged to support small and medium-sized businesses in 2017:

1. For IP on USN: granting the right to local authorities of RF subjects to lower the tax rate from 6% to 1% (for IP with the object of taxation "income").

2. For PIs on the SPN:

• the list of permitted activities has been expanded;

• granting the right to the subjects of the Russian Federation to reduce the maximum amount of potential income for the year for IP (from 1 million rubles to 500,000 rubles).

3. For PI on UTII: granting the right to local authorities of RF subjects to lower the tax rate from 15% to 7.5%.

4. Increase in the marginal revenue from the sale of goods and services for the classification of businesses as a small and medium-sized business in 2 times:

• for micro-enterprises - from 60 to 12 million rubles;

• for small businesses - from 400 to 800 million rubles;

• for medium-sized enterprises - from 1 to 2 billion rubles.

Registration of benefits on tax holidays for FE in 2017

In order to formalize benefits, you must perform the following actions:

1. After registration of the IP in 2017, apply for transition to the Simplified Taxation System within one month.

2. During the tax holidays period, it is necessary to file accounts with a tax rate of 0%.

3. If a patent is purchased, you must indicate its zero value in the reports.

The application of benefits in accordance with the tax holidays does not exempt individual entrepreneurs from making fixed contributions for themselves and for employees in the FIU, the FSS and the MHIF and the payment of personal income tax.