You will need
- The tax Code of the Russian Federation
Instruction
1
Examine the tax system that may apply when performing their activities of individual entrepreneur. Each system has its own characteristics, the timing of taxes and the reporting format. The entrepreneur has the right to choose the system of taxation and reporting.
2
Consider use of a General taxation system (GTS). Under this system, individual entrepreneur pays all the necessary taxes and fees, if it is not exempt on the relevant grounds. Usually this mode is used for relatively large enterprises.
Most of the taxes and contributions provided for by the General taxation system, are accrued and paid only under the condition that the enterprise engaged in a specific activity and this raises the tax base. Traditionally, individual entrepreneurs must calculate and pay the value added tax (VAT), the tax to incomes of physical persons (personal income tax), property tax, insurance contributions to the Pension Fund, Territorial Fund of Obligatory Medical Insurance, Federal Fund of Obligatory Medical Insurance.
Most of the taxes and contributions provided for by the General taxation system, are accrued and paid only under the condition that the enterprise engaged in a specific activity and this raises the tax base. Traditionally, individual entrepreneurs must calculate and pay the value added tax (VAT), the tax to incomes of physical persons (personal income tax), property tax, insurance contributions to the Pension Fund, Territorial Fund of Obligatory Medical Insurance, Federal Fund of Obligatory Medical Insurance.
3
The following is the simplified tax system (STS). Its application is voluntary. As a sole trader, you are free in deciding on the application of the simplified tax system and the tax regime.
4
If you chose simplified system of taxation, accept the obligation to pay the single tax and exempt from the duty to pay:
- value added tax, except for VAT payable when goods are imported into the customs territory of Russia and the VAT paid in accordance with article 174.1 of the Tax Code.
- the tax to incomes of physical persons (concerning the incomes received from enterprise activity) with the exception of tax paid on income taxable at the tax rates specified by the PP. 2,4,5 article 224 of the tax code.
- tax on property of physical persons (concerning the property used for entrepreneurial activity).
- value added tax, except for VAT payable when goods are imported into the customs territory of Russia and the VAT paid in accordance with article 174.1 of the Tax Code.
- the tax to incomes of physical persons (concerning the incomes received from enterprise activity) with the exception of tax paid on income taxable at the tax rates specified by the PP. 2,4,5 article 224 of the tax code.
- tax on property of physical persons (concerning the property used for entrepreneurial activity).
5
Choosing the simplified taxation system make sure that the selected activity is not among those for which it is forbidden to use USN. A list of these types is given in article 346 paragraph 2 of the second part of the tax code.
6
For certain types of activities established in a particular region, it is possible to use a special mode, namely the USN based on the patent. This region fixes the value of a patent, and you as the owner pay it in installments over the term of the patent. A patent is granted for a period of up to one year. Under this system of taxation you will keep book of income and expenditure, but the Declaration of the pass are not required. Possible hiring of employees (no more than five people a year). A patent is only valid in the territory where it was issued.
7
If you begin activity as an individual entrepreneur, choose one of the types of the simplified tax system. With the exception of such activities as wholesale trade, or the need to transfer customers invoices for VAT refund from the budget.
