What reporting is provided for individual entrepreneurs on UTII?

The concept of “Unified tax on imputed income (UTII)”

The unified tax on imputed income (UTII) is a system of taxation of certain types of activities of entrepreneurs.

The UTII tax is not levied on an individual entrepreneur or a legal entity, but on the type of entrepreneurial activity

UTII can be combined with the OSN (General Taxation System) or the Simplified Taxation System (USN).

UTII differs from other taxation systems in that the tax in this case is taken from imputed income (and not from actually received).

Application of the UTII system for individual entrepreneurs in 2020

The transition of organizations and individual entrepreneurs to UTII is voluntary. Individual entrepreneurs and legal entities can apply the Unified Tax on imputed income if they carry out activities that fall under UTII.

The use of UTII is not allowed:

• taxpayers whose activities are related to the provision of services in the field of public catering, social security, education and healthcare, in terms of business activities for the provision of public catering services, if the provision of public catering services is an integral part of the functioning of these organizations and these services are provided directly by these organizations;
• taxpayers receiving large incomes;
• for individual entrepreneurs and organizations that lease out gas and gas filling stations;
• UTII is not allowed for individual entrepreneurs and organizations whose number of employees exceeds one hundred people (for the previous calendar year), except for consumer cooperation organizations, as well as in relation to business companies, the only founders of which are consumer societies and their unions;
• for organizations in which more than 25% is accounted for by other organizations.

The single tax on imputed income cannot be applied to the types of business activities specified in Art. 346.2, clause 2 of the Tax Code of the Russian Federation.

From January 1, 2020, UTII is prohibited from being used when selling goods subject to mandatory labeling.

Transition to UTII

The transition of an individual entrepreneur to UTII is possible only if a type (or types) of activity is carried out that falls under this taxation system in accordance with local legislation.

Termination of business activity on UTII is permissible only in connection with the termination of a type of activity that falls under the scope of the Unified Tax on Imputed Income.

Federal Law No. 94-FZ dated June 25, 2012 establishes a voluntary transition to paying UTII for individual entrepreneurs and organizations.

OSNO, simplified tax system and UTII

General taxation system

Individual entrepreneurs under the general taxation regime must provide the tax inspectorate with reporting information on personal income tax and VAT:

• report on form 3-NDFL – once a year until April 30 (for personal income tax);
• VAT return – by the 25th day after each quarter (must be submitted electronically).

General regime residents are required to file a declaration regardless of whether they received income or not. If there is no income, a zero declaration is submitted. Submission deadlines are the same.

Entrepreneurs on OSNO who have just started doing business must also report on Form 4-NDFL. The declaration must indicate the amount of expected income for the next year. Reporting in this form must be submitted at least once. Term – within five days after receiving the first income from business activity. Such a report is necessary so that the tax office can calculate advance payments for personal income tax.

When calculating advances for the following periods, tax authorities will start from the income for the past year. Thus, there is no need to submit a declaration annually in Form 4-NDFL. However, if income increases or decreases by more than 50 percent, it will be necessary to recalculate the advances.

Simplified taxation system

Individual entrepreneurs need to report only once a year. The deadline for filing a declaration for the year for individual entrepreneurs on the simplified tax system is no later than April 30.

All simplified entrepreneurs have one declaration form. The difference in filling out the sections depends on the object of taxation: income for the simplified tax system of 6% and income minus expenses for the simplified tax system of 15%.

If during the reporting period the individual entrepreneur was not engaged in entrepreneurial activity or had no income, he is obliged to report in any case by filing a zero declaration.

A single tax on imputed income

Entrepreneurs using UTII report quarterly, that is, every three months. They are required to submit a UTII declaration within the following deadlines:

• for the first quarter – until April 20;
• for the second quarter – until July 20;
• for the third quarter – until October 20;
• for the fourth quarter – until January 20.

If the specified deadline falls on a weekend or holiday, you must submit the declaration on the next business day. For example, in order to report for the third quarter of 2020, an imputed individual entrepreneur had to submit a declaration no later than October 21, 2020.

Note: the UTII declaration must be submitted to the Federal Tax Service where the entrepreneur registered as a UTII payer. If an individual entrepreneur is registered with several branches of the tax office, he must report to each Federal Tax Service.

Entrepreneurs on UTII are required to keep records of physical indicators necessary for calculating tax. These include employees, vehicles, retail space and the like. They may not keep records of income and expenses for tax purposes.

Individual entrepreneurs on imputation do not submit a zero declaration, including those cases when there was no activity or no income. It is believed that they can file a zero return if there was no physical indicator, but this has no clear legal basis.

Individual entrepreneur reporting on UTII

It is mandatory to submit a UTII declaration. The filing deadline is the 20th (the first month of the next tax period). In this case, the tax period means a quarter.

Tax reporting requirements in the Russian Federation may vary. It all depends on the region of registration of the individual entrepreneur and local legislation.

Note that the reporting of individual entrepreneurs on UTII largely coincides with the reporting on the OSN and the simplified tax system.

The new form of the UTII declaration was approved by Order of the Federal Tax Service of Russia No. ММВ-7-3/414 dated June 26, 2018. For the first time, the updated declaration form had to be submitted for the 4th quarter of 2020. In 2020, no changes will be made to the UTII declaration.

Deadline for submitting the UTII declaration in 2020:

Is there a zero declaration for UTII?

There is no such thing as a “zero” UTII declaration. The imputed system does not provide for reporting without indicators. This contradicts the essence of this tax regime. If in the simplified form the tax is calculated based on the income actually received, then in the UTII it is calculated from the imputed, that is, established by the state, income. And therefore, the simplifier can afford to submit reports with zeros, but the imputed person cannot.

There are several reasons why imputators decide to provide “zero” declarations:

• Activities have been suspended due to lack of income.
• There is no activity at all.

Individual entrepreneur taxes on UTII

Payment of UTII is made no later than the 25th day of the first month of the next tax period (quarter).

UTII, as mentioned earlier, is calculated based on the physical indicator of activity, and not on the actual income of the individual entrepreneur.

The term “physical performance indicator” should be understood that, depending on the type of business, the indicator may be:

 number of employees;  number of cars;  sales floor area, etc.

In addition to paying the UTII tax itself, the following are obligatory to pay:

• fixed contributions for individual entrepreneurs for pension and health insurance;
• from wages of employees:

 health insurance contributions;  contributions to compulsory pension insurance;  contributions for temporary disability and maternity;  contributions for insurance against accidents and industrial diseases;  Personal income tax.

Individual entrepreneurs on UTII in 2020 are exempt from paying:

 property tax, with the exception of property for which the cadastral value has been determined;  value added tax (VAT);  income tax.

As an employer

If an individual entrepreneur is registered in the funds as an employer, then in addition to insurance premiums “for himself,” he must pay contributions from the wage fund (payroll) of employees. The contribution amounts are as follows:

• Pension Fund - 22% of the payroll of employees.
• Compulsory medical insurance – 5.1% of the payroll of employees.
• Social Insurance Fund - 2.9% of the wages of employees (if the employees are foreigners and work under a patent, the contribution amount is 1.8% of the wages).
• Insurance against accidents at work - 0.2% of the payroll.

Moreover, payment of contributions to the Social Insurance Fund is mandatory here. The employer is required to report quarterly to all funds. The employer can issue a deduction when calculating UTII for the amount of contributions paid for employees, but it cannot exceed 50% of UTII (clause 2 of Article 346.32 of the Tax Code of the Russian Federation).

In conclusion, we draw your attention to the fact that the absence of entrepreneurial activity does not give an individual entrepreneur the right not to pay fees “for himself”. Payment of amounts to funds for employees is made from the calculated payroll. If it is missing, contributions are not paid, but zero reporting is required to be submitted to the funds.

Calculation of UTII in 2020

The formula for calculating UTII in 2020 does not change, only its components change.

UNDV annual = BAZ D * FizPok * 15% * K1 * K2, where:

• BAZ D – the indicator of basic profitability established by clause 3 of Art. 346.29 Tax Code of the Russian Federation;
• FizPok - a physical indicator of activity on UTII (number of square meters of a retail outlet, number of employees, etc.);
• 15% — tax rate for UTII;
• K1 – federal deflator coefficient. For 2020, its size is determined as 2.009;
• K2 – regional deflator coefficient. Set by local authorities depending on the location of business and economic indicators.

Information about K2 is contained in the regional UTII Laws.

However, the Central Bank of the Russian Federation, by its instruction No. 3210-U dated March 11, 2014, which came into force on June 1, 2014, simplified the procedure for observing cash discipline for all entrepreneurs, including those using UTII. Individual entrepreneurs may not fill out the cash book and, accordingly, receipts and expenditure orders if they keep records of indicators for tax purposes. They are allowed not to set a cash register limit, and, therefore, to keep funds in the cash register without restrictions.

To the Pension Fund

The calculation of insurance contributions to the Pension Fund in 2020 is not tied to the minimum wage, as before.
The law sets the amount of the contribution - 26,545 rubles. This contribution is considered fixed and is paid by all entrepreneurs applying UTII in 2020, regardless of income.

If the annual imputed income of an individual entrepreneur exceeds 300,000 rubles, then another 1% is paid to the Pension Fund from the amount exceeding the income. The calculation is as follows: (annual imputed income - 300,000) x 1%. Moreover, the calculated amount should not exceed 212,360 rubles.

Consequently, the total maximum amount of insurance contributions to the Pension Fund of Individual Entrepreneurs on UTII is 238,905 rubles, that is, 26,545 + 212,360, and the minimum is 26,545 rubles.

Payment of the fixed part for 2020 is made until 01/09/2019, and 1% - until 04/03/2019.

To make calculations, you need to contact the Pension Fund at the place of registration and receive the relevant details and calculation of 1% (if necessary). The entrepreneur does not submit income reports to the Pension Fund; all information to the funds comes from the Federal Tax Service.

Please note the following point. If an entrepreneur is not an employer, then he has the right to reduce the amount of UTII by the amount of contributions paid to the funds. Moreover, the deduction should not exceed 50% of the UTII amount (clause 2 of Article 346.32 of the Tax Code of the Russian Federation).

If an entrepreneur is not an employer, then he has the right to reduce the amount of UTII by the amount of contributions paid to the funds.

ONLINE CASHES FOR IP ON UTII IN 2020

The news about the obligation to use cash registers from 2020 caused a great stir. Legislation in the field of use of cash registers has changed several times from 2020 to the present. By the beginning of 2020, the legislator had decided and established by Law No. 337-FZ of November 27, 2017, the following: by July 1, 2019, all UTII payers must begin to use online cash registers, with the exception of the following categories of entrepreneurs:

• Individual entrepreneurs providing services or selling goods of their own production without hiring employees.

By introducing a requirement for the mandatory use of online cash registers, the authorities during 2017-2019 allowed entrepreneurs to receive a tax deduction for the purchase of an online cash register.

To use the deduction for the purchase of a cash register it was necessary:

• for individual entrepreneurs on UTII for all types of activities, except retail trade and catering, and for individual entrepreneurs on UTII in retail trade and catering, but without hired labor, register an online cash register with the Federal Tax Service within the period from 02/01/2017 to 07/01/2019;
• for individual entrepreneurs on UTII in the field of retail trade and catering with hired employees, register a cash register within the period from 02/01/2017 to 07/01/2018.

When purchasing an online cash register for UTII, a tax deduction cannot be obtained for the period that preceded the registration of the cash register. The tax amount is reduced when calculated for the tax periods 2020 and 2020, but not earlier than the period in which the device was registered. If the amount of UTII is less than the deduction for the online cash register, then you can transfer the balance to the following periods until the end of 2020.

Unfortunately, the tax service does not plan to extend the right to receive a deduction for 2020 (letter of the Federal Tax Service of Russia dated April 17, 2019 No. ED-4-20 / [email protected] ).

Cancellation of UTII from 2021

From January 1, 2021, Chapter 26.3 of the Tax Code of the Russian Federation will lose force. It is she who now regulates the special tax regime called “UTII” (Law FZ-97 of June 29, 2012). Therefore, it’s time for UTII payers to prepare to choose a different taxation system.

Please note that since 2020, in four regions of the Russian Federation, a new taxation system has appeared for individual entrepreneurs and individuals who do not have individual entrepreneur status - a tax on professional income. In 2020, the new tax regime was in effect in Moscow and the region, Tatarstan and the Kaluga region. In 2020, it may spread to other regions of the Russian Federation. For some current UTII payers, this system may be a good alternative.

In the Compulsory Medical Insurance Fund

The amount of insurance contributions to the Compulsory Medical Insurance Fund is determined as a fixed amount of 5,840 rubles. This amount is paid by all individual entrepreneurs who use UTII, regardless of income; there are no additional calculations here.

Payment for 2020 must be made by 01/09/2019. All necessary details can be obtained from the Pension Fund at the place of registration.

This amount can be included in the deduction for UTII (which we wrote about above), but please note that the deduction, as with the Pension Fund, applies only if the contributions are paid and do not exceed 50% of the UTII amount (clause 2 Article 346.32 of the Tax Code of the Russian Federation).

This might also be useful:

• Combination of simplified tax system and UTII
• Fixed payments of individual entrepreneurs to UTII in 2020
• Activities of individual entrepreneurs in another city or region

• Changes for individual entrepreneurs in 2020
• Changes to the simplified tax system in 2020
• UTII changes in 2020

Is the information useful? Tell your friends and colleagues

Dear readers! The materials on the TBis.ru website are devoted to typical ways to resolve tax and legal issues, but each case is unique.

If you want to find out how to solve your specific issue, please contact the online consultant form. It's fast and free!

Comments

View all Next »

Anastasia 03/04/2015 at 03:45 # Reply

Very useful article. And if you combine class365 with a similar system, you can make your life much easier.

Aina 04/16/2015 at 08:46 pm # Reply

UTII

please tell me, what should I do if the amount on line 010 in section 3 of the declaration (the amount of calculated UTII) is less than the amount on line 030 (the amount of insurance contributions to the pension fund and compulsory medical insurance)? write 0 in line 040??? what if the sum is negative? thanks for the answer

ostapx1 04/17/2015 at 11:45 am # Reply

Yes, you are absolutely right, in your case, in line 040 of section 3 of the UTII declaration, you should write 0. You do not need to pay to the budget for the reporting period.

Venus 05/25/2015 at 08:56 pm # Reply

in March and April there is no profit at all, I am an individual entrepreneur, can I not pay taxes for this period?

Natalia 05/26/2015 at 01:01 pm # Reply

Good afternoon. If an individual entrepreneur is registered as a UTII taxpayer, then the obligation to pay this tax arises regardless of the presence or absence of income. When calculating UTII, the actual number of days of business activity is not taken into account (Article 346.29 of the Tax Code of the Russian Federation). UTII tax is paid not on actual income, but on basic monthly income. Basic monthly income is established by tax laws separately for a specific type of activity. This is the disadvantage of the UTII system when there is no income. But if the income is large, then the plus is that the tax amount will not increase from the amount of income.

Tatyana 09.17.2015 at 16:24 # Reply

Declaration

If an individual entrepreneur conducts two types of activities, then it is necessary to fill out 2 declarations (UTII)?

Natalia 09/18/2015 at 07:28 # Reply

Tatyana, UTII declarations are submitted for each type of activity for which UTII is applied. The UTII declaration is submitted to the tax office to which the application for registration of the payer for UTII was submitted. The location of the inspection where you registered as an individual entrepreneur may differ from the location of the inspection where you registered under UTII. In the first case, you register at the place of permanent or temporary registration, in the second case, at the place of business.

Evgenia 11/09/2015 at 07:54 # Reply

Large amounts of UTII

Good afternoon. We are engaged in cargo transportation. Question: “The use of UTII is not allowed: by taxpayers receiving large incomes.” What large incomes already prohibit the use of UTII?

Natalia 09.11.2015 at 11:11 # Reply

Evgenia, good afternoon. The concept of the largest taxpayer, ed. Order of the Federal Tax Service of the Russian Federation dated September 19, 2014 No. ММВ-7-2/483 - “The total amount of income received must be at least 2 billion rubles per year.”

Roman 01/23/2016 at 05:27 pm # Reply

DIRECTION of the Central Bank of the Russian Federation dated March 11, 2014 N 3210-U makes maintaining a cash book optional for individual entrepreneurs

Natalia 01/24/2016 at 16:02 # Reply

Roman, optional - yes. But many individual entrepreneurs continue to maintain a cash book in order to streamline the flow of cash.

Larisa 06/07/2016 at 16:02 # Reply

Income limit for UTII?

Good afternoon. Tell me if there is a limit on the amount of annual income for UTII payers. If yes, what amount cannot be exceeded?

Natalia 07/07/2016 at 20:18 # Reply

Larisa, the advantage of UTII is that the maximum amount of annual gross income is not limited.

Elena 01/17/2017 at 07:15 # Reply

Hello! I opened a second store. How to calculate the amount of tax for the second store?

Alina 01/17/2017 at 09:09 # Reply

Good afternoon Look here for calculations with examples, including for retail: https://tbis.ru/nalogi/primery-rascheta-envd

Alena 01/26/2017 at 01:50 pm # Reply

UTII and pension contributions

If you are an individual entrepreneur and you do not have employees, then you can reduce the tax amount by the amount of pension contributions (tax - pension contributions = tax balance).

Natalia 03/26/2017 at 08:51 pm # Reply

Alena, good afternoon. In addition to contributions to pension contributions, the UTII tax of individual entrepreneurs without employees can be reduced by contributions for compulsory health insurance.

Svetlana 03.23.2017 at 18:58 # Reply

Registered individual entrepreneur on February 22, 17. Passenger Transportation.

Can I be a UTII payer?

Natalia 03/26/2017 at 08:54 pm # Reply

Svetlana, good evening. You can apply UTII when providing passenger transportation services. The physical indicator is the number of seats.

Pavel 05/05/2017 at 07:09 pm # Reply

Good afternoon. Please tell me, I have UTII, I was paid for services including VAT. Should I show VAT on this amount?

Natalia 05/05/2017 at 21:16 # Reply

Pavel, good evening. If you have issued an invoice highlighting the VAT amount, you are required to pay VAT and submit a VAT return. Moreover, the VAT declaration is submitted only in electronic form.

View all Next »

Zero declaration on UTII: position of the Ministry of Finance and the Federal Tax Service

Let us take a closer look at the position of regulatory and judicial authorities on the issue of submitting a zero declaration for UTII in connection with the reasons stated above.

Activities suspended due to lack of income

If there was no income during the reporting period and for this reason you suspended your activities:

• the declaration will have to be filled out in the usual manner, with all the indicators.
• On its basis, taxes need to be calculated and paid to the budget.

The mere fact of suspension of activity does not relieve you of the obligation to pay tax and submit a UTII declaration (Letters of the Ministry of Finance of the Russian Federation dated 03/19/2015 No. 03-11-11/14987, dated 01/30/2015 No. 03-11-11/3564).