Rules for providing tax holidays for individual entrepreneurs. Tax holidays for individual entrepreneurs in the regions Which areas of activity are subject to tax holidays

Vacations are good, but “tax holidays” are even better. To make it easier for beginning entrepreneurs to get on their feet, the state exempted them from paying one or more taxes. This turned out to be a great incentive for beginners, since tax reporting is complex. But don’t be too happy: the holidays will last only 2 years from the date of registration of the individual entrepreneur. Now you will find out who can afford such a vacation.

Important points

The grace period for individual entrepreneurs, during which they are exempt from paying taxes, is called “tax holidays”. According to Art. 346.20 of the Tax Code of the Russian Federation at the level of amendments to the legislative act Federal Law No. 477 of December 29. In 2014, changes were made according to which regional authorities of the Russian Federation have the right to establish a zero tax rate for individual entrepreneurs. The law officially came into force on January 1, 2015. Benefits are provided until 2020.

Regional authorities can introduce “tax holidays” for individual entrepreneurs for 2 years, and also independently set their start date and procedure. If an entrepreneur wants to take advantage of the “tax holiday,” he needs to make sure that this federal legislation has already been adopted in his region. The list of regions in which “tax holidays” apply can be viewed.

Regional authorities can introduce “tax holidays” for individual entrepreneurs for 2 years, and also independently set their start date and procedure.

Terms of use

Not all entrepreneurs can take advantage of the right to a “tax holiday”.

1. New individual entrepreneurs registered for the first time. If an entrepreneur has suspended his activities for any period, re-opening an individual entrepreneur does not give him the right to enjoy benefits.
2. “Tax holidays” can be taken by individual entrepreneurs working on a patent or simplified tax system. If an entrepreneur switches to these types of taxation within 2 years from the date of registration, benefits will also be available to him.
3. “Tax holidays” can be used by individual entrepreneurs that opened after the region adopted the law on the entry into force of the grace period.

Attention! The period during which an entrepreneur is exempt from taxation is only the first 2 years of his activity. However, during this time he is obliged to keep records of income, as well as make mandatory contributions of pension and insurance payments to extra-budgetary funds.

Regional authorities have the right to introduce additional restrictions on the provision of “tax holidays” to individual entrepreneurs (for example, benefits are not provided to individual entrepreneurs who have an amount of income higher than the established one (Article 249 of the Tax Code of the Russian Federation) or whose enterprise employs a number of employees exceeding the norm).

Areas of activity

When developing this legislation, a number of restrictions were prescribed on the types of activities that will be provided with these benefits (clause 4 of Article 346.20 of the Tax Code of the Russian Federation). Privileges can be enjoyed by individual entrepreneurs whose areas of activity include the following areas:

• social;
• production;
• scientific.

The list of areas of activity falling under the “tax holiday” covers about 40 areas. This is the production of medical equipment, textiles, computer equipment, cellulose, the provision of social services, and scientific work. During the “tax holiday” in Moscow, the authorities expanded this list to include tutoring, translations, and excursion activities.

The amount of income an individual entrepreneur receives from providing services, work or selling goods at the end of the tax period must be at least 70% of the total income.

"Tax holidays" in 2017

Since 2016, those without employees have been allowed to use the patent system (PSN). They can obtain a patent in a simplified manner and enjoy a “tax holiday” with a 0% rate.

Patents can be obtained by individual entrepreneurs whose activities cover the following areas:

• sewing leather goods;
• forestry;
• livestock grazing services;
• collection and sale of medicinal plants;
• catering services;
• translation (oral or written);
• use of forest resources;
• care services for disabled and elderly people;
• fishing.

Also, regional authorities significantly expanded their powers in 2016. They have the right to independently determine:

1. Limits of introduction and transition to tax holidays.
2. Nuances when specifying the tax base.
3. Types of activities of individual entrepreneurs that can use the patent taxation system.
4. The tax rate depends on the taxpayers and the field of activity of the individual entrepreneur.
5. Tax benefits and the process of their application.

“Tax holidays” are a powerful incentive for start-up entrepreneurs, allowing them to minimize the tax burden. Such benefits provide significant support to small businesses and allow them to expand their business activities.

It's no secret that starting your own business requires from an individual entrepreneur not only determination, but also a huge investment of effort, time and money. Even with a certain amount of initial capital, the first steps are not easy, especially during periods of unstable economic conditions.

That is why the state has developed a special program to support start-up businessmen, one of the most important components of which is tax holidays.

What are tax holidays: main points

In short, the essence of tax holidays is that for a certain period of time a person registered as an individual entrepreneur has the right not to pay taxes to the state budget. However, this relief can only be applied if certain conditions are met.

• An individual entrepreneur must be officially registered for the first time with government authorities and control;
• Taking advantage of temporary tax exemption is possible only when applying a simplified tax regime and the patent system. No other tax schemes provide this right;
• No less than 70% of the total profit of the individual entrepreneur must come from the sale of goods, performance of work and provision of services that are subject to a zero tax rate (see the next paragraph);
• An individual entrepreneur must be engaged in either production, social or scientific projects, and specific types of activities for which a grace period can be applied are assigned to local authorities.

Municipal laws have the right to introduce additional restrictions for individual entrepreneurs who are entitled to tax holidays on one or more of the following positions:

• number of registered personnel;
• maximum amount of income during the year;
• according to certain OKVED codes.

IMPORTANT! A tax benefit is granted to an entrepreneur only if he became one for the first time after the adoption of the relevant regional law.

If an individual entrepreneur who has the right to receive a tax holiday accidentally violates at least one of these points, he is obliged to report this to the territorial tax service to recalculate tax rates. In case of voluntary and timely notification of the Federal Tax Service, he will be released from administrative liability, which occurs if the tax authorities themselves discover that the individual entrepreneur does not comply with the requirements.

Important! Sometimes individual entrepreneurs use two tax systems simultaneously, for example. In this case, they must keep separate tax records for them in order to have a clear understanding of whether the individual entrepreneur complies with the parameters that the law requires for applying the zero rate (for example, by income level).

Attention! If an individual entrepreneur did not immediately decide on the tax regime and automatically switched to the OSNO, on which the application of a zero tax rate is impossible, then in the future he has the right to change it to the simplified tax system or the PNS. This must be done within a two-year period, since this is how long the tax holiday lasts.

Re-opening an individual entrepreneur to obtain the right to tax holidays

Many individual entrepreneurs who have been conducting their commercial activities for a long time are scratching their heads over how to optimize the amount of tax payments. In connection with the advent of tax holidays, some have a logical question: is it possible, and then reopened, and thus gain the right to apply a zero tax rate?

The temptation, of course, is great, but the law clearly states that if a person was previously registered as an individual entrepreneur, then he will no longer be able to take advantage of the zero rate. All information about individual entrepreneurs, including former ones, is stored in a special database, so checking the background of any individual registered with the state as an individual entrepreneur is as easy as shelling pears for tax authorities.

Nuances of tax holidays

In cases where an individual entrepreneur has the opportunity to take advantage of tax holidays, he must remember the following subtleties:

• the zero rate for the simplified tax system and the PNS does not exempt from other tax payments (for example, land or transport tax, patent fees, insurance payments, etc.);
• even if an individual entrepreneur is on a tax holiday, he still needs to pay social contributions to the Pension Fund and FFOMS for his staff, because these contributions do not apply to taxes, which means that the holidays do not apply to them;
• regular reporting is required, even if it is zero;
• Tax holidays are valid for a maximum of two years. That is, if the individual entrepreneur did not immediately switch to “simplified” or a patent, then the elapsed time from the moment of registration will be lost for preferential use.

Important! Each region independently determines some features of the application of tax holidays, including the maximum period and some other conditions. Details on these must be clarified with local tax authorities.

The specifics of the law on tax holidays in a specific region can be found out by contacting the tax office at the place of registration of the individual entrepreneur. Be careful: exactly at the place of registration of the entrepreneur, and not at the place where he conducts his activities! You can call the hotline at the Federal Tax Service, where they are authorized to advise people on this issue.

Types of activities in Moscow covered by tax holidays

FILES

How to apply for tax holidays

The algorithm for obtaining the right to apply a zero tax rate is quite simple:

1. You need to register as an individual entrepreneur and, subject to the required scope of activity, immediately submit a notice of transition to the “simplified tax” or PNS;
2. Submit a package of certain documents to the Federal Tax Service;
3. During the grace period, you need to submit reports to the simplified tax system with zero rates;
4. Using the patent system, the value of the patent should be reported as zero.

Who controls the application of tax holidays?

The right to provide tax holidays is reserved for the regions of the Russian Federation. As mentioned above, they have the right to make their own adjustments to the application of the zero tax rate, including changing its conditions, period and determining specific types of activities that fall under this possibility. In addition, local authorities may place restrictions on the use of tax holidays by individual entrepreneurs depending on their income level.

Limits on income and number of employees

According to the law, the maximum amount of income at which tax holidays can be applied is limited to 60 million rubles. If the profit of an individual entrepreneur is higher than this figure, then he will no longer be able to take advantage of the zero rate. The situation is exactly the same with hired employees - as a general rule, their number should not exceed 100 people.

It is important to remember that these indicators may change depending on the wishes of regional legislators, but no more than 10 times downward.

Attention. If any conditions of tax holidays are violated, no matter federal or regional, the individual entrepreneur loses the right to apply them.

Insurance premiums for individual entrepreneurs during tax holidays

You'll have to do the same pay any other taxes, who do not understand the simplified taxation system or the patent.

Validity periods of tax holidays

The last tax holidays were introduced in 2015 due to difficulties in the economic sphere of the Russian Federation. Their effect will be valid until 2020. This means that entrepreneurs who register for the first time this year have the right to them for another two years, that is, exactly the two tax periods required by law - the maximum “vacation” period.

It is possible that holidays for entrepreneurs will be extended after 2020 if significant preconditions arise for this.

Based on the above information, we can conclude that tax holidays are quite possible for individual entrepreneurs who have just registered with the state. However, in order to obtain the right to them, a number of necessary conditions must be met, and violation of at least one of them immediately deprives the right to apply the zero tax rate. However, this benefit is a very important part of the state program to support small and medium-sized businesses and, without a doubt, in the coming years it will be in great demand among young entrepreneurs involved in these areas.

Good afternoon, dear individual entrepreneurs!

Many people open individual entrepreneurs in the hope of receiving the so-called “tax holidays,” which were introduced back in 2015. Someone somewhere heard something =), and then they are terribly surprised when they are denied this benefit.

Let me note right away that the idea of ​​tax holidays is really very good. But, as always, there are many nuances that you need to keep in mind in order to get this tax break.

So, let’s take a brief look at this topic of concern to many in the “Question-Answer” format for 2018-2020. By the way, you can watch my video on this topic, or read the text version below:

1. Who can receive tax holidays in 2018-2020?

It is necessary that the following conditions for individual entrepreneurs be simultaneously met:

1. IP in your name must open for the first time. That is, if you close your current individual entrepreneur, and in good faith come for the right benefit, like a newly opened individual entrepreneur, then you will be refused. That is, This benefit applies only to those who register as individual entrepreneurs for the first time. Moreover, no more than two years have passed since the registration of the individual entrepreneur, and the registration itself took place AFTER the entry into force of the REGIONAL law on tax holidays.
2. You must work in one of these three areas: industrial, social, scientific.
3. Moreover, the share of such activities should be NOT LESS THAN 70% of the total income of the individual entrepreneur.
4. In your region a local law must be passed, which allows tax holidays.

Moreover, regional authorities may introduce the following restrictions:

1. By number of employees;
2. According to the maximum income per year;
3. They will prescribe specific activity codes according to OKVED, which are subject to tax holidays.

Thus, an individual entrepreneur who wants to receive a tax holiday must carefully study local laws to understand whether his activities qualify for this benefit or not.

You should also find out from local laws which specific OKVED codes fall under this benefit. They must be clearly defined, since the concepts of scientific, industrial or social sphere can be taken to mean almost any type of entrepreneurial activity =)

All this can be found out at your tax office, where you registered as an individual entrepreneur.

2. Have tax holidays been introduced in all regions of Russia?

No, not in all of them. The fact is that this benefit is left to the discretion of local authorities. And these holidays are not yet in effect in all regions of the Russian Federation. But in Moscow they have already been introduced:

In order for them to be introduced in your region, local authorities must first pass a law (clause 4 of Article 346.20 and clause 3 of Article 346.50 of the Tax Code of the Russian Federation, Federal Law No. 477-FZ of December 29, 2014).

Important: You can count on tax holidays only if you have opened AFTER the entry into force of the relevant REGIONAL law.

Naturally, if an entrepreneur is “tied” to the tax office by registration, then benefits must be expected and claimed in the region where the future individual entrepreneur is registered. And not where he will operate.

How can I find out if there are holidays in my area?

The easiest way is to call the Federal Tax Service hotline.

There is now a toll-free line from the Federal Tax Service, where your questions will be answered:

Which individual entrepreneur taxation systems will be covered by the holiday?

1. Individual entrepreneur on the simplified taxation system (Simplified or simplified taxation system)
2. Individual entrepreneur on PSN (Patent taxation system)

Other taxation systems are not specified in the law, which means they cannot count on this benefit.

What happens if I go beyond the tax holiday limits?

A reasonable question. Indeed, you will immediately lose this benefit as soon as you violate one of the conditions given above. If an individual entrepreneur loses the right to apply a zero rate, then according to:

In case of violation of restrictions on the application of a tax rate of 0 percent established by this chapter and the law of a constituent entity of the Russian Federation, an individual entrepreneur is considered to have lost the right to apply it and is obliged to pay tax at the tax rates provided for in paragraph 1, 2 or 3 of this article for the tax period in which these restrictions are violated. (Clause 4 introduced by Federal Law dated December 29, 2014 N 477-FZ)

That is, if your benefit is considered invalid, then pay taxes for the entire period when it was declared invalid for you as an individual entrepreneur.

And paragraphs 1,2,3 read verbatim as follows:

1. If the object of taxation is income, the tax rate is set at 6 percent. 2. If the object of taxation is income reduced by the amount of expenses, the tax rate is set at 15 percent. The laws of the constituent entities of the Russian Federation may establish differentiated tax rates ranging from 5 to 15 percent, depending on the categories of taxpayers. (as amended by Federal Law No. 224-FZ of November 26, 2008) 3. By the laws of the Republic of Crimea and the federal city of Sevastopol, the tax rate can be reduced in the territories of the relevant constituent entities of the Russian Federation for all or certain categories of taxpayers. For the periods 2015-2016, the tax rate can be reduced to 0 percent. For the periods 2017 - 2021, the tax rate can be reduced: - to 4 percent if the object of taxation is income; - up to 10 percent if the object of taxation is income reduced by the amount of expenses. At the same time, tax rates cannot be lower than 3 percent and can be differentiated depending on the categories of taxpayers. Tax rates established in accordance with this paragraph by the laws of the Republic of Crimea and the federal city of Sevastopol cannot be increased during the periods specified in this paragraph, starting from the tax period from which the reduced tax rate is applied. (Clause 3 introduced by Federal Law dated November 29, 2014 N 379-FZ)

How long will the holidays last?

From January 1, 2015 to December 31, 2020. That is, you can count on another three years of this benefit. To be precise, they will be in effect in 2018, 2019 and 2020. But for a particular individual entrepreneur, tax holidays can last no more than two tax periods from the date of registration as an individual entrepreneur.

Maybe they will be extended after 2020, but at the moment there are no such prerequisites. Stay tuned for blog updates, if anything changes, I will write about it.

What about contributions to the Pension Fund? Do they need to be paid?

Yes, it is necessary.

It is a big mistake to think that if an individual entrepreneur is on vacation, then there is no need to pay mandatory contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and for your employees). Need to.

Let me emphasize once again that this is a tax benefit under the simplified tax system (or PSN). And contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund do not apply to taxes.

Do you need to submit reports?

Necessarily. Even if you have zero reporting, you need to submit it. And I repeat once again that tax holidays for individual entrepreneurs do not mean that reporting can be completely ignored.

Pay all contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and your employees), submit reports. Everything is as usual.

How do you even get this benefit? Do I need to write some kind of statement?

Good question. Since tax holidays are introduced at the regional level, you need to contact your tax office for information on such issues. Let me remind you once again that this is an inspection that is “linked” to the registration address in your passport.

To summarize:

1. You should clarify the question of whether tax holidays apply in your region;
2. Find out the specific OKVED codes that fall under this benefit;
3. Your individual entrepreneur must be on the simplified tax system or PSN;
4. You must comply with all restrictions prescribed by law;
5. Submit all tax returns, despite the fact that they will be zero.

Well, there may be other nuances that may arise during your work.

P.S. If you have additions to this information, you can write them below.

Other important changes for 2017 for individual entrepreneurs:

Don't forget to subscribe to new articles for individual entrepreneurs!

And you will be the first to know about new laws and important changes:

Dear readers!

A detailed step-by-step guide to opening an individual entrepreneur in 2019 is ready. This e-book is intended primarily for beginners who want to open an individual entrepreneur and work for themselves.

This is what it's called:

"How to open an individual entrepreneur in 2019? Step-by-step instructions for beginners"

From this manual you will learn:

1. How to properly prepare documents for opening an individual entrepreneur?
2. Selecting OKVED codes for individual entrepreneurs
3. Choosing a tax system for individual entrepreneurs (brief overview)
4. I will answer many related questions
5. Which supervisory authorities need to be notified after opening an individual entrepreneur?
6. All examples are for 2019
7. And much more!

Dear entrepreneurs!

A new e-book on taxes and insurance contributions for individual entrepreneurs on the simplified tax system of 6% without employees is ready for 2019:

"What taxes and insurance premiums does an individual entrepreneur pay under the simplified tax system of 6% without employees in 2019?"

The book covers:

1. Questions about how, how much and when to pay taxes and insurance premiums in 2019?
2. Examples for calculating taxes and insurance premiums “for yourself”
3. A calendar of payments for taxes and insurance premiums is provided
4. Frequent mistakes and answers to many other questions!

Dear readers, a new e-book for individual entrepreneurs is ready for 2019:

"IP on the simplified tax system 6% WITHOUT Income and Employees: What Taxes and Insurance Contributions must be paid in 2019?"

This is an e-book for individual entrepreneurs on the simplified tax system of 6% without employees who have NO income in 2019. Written based on numerous questions from individual entrepreneurs who have zero income and do not know how, where and how much to pay taxes and insurance premiums.

The slowdown in economic growth and falling incomes in the primary industries are forcing people to think about starting their own business. With high loan rates, it is not always easy to start your own business and develop it while paying tax authorities and contributions to funds.

In these conditions, the government and legislative bodies have launched a mechanism that can provide significant support to young companies.

One of the most effective methods of stimulating business activity is the provision of tax holidays.

The practice of using a popular economic measure has found its application in our country.

What are tax holidays

Tax holidays have certain advantages compared to other instruments used. Taking into account possible reductions in budget revenues, the authorities are actively using this opportunity.

Among the measures to reduce the tax burden are:

1. Exemption from certain types of taxes. More often than others they don’t charge.
2. Reducing the rate of individual payments for a certain period.
3. Using various combinations of these two measures.
   For example, the cancellation of an individual payment for 2 years is replaced by a 50% reduction in payment for the subsequent 3-year period.

Providing a grace period allows you to quickly receive an influx of investment into the country and create additional jobs. The selectivity of the incentive measure can be aimed at creating innovative products, or increasing production in a particular area of ​​business, such as agriculture.

Among the possible negative indicators, economists cite possible distortions in pricing, or the use of the grace period as a tool for evading payment of other types of taxes.

Tax Holiday Law 2019

Taxation is regulated on the basis of Federal Law No. 477 - FZ. Changes in the regulatory document concern the establishment of a special regime for certain categories of individual entrepreneurs and small businesses.

Amendments to the Federal Law at the end of 2014 made it possible to introduce tax holidays in certain regions of Russia already in 2015. For the remaining territories, the grace period will begin during 2019.

Administrations of constituent entities inform on their own information resources about the start dates for use and the conditions for applying the provisions of the regulatory document.

For example, if in the Pskov region tax benefits have been applied since 2015, then in the Perm region the decision to apply the Federal Law was made at a meeting of the legislative assembly only on March 19, 2016.

Individual regions are given the right to independently determine incentive measures. This is due to the specifics of the region, the structure of the market, where market revitalization is required in certain areas of business.

General conditions of tax holidays

The selective application that independent regions may make must be consistent with the main provisions of the document.

The application of the legal act from the position of reducing the tax burden provides for the following categories of legal entities:

• individual entrepreneurs (IP) who use a simplified system for paying mandatory contributions in their activities;
• legal entities using .

The business must be registered for the first time after the law comes into force.

When planning to use the provisions of a regulatory document, you should not resort to re-registration or changing the form of organization of the enterprise. It will not be possible to achieve inclusion in the category of preferential business entities.

In the case of applying a preferential system for paying mandatory contributions, the entrepreneur is not exempt from maintaining reporting documentation and submitting it to the tax authority. This applies to both the rate and the rate at 0%.

Find out who may be exempt from taxes in the next three years from the video.

Tax holidays for individual entrepreneurs using the simplified tax system in 2019

Registration of an individual entrepreneur in accordance with the noted conditions does not allow every private business to count on a reduction in established rates. Additional conditions must be met.

The company's field of activity must be in one of the following niches:

• scientific direction;
• social sphere;
• production activities.

The main provisions for determining the direction of the company’s activities are defined as:

1. The main field of activity falls into one of the three specified in the Law.
   This provision is determined by the profit margin for the priority segment of activity in the amount of at least 70%.
2. An open branch of business, along with highly efficient production, cannot be considered an object for the application of preferential rates.

To apply a tax rate of 0%, only three types of mandatory deductions are used - on profit, on value added and on property.

It is logical that basic “social” obligations, such as payments to the Pension Fund, Social Insurance Fund, and others, must be paid in full and on time.

Tax holidays for persons on a patent (PSN)

The patent system for paying mandatory payments works successfully in different regions. This is due to the convenience of payment and reducing the likelihood of making mistakes.

The grace period provides similar benefits as in the case of the simplified tax payment system. Payment of transport fees, patents, excise taxes and traditional deductions will be mandatory.

An entrepreneur, before choosing a patent taxation system, should analyze the mechanism of the Federal Law in a particular region. Thus, in the Altai Territory, the possibility of tax holidays concerns specifically the patent system.

And in some regions, only individual entrepreneurs with a simplified system receive benefits:

• Saint Petersburg;
• Primorsky Krai;
• Volgograd region;
• Krasnodar region.

The indicator for small business organizations that took advantage of the grace period does not exceed 10% in certain regions. This is due to the limited scope of business and the start of the current law.

Tax holidays for LLCs 2019

One of the types of ownership of small or medium-sized businesses is Limited Liability Companies. When considering these organizations for the right to receive tax benefits, the right to participate in the Federal program was potentially recognized.

Recent changes to the regulatory document do not allow the use of a “zero” rate on some mandatory payments for. Legislative bodies refer to the lack of an effective mechanism that will allow tracking the re-registration of organizations with this form of ownership.

Benefits for small businesses

To receive a simplified system for making mandatory payments, small businesses must meet a number of mandatory conditions:

1. This year, register the company as an individual entrepreneur.
   For a specific region, the launch of the mechanism based on the Federal Law should be clarified.
2. Establish the possibility of paying taxes under a simplified system or through a patent system.
3. Fix a minimum share of 70% in case of receiving income from several areas of activity with a predominance of the selected areas - scientific, social or production.

What restrictions can be set?

When using tax holidays, it is not enough just to take advantage of the right to receive a grace period. The owner of the enterprise must also take into account some of the restrictions that are established for program participants.

During the provided period, possible changes in the type of activity must be agreed with local authorities. The grace period is usually set for two years (two tax periods), but the time frame for possible use of the current opportunity is somewhat wider - until 2020.

In some cases, the opportunity to use the benefits provided may be divided into two annual periods, where, if there are no violations in the first year, the program is extended for the next period.

Violations of established rules identified by regulatory authorities lead to deprivation of the right to use established benefits. In this case, the standard rate of mandatory payments will be charged for the entire calendar year in which violations were detected.

The right to establish additional restrictions is granted to local authorities. Taking into account the characteristics of the region, these rules will be specified in a separate regulatory document within the region.

It is known that in a number of subjects of the federation such a limitation is the number of hired workers, the number of similar enterprises in certain areas of activity. You should definitely contact your local authorities in advance and clarify the conditions for including an entrepreneur in the block of tax benefits.

The development of the Federal Law has made it possible to revive small and medium-sized businesses in all regions of Russia.

The number of registered private enterprises meeting the established requirements has increased.

It is possible that the practice of applying current legislation will be adjusted if the first stage is successfully implemented.

Find out about taxes in 2019 from the video.

The protracted crisis in Russia could not but affect the economic situation in the country, and most of all it affected individual entrepreneurs, most of whom were unable to deal with many problems. This could not go unnoticed by the government of the country, where it was decided to provide tax holidays to individual entrepreneurs starting in 2015, which would provide an opportunity for at least a little respite from a number of problems.

What are tax holidays for individual entrepreneurs?

Times are difficult now and the task of the state is to provide all possible assistance to small businesses in the context of a protracted crisis. That is why the government decision followed, which is considered to be tax exemption for start-up entrepreneurs from 2019. What is the 2019 tax amnesty for individual entrepreneurs?

Registered persons have the right to be exempt from a number of tax obligations on the simplified tax system and special tax system. All other taxes, which include excise taxes, land tax, etc., must continue to be paid. Also, an entrepreneur who is exempt from taxes must continue to pay mandatory insurance contributions for pension insurance, both personally for himself and for all employees without exception.

It should be noted that all the newly appeared rumors that newly opened individual entrepreneurs in 2019 are exempt from taxes are not true and they are completely inconsistent with the new Federal Law.

Who will receive tax benefits?

According to the new law, the tax amnesty for individual entrepreneurs applies only to those representatives of small businesses who have chosen individual entrepreneurship. They are also required to meet a number of requirements:

• Individual entrepreneurs must register for the first time no earlier than 2015. This requirement completely excludes the possibility of closing an existing business followed by registration;
• Tax benefits can only be enjoyed by those individual entrepreneurs who operate only on the simplified taxation system (simplified taxation system) or PSN (patent). If a newly registered individual entrepreneur uses a standard taxation system or special regimes that do not provide the opportunity to receive preferential working conditions, he must submit documents within two years to make the transition to a “simplified tax” or a patent;
• The areas of activity of individual entrepreneurs for obtaining tax amnesty are strictly distributed: this must certainly be scientific, social or industrial spheres. Since 2016, the list has been supplemented by entrepreneurs who provide household services to Russian citizens.

To qualify for tax exemption for individual entrepreneurs in 2019, you should also take into account the specific application of tax regimes covered by the amnesty:

• Number of employees: no more than 100 for the simplified tax system, no more than 100 for the PSN;
• Maximum income: no more than 60 million rubles in both options.

This law on tax exemption for individual entrepreneurs has already come into force throughout the Russian Federation, and serious changes have been made to the Tax Code itself regarding the taxation of individual entrepreneurs, who could again find themselves in a rather difficult situation.

How should the process of applying for preferential taxation go?

The law on tax exemption for individual entrepreneurs for 2 years presupposes a standard procedure for obtaining benefits. An entrepreneur must:

1. Contact the Federal Tax Service to find out whether this type of preferential taxation can be used for individual entrepreneurs in a certain region, and whether the type of activity carried out by an entrepreneur can fall under the zero rate;
2. Select a specific type of activity that is subject to federal law, register the business and begin to take the first steps to register it;
3. Prepare a package of documents required for registration;
4. Write an application for a patent - if nearby plans include the use of PSN, and submit it to the tax service along with a package of documents;
5. Fill out an application for transition to the simplified tax system - in case the entrepreneur intends to work on a simplified system, and submit it to the Federal Tax Service no later than 30 days after the end of registration.

It is worth noting that in any given region where this bill is in force, there are certain conditions adjusted by local authorities. For example, regional authorities can set the time period for the validity of an adopted law at their discretion. So, if in Udmurtia and Voronezh tax holidays for newly opened individual entrepreneurs completely coincide with federal law, then in the Altai Territory this applies only to entrepreneurs on the PSN. You can learn as much as possible about the conditions for introducing benefits and the rules for exempting individual entrepreneurs from taxes at the regional office of the tax service.

Conditions for providing tax benefits for individual entrepreneurs

As mentioned above, individual entrepreneurs opened in 2019 are exempt from taxes, but in order for the tax rate to be zero, it must adhere to a number of necessary conditions:

1. The entrepreneur was registered after the adoption and entry into force of the tax amnesty law;
2. UPN or PSN is used;
3. The enterprise's activities must be carried out only in areas permitted by law;
4. The share of profit from core activities must be at least 70% of all income;
5. A zero tax rate must certainly be agreed upon with regional authorities, who have the right to make certain adjustments to preferential conditions.

Tax holidays for newly opened individual entrepreneurs in Moscow and the Moscow region

The validity periods of tax benefits for individual entrepreneurs with the simplified tax system and PSN in the capital and the region are the same: for Moscow from March 2015 to the end of 2020, for the region - from April 2015 to the end of March 2018. And if Moscow start-up entrepreneurs are exempt from taxes, there are certain conditions for their work at a zero tax rate.

For example, the average number of employees, according to city legislation, under both taxation systems should not exceed fifteen people, otherwise there is a possibility of termination of tax holidays. It was necessary to introduce a certain restriction - and it was introduced.

Tax holidays for individual entrepreneurs in 2019: types of activities permitted in Moscow and the region

To date, the types of activities that fall under tax holidays for newly opened individual entrepreneurs are prescribed in the Moscow law of March 18, 2015.

Among them, 25 types of activities that fall under the tax amnesty for entrepreneurs operating on a simplified basis include: production of ready-made clothing, sporting goods, textiles, footwear, food products, furniture production, processing of secondary raw materials, tutoring and other educational services, developments in fields of science, etc.

There are also 17 types of business based on a patent and there is hope that new types will be opened. Among them it is necessary to highlight:

• Repair of clothes and shoes;
• repair and warranty service of household appliances;
• Services related to the upbringing and education of children;
• Private medical practice;
• Translation services;
• Artistic folk crafts, etc.

For now, these are all types of activities that fall under tax holidays, but there is a possibility that their number will be expanded and in the coming months new individual entrepreneurs will open their own businesses in absolute compliance with the adopted Federal Law.

As far as we know, not all entrepreneurs will be exempt from taxes: the types of activities that fall under tax holidays in 2019 for individual entrepreneurs are strictly regulated. Yes, and starting your own business in modern conditions does not always work out, but the opportunity to get rid of taxes is one of the options for getting out of the current situation.

Video: how individual entrepreneurs can be exempt from taxes