It is unlikely that any entrepreneur will want to pay penalties because of non-compliance with recommendations on the application of a particular tax system. Therefore, today the calculation of the correct fiscal burden is one of the key processes of the operating activity of the business representative. What this is and what its role in the system of obligations, we will discuss in the article below.
Concept and types of tax burden
Each business entity in the conduct of its operating activities should give a full account of the results of its own functioning. Therefore, often calculated the tax burden of the enterprise, which provides a comprehensive description of the fiscal policy of the representative of the business. According to the results of the calculation, which will determine the total weight of the burden, even the business entity itself will be able to determine how much its activity will raise suspicions among the authorized bodies.
Among other things, due to the correct calculation of the tax burden, it is possible to predict the level of fiscal oppression of future periods. As for their classification, it does not exist as such, so the burden can only be ranked according to taxation groups, which we will talk about a little later.
Therefore, we understand that the fiscal burden is the definition of the coefficient of liabilities to the state with respect to funds, net profit and other assets of the business entity.
Methods for determining the tax burden
In order to determine the level of the tax burden, there are several approaches. So, for example, the nation-wide method, which is overseen by the Ministry of Finance of the Russian Federation, consists of the following features:
- the level of tax oppression is determined by the ratio of the share of obligations paid to the treasury to the revenue;
- while the latter includes also other income, which is calculated as a percentage.
Here, for example, some financial experts are of the opinion that the fiscal burden should be calculated relative to only one tax – on value added. Because it holds a key position in pricing, and in operations in General.
And perhaps the most interesting way the tax burden is calculated based on the source of payment of the obligation. This method implies the distribution of the fiscal burden by the classes of occurrence and the corresponding calculation of the specific gravity of each of them in the operating activity of the enterprise.
Classification of fiscal liabilities
It is easy to guess that the tax burden directly depends on the fiscal obligations of the business entity. Therefore, it is extremely important to understand the essence and role of each of them. So, for example, the tax burden on types of activities, according to the methods of reimbursement, is:
- indirect (it is superimposed on the cost price of the goods, therefore it is peculiar only to trading operations);
- direct (is calculated from the general level of income of the business entity, and therefore inherent in all).
For the total amount of fiscal burden, the liabilities are:
- progressive (grow faster than revenue);
- regressive (a lower rate of profit is characterized by a higher rate, and vice versa);
- proportional (characterized by a single tax ratio).
The mechanism of taxation of business entities
The order of charging and the level of tax burden regulated by the current legislation, namely the Tax code of the Russian Federation and other normative legal acts on the implementation of fiscal policy.
Our state system is multilevel, therefore it is carried out on three levels: at the federal, regional and local levels.
The first level consists in imposing the burden of VAT, excise duties, income and personal income tax, a single social contribution, state duty and collection from the right of inheritance, use of water resources and minerals.
Regional taxation extends to gambling, transport services and property use by legal entities.
Well, local fiscal fees as the smallest category are in property fees from individuals and land.
Traditional fiscal system
Perhaps the most frequently used business entities. Therefore, there must be, and was the traditional system where the tax burden on profits as its base takes the total volume of sales and non-operating income.
Similarly, as a nominal expense, a combination of both operational and extraordinary costs is adopted. At the same time, labor costs (salaries of employees), depreciation and material (direct purchase of raw materials and semi-finished products) are included in production expenses.
The peculiarity of imposing fiscal obligations on property in the traditional system consists in adopting the annual average book value of a non-negotiable asset as a tax base.
The VAT rate is 18%, the tax burden on profits is 20%. As the base of the latter, the gross aggregate income is taken, as discussed above.
Simplified system of taxation
Simplified, as it is customarily called in the circles of taxpayers, has been operating in the territory of the Russian Federation for two decades, and during this time it has been repeatedly subjected to changes and innovations.
The application of this system is the only way of existence of business entities that relate to representatives of small and medium-sized businesses. As it significantly reduces the level of tax burden for a certain group of entrepreneurs, which gives them the opportunity to receive a stable profit, and not to give all revenues to the treasury of the state as obligations.
The rates in the simplified system are only two: one for those business entities that use the difference between profit and expenses as a tax base, and it is 6%; and the second imposes a gross income of 15%.
Imputed fiscal system
Also, a fairly low tax burden is applied in the imputed fiscal system. It differs from the previous one in that it is mandatory for a certain list of activities specified in the current RF Tax Code.
As a basis for calculating fiscal liabilities, the so-called imputed income is taken, which consists in the potential profit of the business entity minus the available operating costs.
For a single rate it is accepted to take a tax of 15%. However, there is one characteristic feature in calculating the fiscal burden: the base is to be multiplied by the coefficients of profitability, which differ depending on the specifics of the conduct of a particular business. However, this indicator can vary monthly.
Features of tax planning
Since to date, a well-calculated tax burden underlies a successful and prosperous business, then it is worth paying proper attention to planning it within the framework of fiscal policy.
For several decades now, successful business entities have been practicing the medium-term budgeting of obligations to the treasury within the next financial year. Its features are that this process increases the overall efficiency of the enterprise. After all, you will agree, is it possible to call a business ineffective if the fiscal state bodies are completely satisfied with its reporting? Because it has no violations, it is made up by competent experts, and rates, and politics - that's right, do not carp.
As for the multi-year tax planning, it is rather informational in nature, since in any year it can change - either together with the reforms of domestic policy, or because of changes in the current legislation.