The general taxation system can be applied by various business entities. In addition to this form of activity, there is still a simplified, but not all payers can apply it.
What tax system to choose
When registering a payer - a legal entity, if they have not submitted a special application regarding the transition to any other tax system, the general system is applied.
Foreign enterprises doing business in Russia can use only the general system in taxation.
Common system structure
The tax system in question consists of local, regional and federal taxes.So, local taxes are introduced by the relevant decisions of local authorities. Federal - are applied throughout the territory of the Russian Federation, regional - only where the relevant legislative body adopted such a law on their application.
The general system of taxation implies an independent determination by the payer with the subsequent payment of taxes to the budget, which will be discussed in more detail later.
The natural desire of any enterprise is the desire to pay the least possible amount of taxes. This goal can be achieved only with proper tax planning, the principles of which are quite simple:
- the use of acceptable legal ways to reduce the amount of taxes;
- payment to the budgets of the minimum amount of taxes (including all available overpayments) on the last day of the period established by the relevant legislation.
Value Added Tax
VAT, in which the object of taxation are those operations that are associated with the sale of goods, as well as the implementation of various construction works for personal use and the importation of goods into the territory of the Russian Federation, is calculated at several rates: 0%, 10% and 18%. Information on when and in what percentage expression this tax is applied can be found in any subject literature.
Corporate Profit Tax
The object is taken as a profit, which is received by the payer as a result of the implementation of its activities. The rate of this tax is 20%; quarter, half-year, etc. is taken as the reporting period. A feature of this tax is the monthly payment of advances calculated on the basis of the actual profit of the previous year.
There are some exceptions. Thus, enterprises that use a simplified taxation system, as well as business entities assigned to small businesses, are exempt from paying this tax.
Also for the first two years, small enterprises that process and produce food, agricultural products, building materials, as well as consumer goods and medical equipment are exempted from paying this tax. Over the next two years, the tax rate is reduced for enterprises of this type. However, this benefit can be used if the following condition is met - the revenue from these types of activities is not less than 70% and 90% of the revenue in the enterprise as a whole.
The third and fourth year of their work, enterprises pay a tax of 25 and 50% of the approved income tax rate. However, in this case, the same condition remains (the revenue from these types of activities must be from 90% of the total revenue for the enterprise).
Corporate Property Tax
The general taxation system cannot exist without property tax. In this case, the object of calculation of this payment is the presence of a different type of property, which is on the balance sheet as the main means. The tax base is the average annual value of such property.The rate of this payment is approved by the Tax Code of the Russian Federation - 2.2%. The tax period is the calendar year, and the reporting period is a quarter, half year and nine months.
Enterprises engaged in activities that use this type of accounting, such as the general taxation system, reports are submitted in such a set: balance, tax calculation for advance payments, as well as a tax declaration.
If the payers do not carry out business activities, reporting is still submitted to the territorial tax authorities, but only in a simplified form.
In addition to these taxes, there are also payments to extra-budgetary funds such as a social insurance fund, a pension fund, and salary contributions.
The general system of taxation provides for the maintenance of tax and accounting in full. This, firstly, from the management of the enterprise will require the availability of special knowledge and practice. The second important condition for the application of this system is the presence in the state of an accountant who will be responsible for maintaining such reports in accordance with established tax legislation.
This tax system is used mainly by large enterprises, which are characterized by a stable income. For new business entities, it is easier to use the simplified system at the initial stage, since it does not involve accounting. With it you can only reflect the income and expenses in the corresponding accounting book.