Unified imputed income tax in 2021

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

As it became known from the latest news, the Ministry of Finance refused to extend the special tax regime of taxation in the form of a single tax on imputed income (UTII). What's next for business in 2021?

Basic concepts

UTII was introduced back in 2003. The payer of this tax has the right:

• conduct retail trade;
• provide household services;
• provide veterinary services;
• carry out repair work;
• run a hotel business;
• provide catering services;
• engage in road transport.

Payers of UTII do not need to pay taxes on profits, property, VAT (excluding import). If an individual entrepreneur or an organization paying the single tax on imputed income has employees, then the tax can be reduced by the amount of insurance payments, but not more than 50% of the payment.

Choice of taxation regime

Since there have been major changes in tax legislation and, as the latest news reported, the unified tax on imputed income will cease to operate in 2021, entrepreneurs need to choose a different taxation system.

This issue should be approached thoroughly, since in almost all regimes the transition is allowed only from the beginning of the year. And the submission of an application for a transfer is carried out at the end of the previous year.

When choosing a tax regime, they take into account the type and scope of activity, the presence of hired employees.

IE without employees

If a businessman works for himself, is registered as an individual entrepreneur and does not use the labor of hired workers, a tax on professional income is suitable for him. It is also called the tax on professional income for the self-employed.

An important condition is the type of activity - the self-employed makes a profit from his labor (these are not sales and not activities under a commission agreement).

For example, car mechanics, self-employed drivers may opt for a tax on professional income. And an individual entrepreneur selling products cannot do this, since the activity does not meet the criteria for self-employment. It is suitable for STS, PSN or income tax.

Individual entrepreneur with employees or organization

If there are employees, the businessman cannot pay professional income tax. This also applies to organizations that are also not considered payers of the NAP. They can switch to the following options:

• a simplified system ("Income" - 6%, "Income minus expenses" - 15%);
• patent (6%) - only for individual entrepreneurs with certain types of activities;
• the general system is to pay income tax (20%).

All tax systems have their own advantages and disadvantages. One should not focus on the tax rate, since in addition to it, there are conditions for accepting expenses that reduce the taxable base.

An important parameter is the opinion of regular customers and buyers. For example, some organizations need their customers to use VAT because they can get it back.

Consequences of the cancellation of UTII

Employers are constantly following the latest news. The unified tax on imputed income is in great demand among the owners of shops, car services, hairdressers, pharmacies, veterinary clinics. This change will especially negatively affect them. They will have to choose a different type of taxes, which will significantly reduce profits.

Due to the abolition of UTII, unemployment will increase, prices for goods will rise. Ordinary citizens will have to face this. The consequences will be negative for municipal authorities as well, since this tax was transferred to local budgets.

For example, under OSNO, a large part of the funds will be transferred to the federal treasury. And the income tax is divided between the local and federal budgets. It is difficult to imagine how the regional authorities will fill this gap.

Experts advise to follow the changes, the latest news, do not give in to panic, and continue to operate on the single tax on imputed income as long as there is this opportunity. Already today, businessmen can make calculations and determine profits and expenses under the simplified taxation system or OSNO in order to decide which system to switch to in 2021. It may be necessary to prepare a business development plan.

Summarize

1. From January 1, 2021, UTII will not operate.
2. Individual entrepreneurs and enterprises will need to switch to a different taxation system.
3. The choice of the mode depends on the type of activity of the enterprise.