How to choose the most favorable tax regime for sole proprietors engaged in retail trade of non-food products? What criteria should be considered when choosing between STS ("income") and STS ("income minus expenses")?
In order to choose the most advantageous taxation regime for an individual entrepreneur engaged in the retail sale of non-food products, it is necessary to analyze a number of criteria and features of the two variants of the simplified taxation system (STS):
Criteria for choosing between USN ("Income") and USN ("Income minus expenses")
1. The level of income and profitability
of the USN business ("Income"): It is suitable for businesses with high income levels and low cost relative to revenue. The tax rate is 6% of the total amount of income earned.
USN ("Income minus expenses"): it is more appropriate to apply if the share of expenses is high and accounts for a significant part of income. The tax rate varies from region to region, but most often it is 15% of the difference between income and expenses.
2. Composition and documentary evidence of expenses
To apply the STS ("Income minus expenses"), it is necessary to carefully record and confirm all expenses that affect the reduction of the tax base. It is important to keep strict records of primary documents (invoices, receipts, payment orders).
If accounting is difficult or the number of confirmed expenses is small, it is better to choose the STS ("Income").
3. The possibility to reduce the amount of tax
According to the USN ("Income"), it is possible to reduce the tax by the amount of insurance premiums for oneself and employees, but by a maximum of 50% of the tax amount.
According to the USN ("Income minus expenses"), insurance premiums are included in expenses, reducing the tax base.
4. Restrictions on use
Both schemes are limited by a certain threshold of income and number of employees:
Maximum amount of income: up to 200 million rubles per year.
Number of employees: up to 130 people.
A practical example of tax calculation:
Let's say your annual income was 10 million rubles and your expenses were 6 million rubles.
Calculation according to the USN ("Income"):
The amount of tax=10 000 000×6%=600 000 rubles
Calculation according to the USN ("Income minus expenses"):
Tax amount=(10 000 000-6 000 000)×15%=600,000 rubles
However, if your expenses are lower, the choice becomes obvious. For example, with incomes of 10 million rubles and expenses of 3 million rubles:
USN ("Income"): the tax will amount to 600 thousand rubles.
USN ("Income minus expenses"): the tax will be (10,000,000- 3,000,000)×15%=1,050,000 rubles.
In this example, it is more profitable to choose the USN ("Income"), since the amount of tax is significantly less.
Final recommendation:
Choose the USN ("Income") with a high level of net profit and a low amount of confirmed expenses. Use the USN ("Income minus expenses") if most of your income is spent on the purchase of goods, rental of premises and other expenses, which significantly reduces the tax base.