Taxation of small business

The government seeks to improveeconomic situation in the country. This is facilitated by the development of small and medium-sized businesses. With a view to facilitating the formation and functioning of small-scale and large-scale enterprises, a special system for taxing small businesses is envisaged.

In the framework of assistance to small businessesthe authorized state body provides an opportunity to choose one of the three existing methods of calculating and collecting mandatory amounts to the budget and non-budgetary bodies. So, a legal entity can use a standard and simplified system, as well as taxation of imputed income. Russian legislation divides all existing methods into two groups:

1. General tax collection system
2. Special tax collection system

An entrepreneur or an organization has the rightindependently decide on the choice of a particular regime. Taxation of small business, acting as a simplified system, must be supported by the desire of a legal entity in the form of an application that is submitted to the tax service.

If documented is not confirmed usea special system, then the common or traditional is automatically applied. Under this system, companies are obliged to provide periodic reporting, which fully discloses all expenditures incurred and the proceeds from the sale of finished products. The main taxes that must be paid to the state are:

• VAT
• Tax on profits and property of a legal entity. An exception is a form such as individual entrepreneurship.
• Personal income tax

Special taxation for small businessesinvolves the payment of a single tax, which includes a list of several of their types, depending on a particular type of activity. For example, in the agro-industrial sector, ECA is paid, that is, a single agricultural tax. In this case, it can only be levied on enterprises that are engaged in the direct production of new products, rather than selling them or reselling them at higher prices. Thanks to the ECN, organizations do not need to pay income tax, either on profits, property tax of organizations or individuals and, of course, VAT (value added tax).

State support of small businessis aimed at the organization of special conditions, within which it becomes easier for institutions to fulfill their mission. Taxation of small business on the basis of a simplified system is carried out only at the request of a legal entity.

The object of taxation is theThe income or income of the organization, less the costs incurred. The tax is calculated using the product of the established interest rate and the object. The rate is differentiated and depends on the amount of profit received for each reporting period. As a rule, it ranges from 5 to 15 percent.

Transition to another system can occur only after submitting an application to the tax authority and at the end of the calendar year.

Taxation of small business for individualentrepreneurs is carried out through payment of a patent (a document that gives the right to carry out their own activities). There is a specific list of certain activities, which includes 69 titles.

In this area, there is a provision for benefits in the form ofdeductions of insurance amounts and pension contributions. The duration of the patent can be from several months to a year. That is why the tax service provides an opportunity to choose another system at the beginning of each month.