Russian tax legislation establishes a large number of schemes under which enterprises can fulfill their obligations to the state budget. Among those - a single tax on imputed income, or UTII. Many businesses prefer to work under it, and not under any other - because of the unique opportunity to pay a fixed amount to the budget, regardless of the amount of revenue. But there are a number of nuances of UTII, predetermining its attractiveness for Russian business. What are they? How can an enterprise switch to UTII?
Differences UTII from other taxes
The unified tax on imputed income provided for by Russian law is classified as federal, but is also regulated with the participation of municipal structures. Its main feature is the need to transfer to the budget contributions of a fixed amount, without any correlation with the actual revenue of the organization. This feature of UTII allows many businesses to significantly reduce the payment burden.
Only companies that operate in those areas that are defined by law as compatible with the relevant tax can work under the UTII. Among those segments are:
- services in repair, maintenance, washing of vehicles;
- lease of land, as well as places for trade.
However, restrictions on the type of entrepreneurial activities is not the only criterion that determines the ability to work on UTII. Consider other requirements for a business applying for UTII activities as provided for by the legislation of the Russian Federation.
Working conditions for UTII
The transition to a single tax on imputed income for an entrepreneur is possible if:
- the company employs no more than 100 people,
- the share of other organizations in the authorized capital of the company does not exceed 25%,
- the entrepreneur is not registered as an IP on the patent system of taxation (as a subject of the same segment of activity that falls under the UTII),
- the businessman is not the owner of the catering service that works with educational, medical or social institutions,
- The entrepreneur does not conduct work on the transfer to the temporary possession of the gas station.
Let us now consider how the company can move to UTII.
The procedure for the transition to UTII
A single tax on imputed income, the entrepreneur can begin to pay immediately after the occupation of activities falling under the appropriate taxation scheme. Until 2013, firms had to work on UTII in any case, if the type of their commercial activities suited this tax, but now businesses can apply the appropriate scheme of settlement with the state voluntarily.
However, if the type of activity falling under the UTII becomes permanent for the firm, it is recommended to notify the FTS about this. As soon as an entrepreneur terminates a business that presupposes the appropriate type of commercial activities, it is possible not to pay UTII. It is also recommended that a notice be sent to the FTS that activities that fall under a single tax on imputed income are no longer conducted by the company.
Criteria for the transition to UTII
As we noted above, the transfer of business to UTII is possible only if activities that are compatible with this tax system are assumed. At the same time, the relevant types of activities should be taken at the level of municipal sources of law. A situation may arise in which, in order to start a UTII business, it is enough to bring into conformity with the necessary criteria only certain areas of the production infrastructure.
For example, if an entrepreneur is engaged in the hotel business, then it may be sufficient to reduce the living space of the sleeping rooms in one object to less than 500 sq. M. As soon as the hotel meets this criterion, it is possible to work on the UTII by notifying the FTS of the commencement of activities, subject to the application of the tax system in question. But as soon as the hotel is reconstructed and its area exceeds 500 square meters. m, the entrepreneur loses the right to work on a single tax on imputed income.
UTII, like the other taxation system, involves the reporting of the enterprise to the FTS, as well as, of course, timely settlements with the state. The specificity of UTII is that it must be paid in relation to the actual place of commercial activities. The declaration is also submitted to the FTS in correlation with the geography of the activity. If the entrepreneur is not registered with the Federal Tax Service as a payer of the single tax on imputed income, this procedure must be carried out within 5 days from the start of commercial activities. The same is recommended if the firm operates at the place of registration, as we noted above. Within 5 working days the FTS should carry out the necessary procedures for registering the company as a payer of UTII.
The main forms of reporting on UTII
Accounting statements are a type of liability that is established only for taxpayers with the status of legal entities. PIs should not provide relevant sources to the FTS. The main forms of financial statements for UTII are as follows:
- the balance sheet, as well as the necessary explanations to it;
- reports: on profits and losses, on changes in capital, on movements of funds, on the targeted use of funds;
- explanations for the report containing information about the profits and losses;
- an audit report for firms that are required to form the relevant documents.
In some cases, it is possible to provide simplified reporting forms. In particular, this possibility can be used by small enterprises. Simplified reporting forms require less work on the calculation of these or other indicators by accountants. Reporting forms for UTII are fixed in the Orders of the Ministry of Finance of the Russian Federation.
Consider how the single tax on imputed income is calculated. As in the case of other tax systems, the numbers that the entrepreneur must pay to the treasury are formed on the basis of the tax base and the rate. The first component in the case of a company operating on UTII is calculated using a rather complex formula.
In order to determine the base for a single tax, you need to multiply: the figures for the basic yield, physical indicator, the deflator coefficient, which is determined at the level of federal legislation, the additional coefficient K2, which is recorded in sources of law at the level of subjects of the Russian Federation.
The single tax rate determined by the Tax Code of the Russian Federation is 15%. The tax period for UTII - quarter is also legislatively fixed. Consider these components of the "formula" calculus UTII more.
Base profit and physical indicator
The basic profitability is a conditional indicator that correlates with the company's estimated revenue in terms of value per a unit of physical indicator that is related to one or another type of commercial activities. It can vary greatly depending on the specific type of activity of the company. The physical indicator reflects the number of objects of commercial activities that form the tax base.
In the "formula" for calculating UTII, 2 coefficients are applied. The first, called K1, is determined by multiplying the other two coefficients - established in the previous period, as well as fixed in the previous calendar year. The corresponding values are set in the sources of law at the federal level. The coefficient, called K2, is directly related to the base rate of return. It is calculated taking into account the specifics of entrepreneurial activities in the aspect of the range of goods or services, seasonality, features of the company’s work schedule, incomes, geographical characteristics of the services provided, etc.
If an entrepreneur conducts activities within several segments that fall under the UTII, then a single tax should be calculated for each business line. It should be noted a number of nuances associated with the reporting when paying the tax under consideration for various types of activities. First, a single tax declaration in this case may contain several Sections 2. Secondly, if a firm works in different municipalities, then the imputed income tax should be calculated and paid for individual OKTMOs. In fact, the company must pay certain types of single tax in correlation with specific types of commercial activities.
Mutual consideration of UTII and other fees
The calculation of UTII can be subject to the mutual consideration of a single tax on imputed income and other payments that the entrepreneur needs to transfer to the budget. So, UTII can be reduced by the amount of contributions paid by the business to the Pension Fund of Russia, the Social Insurance Fund, as well as the sick-list paid to employees. However, the offset of relevant payments and UTII implies some restrictions:
- you can take into account only the amounts that are paid to the budget by the time the declaration is sent to the FTS;
- only those hospital payments that are made by the organization itself, and not the Social Insurance Fund are taken into account;
- reduction of UTII due to contributions to state funds is possible only by 50%.
The procedure for paying a single tax
Entrepreneurs must pay a single tax before the 25th of the month that follows the reporting period. The amount of UTII calculated for payment to the budget should be directed to treasury accounts, and subsequently distributed to budgets in accordance with the provisions of the law.
What taxes are not paid when UTII
It can be noted that UTII is a taxation system, which involves the release of an entrepreneur from paying those fees that are provided for by a DOS - a business and state settlement scheme implemented by default or in the case of a conscious choice of a business owner. An entrepreneur, paying a single tax on imputed income to the treasury, may not transfer to the state:
- income tax;
- property tax;
- VAT (not counting customs duties, as well as payments that tax agents are required to transfer to the budget).
An important point: if a firm pays not only a single tax, activities that are not covered by UTII are subject to taxation in the manner prescribed by law specifically for these activities. If they involve the transfer to the budget of marked fees, the entrepreneur must fulfill the corresponding obligations.
Taxes supplementing UTII
The legislation of the Russian Federation provides for a number of fees that can complement UTII. Among those - transport, land, as well as a tax on gambling. Actually, there is no correlation between the UTII and these fees, their companies must pay regardless of the specific taxation system in which they operate.
Features of accounting in UTII
For business societies, the need to maintain accounting records at UTII is established by law. Note that a single tax for individual entrepreneurs does not imply such obligations. In some cases, UTII can be the subject of internal reporting. In this case, the main point that needs to be considered are physical indicators. According to experts in the field of taxation, the law does not regulate in any way how the figures should be recorded in the internal accounting for UTII. It is noteworthy that the relevant documents may be required not so much by the FTS. It will be enough for this agency to receive standardized forms of financial statements, which is not the case with other state inspectors.
Certain nuances characterize the activity while using UTII and other tax systems. This scenario assumes, first of all, a separate accounting of income and expenses for each type of commercial activities. As a rule, the delimitation of revenue does not cause any particular difficulties for entrepreneurs. Another thing, if you share the costs. The fact is that in some cases they are problematic to be attributed to those that should be taken into account when calculating UTII, DOS or STS, if the company uses a single tax in the STS. Businesses are encouraged to follow the provisions of article 274 of the Tax Code, that is, allocate costs in proportion to the revenue from various types of commercial activities. If a firm earns more in some activities, then the expenses in this part should be higher than in other segments.
Another possible difficulty of accounting while applying UTII and other taxation schemes at the same time is that for each method of business calculation with the state different reporting periods can be established by law. In the provisions of the Tax Code of the Russian Federation there is no specification on the issues that relate to the delimitation of the same expenses if the reporting periods for different types of activities do not coincide. It is recommended in such scenarios to seek advice from specific territorial structures of the Federal Tax Service to which tax reporting is intended.
The single tax for individual entrepreneurs or for business entities is especially attractive because it is possible to reduce the payment burden on the business. At the same time, the very fact of the company's work on UTII is not the only way to save on taxes. Practical use of calculations in the framework of a single tax can be carried out in different ways. Consider this aspect in more detail.
Ways to reduce UTII
Thus, the main component of the “formula” for calculating UTII, affecting the actual value of the corresponding tax, is a physical indicator. For example, it is known that UTII can be paid based on the floor space. Therefore, an entrepreneur can optimize the relevant criterion by reducing the area of the premises used in the business, if the specificity of commercial activities allows.
There is another way to reduce the tax burden in UTII - by reducing the coefficient K2. A very common method for this is the transfer of the enterprise’s work schedule to a 6-day schedule. In this case, the firm will work about 27 days per month. Therefore, the tax base when using the coefficient K2 can be reduced relative to the ratio of 27 to 31 - the number of days in a full month. However, in this case, it is recommended to form some kind of evidence base in support of the corresponding schedule. These may be KKM documents, time sheets, etc. Experts recommend placing emphasis on the second type sources, as they may reflect the schedule of visits to the company by employees.
The main advantages of UTII
So, we explore the key advantages that characterize UTII.
First of all, a single, simplified tax (in comparison with DOS) allows businesses to significantly reduce the payment burden by paying fixed payments to the state. Legally, there are no restrictions on the amount of revenue for businesses operating on UTII. Payment of a single tax on imputed income exempts taxpayers from transferring many other fees to the budget. In the case of UTII, it is intended to build fairly simple schemes of interaction between business and the FTS, primarily in the aspect of reporting. If the firm functions as an IP property object, then in this case all that needs to be submitted to the FTS is a UTII declaration.