Methodical recommendations will help entrepreneurs applying UTII to choose the optimal tax regime

Taxpayers currently applying UTII have the right to switch to other tax payment regimes. So, legal entities can apply the general taxation system or the simplified taxation system (STS).

Individual entrepreneurs, in addition to the above regimes, can choose the patent taxation system (PSN). Organizations and individual entrepreneurs that are agricultural producers are entitled to apply the unified agricultural tax (UAT).

To select the optimal tax regime, the website of the Federal Tax Service of Russia offers to use the services: “Tax Calculator - Selection of Taxation Regime” and “Which regime suits my business?”, as well as methodological recommendations.

To switch to other special tax regimes from January 1, 2021, the following documents must be submitted:

- when switching to the simplified tax system - notification in the form No. 26.2-1 no later than December 31, 2020 (in this case, by the end of 2020, the taxpayer will apply UTII);

- when switching to PSN - an application for a patent in the form No. 26.5-1 no later than 10 days before the application of PSN;

- when switching to the Unified agricultural tax - a notification in the form No. 26.1-1 no later than December 31, 2020 (while by the end of 2020 the taxpayer will apply UTII).

Entrepreneurs who have not switched to another special tax regime within the timeframe established for this will be required to apply the general tax regime from January 1, 2021.

A notification on application of the selected taxation regime can be submitted through the “Personal account of an individual entrepreneur”, “Personal account of a legal entity”, via telecommunication channels, by mail with a list of investments or in person when visiting the tax office.