The Ministry of Economy of the Republic of Tatarstan told how entrepreneurs-payers of UTII to choose the optimal tax regime

According to amendments to the Tax Code of the Russian Federation and articles of Federal legislation, the taxation system in the form of a unified tax on imputed income for certain types of activities should completely cease to operate in Russia, starting from January 1, 2021. According to the Federal Tax Service, there are more than 50 thousand UTII payers in Tatarstan.

Throughout the current year in the republic, as well as throughout the country, active work is being carried out to organize a “smooth transition” of legal entities and individual entrepreneurs from UTII to other special tax regimes. In Tatarstan, legal entities can apply the general or simplified taxation system (STS), individual entrepreneurs, in turn, in addition to the above regimes, can choose the patent taxation system (PTS), as well as the professional income tax (PIT), but only in if the individual entrepreneur does not have employees. Agricultural producers, regardless of their form of ownership, are entitled to apply the unified agricultural tax (UAT).

To select the optimal tax regime on the website of the Federal Tax Service of Russia, there are services that allow you to select the tax regime for each individual business entity: “Tax calculator - Selecting the tax regime” and “Which regime suits my business?”

After choosing the appropriate tax regime, you must submit a notification or application for the transfer to the tax authority:

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

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

- when passing 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);

- when passing to a PIT, it is necessary to register through the My Tax mobile application or the My Tax web account by the end of the year, while within a month after registering as a PIT, the taxpayer must send a notification to the tax authority about termination of the UTII application.

It should be noted that those entrepreneurs who do not make a choice until the end of 2020 will automatically switch to the general tax regime.

For the convenience of entrepreneurs, 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”, as well as via telecommunication channels, by mail with a list of investments or by personally contacting the tax office.

A number of amendments have been made to legislative acts designed to reduce the tax burden on entrepreneurs. Thus, on July 31 of this year, Federal Law No. 266-FZ was adopted, according to which a “transitional” tax regime is established for taxpayers who have lost the right to use the simplified taxation system. This regime can be used if the volume of revenue crosses the threshold of 150 million rubles, but at the same time does not exceed 200 million rubles, and the number of employees will be, respectively, from 100 to 130 people. In this case, from the quarter in which such increases occurred, the taxpayer will have to pay tax at increased rates of 8% for the object “income”, 20% for “income minus expenses”. Regular rates will be applied to the tax base calculated for the reporting period of the quarter in which the excess occurred.

Also, the State Duma of the Russian Federation is considering a draft Federal Law (No. 973160-7 “On Amendments to Articles 346.43 and 346.51 of Part Two of the Tax Code of the Russian Federation”), which provides for:

- granting to entrepreneurs applying the patent taxation system the right to reduce the amount of tax on insurance payments (contributions) and benefits. Now the tax is not reduced;

- an increase in the area used for the purpose of doing business at the PTS, objects of a stationary trading network with trading floors up to 150 square meters for each trade organization object and for the area of ​​public catering facilities. Currently - up to 50 sq. m inclusive;

- expansion and alignment of the types of entrepreneurial activities in respect of which PTS can be applied, in accordance with OKVED. Currently -  only the name of the spheres of activity without reference to OKVED.

These changes in tax legislation are especially relevant against the background of the abolition of UTII.

The Federal Tax Service Administration, which is part of the Working Group on implementation of the Action Plan to ensure sustainable development of the economy of the Republic of Tatarstan, within the framework of the meeting this week instructed all territorial divisions to provide information on taxpayers of UTII for their timely information and support in choosing a different tax regime in every municipal region of the republic. The meeting was attended by representatives of the executive authorities of the Republic of Tatarstan, the National Bank, the Chamber of Commerce and Industry, the Association of Enterprises and Industrialists of the Republic of Tatarstan, UFAS.

The Federal Tax Service Administration also conducts webinars aimed at informing and orienting the business community of Tatarstan on application of the optimal tax regime.

On the website of the Ministry of Economy of the Republic of Tatarstan, you can find detailed methodological recommendations for choosing a future tax system.