Why do entrepreneurs apply the single tax on small business?
For individual entrepreneurs that use the unified tax on imputed income, such fee to the budget exempt from the obligation to pay almost all other taxes. But it is worth considering that the use of this type of taxation may not all businessmen, but only those who are engaged in certain activities. For example, work in retail, catering or providing household services.
How to calculate single tax on small business?
To calculate the amount of tax you need to decide on the tax base is the income that is imputed to the businessman. The latter figure depends on many factors:
- the underlying profitability of a particular activity (marked in the Tax code – article 346);
- the number of employees (or building area);
- the coefficient K1 (every year he is established in the normative act of the Ministry of economic development);
- the coefficient K2 (the amount shall be determined at the municipality level).
The formula for calculating imputed income is as follows:
Imputed income*15% (the tax rate on small business). Of this sum it is necessary to deduct insurance premiums.
The rise in the taxes on small business?
Officials of the Ministry of economic development published on the official website the draft order at the designated office. According to this document one of the indicators (factor K1), affecting the taxes on small businesses will increase to 2,083.
Compared to the previous year, the growth of this indicator will amount to almost 16%. For all the time the "work" of the single tax on small businesses this increase in the important ratio to calculate the amount of tax is the most significant.
Now the tax base upon which is calculated the tax on small businesses, will grow by almost 16%. Therefore, businessmen should prepare for a significant increase in the tax burden and it is possible to seek the assistance of specialists, who will suggest ways to reduce it.