How to reduce the tax on paid insurance premiums for entrepreneurs applying special tax regimes

CrimeaPRESS reports:

Entrepreneurs heard the answer to this question at the next webinar under the heading “Tax Hour”, which took place on March 6 in the VKS mode at the Federal Tax Service of Russia in Sevastopol.

Head of the Department of Cameral Control of Special Tax Regimes V.S. Pozhematkina reminded the audience of the event that the current legislation allows individual entrepreneurs using the simplified taxation system or the patent system to reduce the amount of tax (advance tax payments) by the amount of insurance premiums.

She gave practical advice on how to apply for a tax reduction.

V.S. Pozhematkina clarified that taxpayers who do not have employees are entitled to reduce the advance payment for the first quarter of 2023 under the simplified tax system by the entire amount of contributions paid in the first quarter of 2023.

If an entrepreneur transfers money to pay insurance premiums with an indication of the KBK UNP, then to reduce the advance payment under the simplified tax system for the 1st quarter of 2023, you just need to transfer funds in the 1st quarter of 2023 to pay insurance premiums. At the same time, a positive balance of the UNS should be formed, in an amount sufficient to pay contributions. Then, no later than March 31, 2023, it is necessary to submit to the tax authority an Application for offsetting the transferred amount of the ETP towards the fulfillment of the forthcoming obligation to pay fixed insurance premiums. It should be noted that such an application is provided exclusively in electronic form via the TCS or through the Taxpayer’s Personal Account.

Without submitting such an application or payment order, a reduction in the advance payment by the amount of contributions from incomes over 300 thousand rubles will be possible only under the simplified tax system for the third quarter of 2023. Since it is on July 3 of the current year, in the presence of a positive balance of the UNS, the offset against the payment of insurance premiums will be carried out automatically.

If the payment of contributions is carried out by a separate payment order, then in order to reduce the advance payment under the simplified tax system for the 1st quarter of 2023 by the fixed payments of insurance premiums paid in the 1st quarter of 2023, it is necessary to indicate in the payment order the details of the fixed insurance premiums (CSC, reporting period, etc. .). Funds must be received by March 31, 2023.

V.S. Pozhematkina also explained in detail to individual entrepreneurs how to reduce the amount of a patent for paid insurance premiums.

She clarified that in the case of applying the SIT without employees, the taxpayer has the right to reduce the amount of tax on the SIT by the entire amount of fixed contributions paid for himself.

To do this, you must first pay insurance premiums during the period of the patent.

Next, you need to submit a Notice of reduction of SIT. She clarified that the Notice of calculated amounts for fixed insurance premiums is not submitted (clause 9, article 58 of the Tax Code of the Russian Federation).

If an individual entrepreneur using PSN has employees, then the mechanism for reducing the tax on the amount of insurance premiums occurs as follows.

The taxpayer has the right to reduce the PIT tax for 2023 by the insurance premiums paid in 2023 both for himself and for employees. When using the labor of employees in activities on the PSN, the patent tax is reduced by no more than 50 percent.

First, money is paid to the BCC EPP in payment of fixed insurance premiums for 2023. Until 31.03.2023, it is necessary to submit to the tax authority an Application for offsetting the transferred amount of the ETP towards the fulfillment of the forthcoming obligation to pay fixed insurance premiums.

In this case, the Notice of calculated amounts for fixed insurance premiums is not submitted, however, no later than the 25th day of each month, a Notice of calculated amounts in respect of insurance premiums for the previous month paid for employees is submitted.

Deputy Head of the Federal Tax Service of Russia for the city of Sevastopol S.I. Golodenko reminded the audience that in March webinars for Sevastopol taxpayers under the heading «Tax hour» will be held 2 times a week.

Specialists of the Office will explain the most pressing issues of the current procedure for paying taxes and reporting. You can get acquainted with the planned topics for consideration and the planned dates of the events by going to following link.

source: press service of the Federal Tax Service of Russia in Sevastopol