A good word is “vacation”, and “ tax holidays" better. This word promises a period free from study or activity, and in relation to businessmen - temporary relief from the tax burden. But vacations, in their classical sense, are given to those who are already tired of studying or righteous labors, and tax holidays are provided to newcomers who have just completed state registration.

Tax holidays were discussed quite widely; they were also mentioned by the President in. Expectations from their introduction were serious, so we even advised our users to postpone state registration of LLCs and individual entrepreneurs until we received clarity on this issue.

Who can get tax holidays?

However, the much-awaited law did not become a New Year's gift to potential businessmen. Firstly, it turned out that tax holidays were provided only for newly registered individual entrepreneurs, and for LLCs they were not introduced for a reason that was surprising for business, but completely understandable for bureaucrats. Officials simply have not found mechanisms to prevent the mass registration of new companies with the goal of zero taxation.

Registration of individual entrepreneurs is carried out using TIN individual, which does not change throughout its life, so it is easy to track those who de-registered and re-registered to benefit from the tax holiday. But closing an existing company and opening a new one, which will be subject to tax holidays, is simple, because the TIN of organizations is different. Thoughts were expressed to link the possibility of registering one “preferential company” to specific founders, but they did not have time or did not want to develop the corresponding mechanism.

So, we repeat, tax holidays are only available for newly registered individual entrepreneurs. Tax holidays do not apply to entrepreneurs already operating at the time the regional law comes into force.

Secondly, the federal law did not introduce tax holidays throughout the Russian Federation, but only gave the regions the right to introduce them in their own countries. The regions were in no hurry to do this, so as not to lose the expected tax revenues from new individual entrepreneurs. The estimated “shortage” of taxes due to the proposed benefits for Russia as a whole is 250 billion rubles. Within state budget not so much, but for some regional budgets even 1-2 billion rubles is a serious amount. Although, it would seem, what difference does it make - after all, tax holidays do not reduce existing tax revenues, but give residents of the regions the opportunity to open new businesses, get on their feet and then replenish the treasury. But still, a significant part of the regions have introduced zero taxation on their territory for new entrepreneurs.

Thirdly, tax holidays apply to certain types of activities in production, services and scientific activities. Trade is not subject to tax holidays! Each region sets for itself specific types of activities indicating the OKVED code to which this benefit will apply. In addition, local laws may establish other restrictions and requirements for individual entrepreneurs “on vacation.”

Fourthly, tax holidays can only be received by individual entrepreneurs who have chosen the simplified tax system and the special tax system. This benefit does not apply to the imputed regime and OSNO.

Fifthly, although the validity of regional laws on tax holidays is set until the end of 2020, a specific individual entrepreneur can receive them for a maximum of 2 years (the law refers to this as a tax period). Regarding the tax period, you also need to know the following: it also includes the year in which the individual entrepreneur was registered. For example, the law on tax holidays in the Krasnodar Territory came into force on May 8, 2015, which means an entrepreneur who registered after this date can work at a zero rate until the end of this year plus the next year, that is, less than two years.

In total, only individual entrepreneurs who comply with the following requirements can receive a zero tax rate for a period of up to two years:

• those who first passed state registration as an individual entrepreneur after the entry into force of the regional law on tax holidays;
• intending to carry out activities from the list given in the regional law;
• those who have chosen tax simplified tax system mode or PSN and switched to a zero rate immediately after registration.

For the convenience of paying taxes and insurance premiums, we recommend opening a current account. Moreover, now many banks offer profitable terms for opening and maintaining a current account.

What other requirements must individual entrepreneurs operating under tax holidays fulfill?

This list of requirements for beneficiaries is not exhausted; individual entrepreneurs “on vacation” will be monitored, and in case of violations, they will be deprived of the opportunity to use this benefit.

The share of income received by individual entrepreneurs from activities for which tax holidays have been introduced must be at least 70% of all income. If an entrepreneur combined “preferential” types of activities with others, for example, production and trade, and received less than 70% of income from the preferential type of activity, then all his income will be taxed at the regular rate of 6%. Individual entrepreneur who has issued various patents for different types activities, including those that are not included in the regional law, will have to keep separate records of income.

Local laws on tax holidays may set their own income limits for those working on the simplified tax system. So, in 2018, a limit for simplifiers was established, in general case, like 150 million rubles. Regions can reduce this limit, but no more than 10 times. There are also restrictions regarding hired workers. Moscow entrepreneurs, for example, will be able to hire no more than 15 people, and not only on the PSN, but also on the simplified tax system (according to general rule, on a simplified system you can have up to 100 employees).

Individual entrepreneurs operating under the tax holiday regime do not have any benefits when paying insurance premiums for themselves and for their employees. An entrepreneur’s contributions for himself in 2018 are at least 32,385 rubles, and they must be transferred even if there is no income from the business.

The base of regional laws on the introduction of a zero tax rate for new individual entrepreneurs is often updated, in addition, each of them has its own validity period. Current texts can be found on the Ministry of Finance website or in legal reference systems. In addition, you can find out all the details about the zero rate from the Federal Tax Service at your place of registration.

Tax holidays are Grace period time for an entrepreneur when he can charge taxes at a zero rate established by regional laws. The right of regions to introduce tax holidays from 2015 to the end of 2020 is established by Law No. 477-FZ dated December 29, 2014. How individual entrepreneurs can use this opportunity, and what restrictions there are, we will tell you in this material.

Conditions for tax holidays for individual entrepreneurs

Law No. 477-FZ did not approve the introduction of tax holidays everywhere, but only gave regional authorities the opportunity to introduce them on their territory. That is, a region can pass a local law that makes it easier tax burden small business, but may not do this. Although, according to the website of the Ministry of Finance of the Russian Federation, tax holidays in 2017 are already in effect in most constituent entities of the Russian Federation.

Vacations do not apply to organizations; they are possible only for entrepreneurs, but not for everyone. Those of them who already have the status of individual entrepreneurs at the time of adoption of the regional law do not fall under its scope. Only persons registering as individual entrepreneurs for the first time after the adoption of the relevant law in the region can “go on vacation”. These do not include those who have already been registered at least once individual entrepreneur. Registration is carried out using the individual’s unchanged TIN, so the fact that this is not the first time an individual entrepreneur has been created cannot be hidden.

But not all of the newly registered entrepreneurs can take advantage of the right to tax holidays: the types of activities of individual entrepreneurs must relate only to the production, social or scientific sphere. Such a common type of entrepreneurship as trade does not qualify as preferential. Specific types are determined by regional authorities, therefore each region has its own list of preferential benefits. entrepreneurial activity, which is subject to tax holidays. OKVED is the source of codes that these types must comply with.

The possibility of tax holidays is provided only for individual entrepreneurs using “simplified taxation” or a patent. This benefit does not apply to other tax regimes. Tax holidays do not exempt individual entrepreneurs from paying in full insurance premiums for yourself and for employees, as well as from others necessary taxes and fees.

Restrictions and limits “during the holidays”

An entrepreneur can calculate tax under the simplified tax system or PSN at a rate of 0% as long as he complies with the established rules:

• The share of income from preferential activities for which holidays apply must be at least 70% of the total income of individual entrepreneurs - this requirement applies to all regions, according to the law on tax holidays No. 477-FZ. If, in addition to the preferential type of business, an individual entrepreneur also conducts other activities, then he must ensure separate accounting of income.
• Regions can set their own income limits for “simplified” residents during the holidays. The Tax Code of the Russian Federation generally provides for a limit on annual income under the simplified tax system of 150 million rubles, and subjects have the right to reduce it, but no more than 10 times, that is, up to 15 million rubles. (clause 4.1 of article 346.13, clause 4 of article 346.20 of the Tax Code of the Russian Federation).
• It is possible to set a limit on the number of hired personnel. No more than 100 workers are allowed on the simplified tax system, and no more than 15 on the PSN (Articles 346.12 and 346.43 of the Tax Code of the Russian Federation), but this number can also be reduced at the regional level. For example, by introducing tax holidays, Moscow limited the ability for individual entrepreneurs to hire more than 15 people, even on a “simplified” basis (clause 3. Article 1 of Moscow Law No. 10 dated March 18, 2015).

Violation established limits during tax holidays threatens the entrepreneur with the abolition of the zero tariff and recalculation of the tax at the regular rate for the entire period of application of the benefit.

Tax holiday period

The period of validity of regional laws on tax holidays is from 2015 to the end of 2020, but for some it may end earlier. Thus, in the Moscow region, tax holidays for small businesses will end on December 31, 2018 (MoD Law dated February 12, 2009, as amended on April 9, 2015 No. 9/2009-OZ).

An entrepreneur can receive a benefit for only 2 tax periods, but it is a mistake to think that this is equivalent to two years, and here’s why:

The tax period also includes the year of registration of the individual entrepreneur. For example, regional law about tax holidays in St. Petersburg for individual entrepreneurs on the simplified tax system began to operate on 01/01/2016, the individual entrepreneur was registered in July 2016. First taxable period for him will end with the end of 2016, and the second will last throughout 2017, i.e. The individual entrepreneur will be “on vacation” for a total of one and a half years.

For individual entrepreneurs with a patent, tax holidays may be even shorter. The tax period for them is equal to the validity period of the patent, which can range from 1 to 12 months within a calendar year (clause 5 of Article 346.45 of the Tax Code of the Russian Federation). Thus, tax holidays for an individual entrepreneur who acquires a patent with a validity period of, for example, 6 months will end in a maximum of a year, and if the patent period is for 1 month, then the individual entrepreneur’s holiday will end after 2 months.

Tax benefits for entrepreneurs are one of the areas state support. At the start of a business, when it is still unclear whether the business will be profitable, the obligation to pay taxes may be overwhelming.

To help beginning entrepreneurs, the state has developed a program of so-called tax holidays. Individual entrepreneurs who fall under its scope may not pay taxes after registration, but subject to a number of conditions.

Who can get tax holidays

The tax holiday program itself was developed for the period 2015-2020, but a particular entrepreneur can work at a zero rate for no more than two years. Each region establishes benefits for individual entrepreneurs by its own local regulations - laws, regulations, decisions.

It is assumed that due to the introduction of a zero tax rate for beginning businessmen regional budgets During the program period, 250 billion rubles will be missing. Not all subjects of the Russian Federation can agree to such a reduction in tax revenues, so regions received the right to provide benefits for beginners only for certain types of activities.

To receive tax holidays for individual entrepreneurs in 2019, the following conditions must be met.

1. Be a registered individual entrepreneur for the first time. The option of deregistering an already existing individual entrepreneur and re-registering it will not work here. The TIN of an individual does not change throughout his life, therefore tax authorities easily track those who have already had entrepreneurial experience.
2. It is necessary to register an individual entrepreneur after the entry into force of the regional regulatory act. For example, tax holidays in Moscow began to operate on March 18, 2015, and in the Moscow region - on April 9, 2015. But if we talk about today, then in 2019, almost all relevant regulations have already been adopted in the regions. If there are still no tax holidays in some constituent entity of the Russian Federation, then most likely the region has decided not to use its right to reduce the tax rate.
3. The benefit is provided for no more than two tax periods, and this does not always mean two full years. For example, if registration occurred on October 10, 2019, the tax holiday for individual entrepreneurs in 2019 will last only 83 days plus the full year 2020.
4. Zero tax rate valid only in and modes. This means that after registration, the entrepreneur must apply to switch to one of these regimes. If you remain on the main taxation system, or choose the Unified Agricultural Tax, you will have to work on general terms.
5. The types of activities required to work within the tax holiday must relate to production, science or the social sphere. There is no zero rate for trade and some household services.
6. The share of income from activities for which it is established zero rate, must exceed 70% of all income of the individual entrepreneur. For example, if an individual entrepreneur combines “preferential” production with trade, and his income from the first type of activity is only 60%, then all income will be taxed at the usual rate of 6%.
7. Regional regulations may establish additional restrictions on the ability to work at a zero rate. Thus, in 2019, in general, there is an annual income limit for the simplified tax system equal to 150 million rubles. Regions have the right to reduce this limit to 15 million rubles. The restriction may also apply to the number of employees, for example, in Moscow, an individual entrepreneur working within the framework of tax holidays has the right to have no more than 15 employees.
8. The transition to tax holidays does not relieve the entrepreneur from the obligation to pay for himself insurance premiums in full.

Find out about regional normative act, which indicates the terms of the holidays, can be found on the Federal Tax Service website, in the economic department local administration or in tax office. Let us use the example of the Moscow law to show which types of activities are subject to the zero rate.

Types of activities for tax holidays in Moscow

The list of activities that are subject to tax holidays was approved by Moscow Law No. 10 of March 18, 2015. This is a fairly extensive list of areas provided separately for the simplified tax system and the special tax service.

Zero rate on a simplified tax system

Zero rate on the patent tax system

How to switch to tax holidays

There is no special procedure for switching to tax holidays for start-up entrepreneurs. The fact that the individual entrepreneur works at a zero rate is indicated in the application for the transition to a patent or in annual declaration according to the simplified tax system.

To avoid confusion, we recommend that future entrepreneurs seek advice from their tax office before doing so. It is necessary to clarify whether the proposed activity fits within the scope of tax holidays, and what restrictions are established by regional regulations.

If all conditions are met, the entrepreneur will receive a patent, which will indicate that the cost of the patent is zero. Well, those who have chosen the simplified tax system will simply not pay advance payments and taxes at the end of the year. But, we repeat, to reduce the risk of tax disputes, it is worth consulting in advance with the local Federal Tax Service about the possibility of working at a zero rate in your particular case.

In order to develop entrepreneurship and support it at the initial stage of development, tax holidays are provided, according to which new registered individual entrepreneurs may not pay tax, which is the main one for tax regime, which is chosen by the entrepreneur, due to the application of the 0% rate. In this article we will look at how tax holidays are provided for individual entrepreneurs and for what periods.

At the same time, the individual entrepreneur retains other tax obligations - payment on a general basis of tax on the income of employees, land, transport, if there are relevant objects subject to these types of tax. There is also still a need to implement mandatory insurance deductions for hired persons, if their labor is used by an entrepreneur, as well as for themselves. Tax holidays apply only to the main tax of the regime.

To exercise this right, established by law 477-FZ dated 12/29/14, those entrepreneurs who meet a number of criteria can. Tax holidays are available only for individual entrepreneurs. If registered entity, then tax exemption is not provided, including situations where the formed organization is very small and meets the criteria of small enterprises.

Conditions for applying tax holidays

An individual who has formed an individual entrepreneur may not transfer the main tax of the regime for 2 tax periods if the following criteria are simultaneously met:

1. A citizen registers a business for the first time. If an existing individual entrepreneur closes his current business and is deregistered, after which he registers again with the tax authorities, then he will not receive the right to vacation again, since the condition for the initial formation of an individual entrepreneur has been violated. Also, individuals who were former individual entrepreneurs do not have this right, since registration of a new business will be repeated for this citizen;
2. The procedure for creating an individual entrepreneur was carried out after the approval of the legislative act of the regional authorities on the introduction of holidays in the constituent entities of the Russian Federation. If the region has not provided for such relaxations for entrepreneurs, and has not prepared and approved the corresponding law, then individual entrepreneurs do not have an exemption from the basic tax;
3. The individual entrepreneur chose a patent or simplified regime to conduct business. Read also the article: → “”. In this case, the zero rate applies to a special tax under the simplified tax system or a tax for a patent. If an individual entrepreneur chooses a simplified regime, then tax holidays are available regardless of the selected taxable object. In the case of an income-expenditure object, the entrepreneur is also exempt from transferring the minimum tax that an individual entrepreneur must pay in the amount of one percent of income if his profit is zero or negative;
4. The entrepreneur's field of activity must relate to the scientific, social or industrial sphere;
5. The share of income of a simplified individual entrepreneur from activities for which tax holidays are available must be equal to or exceed 70% of total income;
6. There is no limit on the number of people hired by law 477-FZ, but regions have the right to limit the number of personnel to apply the benefit. This condition is prescribed in the law, on the basis of which a grace period for paying taxes is introduced for individual entrepreneurs;
7. The law also does not establish a limit on the amount of income; the right to regulate the maximum level for revenue from preferential activities is granted Russian subjects. It is not permissible to set an income limit for “simplified people”, reduced by more than 10 times relative to the value limit amount income prescribed in clause 4 of Article 346.13 of the Tax Code of the Russian Federation

Only if each of the specified conditions is met, it is possible to count on receiving a tax holiday in the form of no tax accrued for the first two periods recognized as tax.

The Tax Code of the Russian Federation does not provide for the need to notify the tax office about the use of the right to tax holidays.

Vacation period for individual entrepreneurs

An individual entrepreneur may not pay tax for two tax periods from the moment of formation of the individual entrepreneur. For the “simplified” one, the calendar year is taken as such a period. If an individual entrepreneur is registered during the year, then he may not pay tax for this year, and also for the next one. In fact, the duration of his vacation will be less than two years. That is why, in order to make full use of the benefits, it is more profitable to register an individual entrepreneur at the beginning of the calendar year.

Individual entrepreneurs on PSN also have the right not to pay tax for two tax periods. However, under the patent regime, the duration of this period may be less than 12 months, however, specified rule remains subject to a two-calendar year limitation. The most profitable option is when the patent is obtained for one year; in this case, the entrepreneur uses the entire vacation period. If the patent is acquired for a shorter period, then it is considered a tax period. Read also the article: → “”. In such a situation, its effect will terminate before the end of the allotted maximum vacation period, the remaining unused part of the two calendar years disappears.

Law 477-FZ establishes that the time for using tax holidays should be from the beginning of 2015. until the end of 2020

Do I need to keep records of income and expenses?

Despite the absence of the need to pay the main tax, individual entrepreneurs still need to take into account income and expense indicators. First of all, they will be useful for determining compliance with the criteria for using preferential conditions in terms of income.

Also, accounting for expenses and income will be useful if an individual entrepreneur loses the right to vacation due to violation of established conditions. In this case, it will be necessary to calculate and charge tax according to standard rules for the entire tax period when the violation was committed. If the individual entrepreneur did not keep the required minimum records, then the indicators will have to be restored for the entire period of the vacation.

Loss of right to benefit

A situation is possible when an entrepreneur at the time of formation of an individual entrepreneur met the necessary criteria for applying tax holidays, but in the course of his activities he lost this right due to the violation of some condition. For example, the share of income from preferential lines of business as a part of total income has decreased. In this case, the individual entrepreneur can no longer use preferential terms and is obliged to calculate and pay tax for the entire tax period when the violation was committed.

If such a situation arose in the first period of application of tax holidays, then you will have to pay the simplified tax system or patent tax for this entire period. Read also the article: → “”. If in the next period the individual entrepreneur again meets the criteria for applying the benefit, then he will not have the right to a tax holiday, since this benefit is possible only with its continuous use over 2 tax periods.

If the right to tax holidays is lost in the first tax period, it will not be possible to restore it in the next one, since the condition for the continuity of application of the benefit over 2 tax periods is violated. If the violation was committed in the second tax period, then the tax will need to be calculated and paid for this period; there will be no need to charge tax for the first tax period, since all the necessary conditions of the preferential tax rules were met.

Types of activities for tax holidays

Law 477-FZ establishes that an entrepreneur’s business must be suitable for production, scientific or social sphere. The law does not contain a specific list.

Subjects of the Russian Federation, establishing tax holidays on their territory, limit the list of preferential areas, guided by the requirements of Law 477-FZ and the OKUN and OKVED classifiers. Depending on the situation, an entrepreneur needs to carefully study the legislative acts of local authorities to clarify the presence of the right to tax holidays. As a rule, a specific list of areas of activity is prescribed, as well as details of the classifier according to which they are defined.

If you have doubts about the presence of tax holidays when conducting a certain type of activity, you can contact Rosstat or Rosstandart for clarification.

Tax holidays in the regions

The above federal law established the right of the constituent entities of the Russian Federation to introduce preferential working conditions for beginning entrepreneurs on their territory, but this is not their responsibility. Regional authorities independently decide whether tax holidays are necessary in the territory. At positive decision a corresponding legislative document is adopted that defines the conditions for using the benefit.

When registering, an entrepreneur should check whether the local authorities have introduced a grace period. If such a law exists, it is posted on the official website of the regional Duma. Regional authorities have the right to determine a list of areas of activity, upon registration of which the individual entrepreneur will be temporarily exempt from tax liability under simplified or patent tax. Regions may limit the amount of income from preferential activities, as well as the number of employees.

Examples of introducing tax holidays in the regions