Small businesses in Russia, despite the legislative efforts made by the state, unfortunately do not experience a sense of real support. The problem here is not only that at the local level many government initiatives are fading away. Entrepreneurs themselves also lack legal literacy, which allows them to receive tax preferences, including tax holidays for small businesses…

Therefore, only one out of ten beginning businessmen understands what tax holidays are in principle, what types of activities fall under tax holidays, and how tax holidays can be secured for themselves in 2019. This article was written to answer all questions about tax holidays for individual entrepreneurs in 2019.

Tax holidays for individual entrepreneurs as they are: 5 important facts

Details about the timing of tax holidays for individual entrepreneurs

All of the above points indicate that the 2019 tax holiday is more a myth than a reality. However, to use sports terminology, “until the last game is lost, the game is not lost,” and, therefore, it is necessary to fully use the opportunities that the state provides. Moreover, statistics show an increase in the number of individual entrepreneurs going on vacation.

▼ Calculate the most favorable tariff for an individual entrepreneur's current account
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Move the “sliders”, expand and select “Additional conditions” so that the Calculator will select for you the optimal offer for opening a current account. Leave a request and the bank manager will call you back: he will advise you on the tariff and reserve a current account.

A useful video on the topic will help you understand the intricacies of Tax Holidays:

How to get tax holidays for individual entrepreneurs in 2019?

Conditions for tax holidays for individual entrepreneurs from the Federal Tax Service

The action plan of a beginning individual entrepreneur should be as follows:

Remember that the duration of the holiday is the first two tax periods in a row (continuously) from the moment of registration or transition to the simplified tax system (patent). Therefore, it is better to “go away for the holidays” from January 2019. Then you will get two full years (2019 and 2020) at a zero rate.

You can find out about tax holidays in the regions on the official website of a particular region.
If you have any questions on the topic, please ask them in the comments to the article.

Tax holidays for individual entrepreneurs in 2019 updated: April 12, 2019 by: Everything for individual entrepreneurs

Tax holidays have appeared in our country since 2015.

Their goal was to encourage entrepreneurs to open their own businesses in difficult times of crisis and to bring illegal businessmen out of the shadows.

But this benefit has its own criteria. Who can count on tax holidays, and do they apply to all areas of business?

Definition of concepts. Legislative regulation of the issue

Tax holidays appeared on January 1, 2015. At the legislative level, this concept was enshrined in Federal Law N 477-FZ. Tax holidays are a period of benefit for entrepreneurs, during which they are exempt from paying taxes.

This system has its advantages and disadvantages.

On the positive side Tax benefits include the following:

Among shortcomings The following programs can be distinguished:

1. Restrictions on the categories of entrepreneurs and activities that are eligible to receive tax benefits. For example, businessmen engaged in trade cannot count on benefits.
2. Local authorities regulate the provisions for the provision of benefits and prescribe the conditions for compliance.
3. The validity period is two calendar years, but in the end it turns out that the entrepreneur enjoys benefits for a shorter period of time.

What areas of business activity does the benefit apply to?

Activities that are eligible for zero tax are strictly regulated by law.

It can be spheres:

• scientific;
• social;
• production.

Which small business entrepreneurs can take advantage of tax deferment?

Tax holidays are only available to those entrepreneurs who are registered for the first time.

Each registration of an individual entrepreneur is carried out in connection with the businessman’s tax identification number. It is thanks to this that the tax service can easily track whether a person previously had an individual entrepreneur or not. Therefore, an attempt to close the old case and open a new one in order to receive benefits will not succeed.

the federal law did not provide holidays mandatory for all regions. Each subject is given the right to introduce the system on time at its own discretion.

In addition, entrepreneurs who are engaged in trade. For other types of activities, each region compiles its own list.

In order to qualify for tax holidays, the entrepreneur is obliged comply with the following conditions:

1. The profit percentage must be at least 70% of income.
2. Limits have been established for individual entrepreneurs operating under a simplified system.
3. There are restrictions on the number of hired workers.

Which tax regimes are subject to zero tax?

Tax holidays can be applied to businessmen who work as under simplified and patent taxation system.

To apply for a benefit, a businessman, when registering with the tax office, must, on the day of registration apply for a patent. If an entrepreneur decides to work under a simplified system, he is obliged to notify the control authorities about this within a month from the date of registration.

If an individual entrepreneur works under UTII or OSNO, it will not be possible to receive benefits.

Validity

Tax holidays have been introduced until 2020.

They spread their action in the first two years of work entrepreneurs. The tax period is established in accordance with the Tax Code of the Russian Federation. This means that if an entrepreneur registered in November, then his calendar year will still end on December 31st. Therefore, it is best to start a business at the beginning of the year. This will make it possible to enjoy benefits for much longer.

For entrepreneurs who work according to patent tax system, the benefit is valid for two calendar years. The tax period in this case is the validity period of the patent. If it is less than a year, then the vacation period will end earlier than can be established. This type is unfavorable for patents with a short term.

What payments will still have to be paid?

During tax holidays, entrepreneur not exempt from all taxes. Individual entrepreneurs are not exempt from property duties and payments for each employee. Holidays do not apply to insurance premiums for employees and the entrepreneur himself.

Thus, during the tax holiday period, taxes on UTII, trade tax and property taxes on individuals and legal entities must be paid.

Regional features of provision

Tax holidays for entrepreneurs are in effect differently in different areas. One of the very first regions to adopt the law was the Penza region.

Penza region

If IP in the Penza region works simplified , then his activities should be related to:

At patent system Businessmen who provide repair services for shoes, radio equipment, and clothing will be able to take advantage of the benefit. Each subject establishes its own lists of activities. You can always obtain information about the complete list from the tax office.

Sverdlovsk region

In 2015 Sverdlovsk region joined the entities providing entrepreneurs with zero tax rates.

To this end, two laws were adopted at the local level. 31 types of activities are taxed under simplified taxation and 15 under patent taxation at a rate of 0%.

Moscow and St. Petersburg

IN Moscow The legislative act was adopted on March 25, 2015. To receive benefits, entrepreneurs must meet the following conditions:

1. The number of employees should not exceed 15 people.
2. Under the simplified system, tax holidays apply to entrepreneurs who work in the following areas: education, healthcare, scientific development, social services. The manufacturing sector includes all those involved in toys, clothing, food, appliances, medical supplies, machinery, and leather goods.
3. For the patent taxation system, the following types of activities are distinguished: repairing, sewing and painting shoes, repairing leather, fur, repairing household appliances at home, childcare, translations, printing activities, excursions.

Tax benefits for individual entrepreneurs in the city St. Petersburg started operating in 2016. For entrepreneurs, there is a maximum revenue limit of 30 million rubles. For those who work under a simplified taxation system, benefits apply in the following areas:

For the patent system, the list of activities is the same as in Moscow, but the production of dairy products and bread baking is also added.

Stavropol region

Authorities Stavropol Territory do not establish additional requirements for entrepreneurs.

At the level of local legislation, a list of areas of activity was adopted for both the patent and simplified taxation systems. The services of cooks at home and sports training have been added to the patent IP.

Crimea

We will separately highlight tax benefits in the Republic of Crimea. To attract investors, the Republic practices two-year benefits on property, land and transport.

But this applies only to investors; tax holidays have not yet been introduced for individual entrepreneurs in Crimea.

Take advantage some tips to make the most of the tax holiday:

1. Entrepreneurs of both the patent and simplified taxation systems, engaged in activities in the domestic, social and scientific spheres, can take advantage of tax holidays. Please pay attention to the holiday period! They last for two years, according to the tax service. To get the maximum benefit, do not open a sole proprietorship at the end of the year.
2. An entrepreneur can take advantage of tax holidays only once in his life. If he closes his individual entrepreneur and opens a new one in order to receive benefits, he will not succeed.
3. Do not forget that an entrepreneur is not exempt from paying insurance premiums, property taxes and wages during the tax holiday.
4. Despite the fact that under the simplified system you do not need to pay tax, the declaration must be submitted annually.

The rules for providing tax holidays for entrepreneurs are described in the following video:

Good afternoon, dear individual entrepreneurs!

Many people open individual entrepreneurs in the hope of receiving the so-called “tax holidays,” which were introduced back in 2015. Someone somewhere heard something =), and then they are terribly surprised when they are denied this benefit.

Let me note right away that the idea of ​​tax holidays is really very good. But, as always, there are many nuances that you need to keep in mind in order to get this tax break.

So, let’s take a brief look at this topic of concern to many in the “Question-Answer” format for 2018-2020. By the way, you can watch my video on this topic, or read the text version below:

1. Who can receive tax holidays in 2018-2020?

It is necessary that the following conditions for individual entrepreneurs be simultaneously met:

1. IP in your name must open for the first time. That is, if you close your current individual entrepreneur, and in good faith come for the right benefit, like a newly opened individual entrepreneur, then you will be denied. That is, This benefit applies only to those who register as individual entrepreneurs for the first time. Moreover, no more than two years have passed since the registration of the individual entrepreneur, and the registration itself took place AFTER the entry into force of the REGIONAL law on tax holidays.
2. You must work in one of these three areas: industrial, social, scientific.
3. Moreover, the share of such activities should be NOT LESS THAN 70% of the total income of the individual entrepreneur.
4. In your region a local law must be passed, which allows tax holidays.

Moreover, regional authorities may introduce the following restrictions:

1. By number of employees;
2. According to the maximum income per year;
3. They will prescribe specific activity codes according to OKVED, which are subject to tax holidays.

Thus, an individual entrepreneur who wants to receive a tax holiday must carefully study local laws to understand whether his activities qualify for this benefit or not.

You should also find out from local laws which specific OKVED codes fall under this benefit. They must be clearly defined, since the concepts of scientific, industrial or social sphere can be taken to mean almost any type of entrepreneurial activity =)

All this can be found out at your tax office, where you registered as an individual entrepreneur.

2. Have tax holidays been introduced in all regions of Russia?

No, not in all of them. The fact is that this benefit is left to the discretion of local authorities. And these holidays are not yet in effect in all regions of the Russian Federation. But in Moscow they have already been introduced:

In order for them to be introduced in your region, local authorities must first pass a law (clause 4 of Article 346.20 and clause 3 of Article 346.50 of the Tax Code of the Russian Federation, Federal Law No. 477-FZ of December 29, 2014).

Important: You can count on tax holidays only if you have opened AFTER the entry into force of the relevant REGIONAL law.

Naturally, if an entrepreneur is “tied” to the tax office by registration, then benefits must be expected and claimed in the region where the future individual entrepreneur is registered. And not where he will operate.

How can I find out if there are holidays in my area?

The easiest way is to call the Federal Tax Service hotline.

There is now a toll-free line from the Federal Tax Service, where your questions will be answered:

Which individual entrepreneur taxation systems will be covered by the holiday?

1. Individual entrepreneur on the simplified taxation system (Simplified or simplified taxation system)
2. Individual entrepreneur on PSN (Patent taxation system)

Other taxation systems are not specified in the law, which means they cannot count on this benefit.

What happens if I go beyond the tax holiday limits?

A reasonable question. Indeed, you will immediately lose this benefit as soon as you violate one of the conditions given above. If an individual entrepreneur loses the right to apply a zero rate, then according to:

In case of violation of restrictions on the application of a tax rate of 0 percent established by this chapter and the law of a constituent entity of the Russian Federation, an individual entrepreneur is considered to have lost the right to apply it and is obliged to pay tax at the tax rates provided for in paragraph 1, 2 or 3 of this article for the tax period in which these restrictions are violated. (Clause 4 introduced by Federal Law dated December 29, 2014 N 477-FZ)

That is, if your benefit is considered invalid, then pay taxes for the entire period when it was declared invalid for you as an individual entrepreneur.

And paragraphs 1,2,3 read verbatim as follows:

1. If the object of taxation is income, the tax rate is set at 6 percent. 2. If the object of taxation is income reduced by the amount of expenses, the tax rate is set at 15 percent. The laws of the constituent entities of the Russian Federation may establish differentiated tax rates ranging from 5 to 15 percent, depending on the categories of taxpayers. (as amended by Federal Law No. 224-FZ of November 26, 2008) 3. By the laws of the Republic of Crimea and the federal city of Sevastopol, the tax rate can be reduced in the territories of the relevant constituent entities of the Russian Federation for all or certain categories of taxpayers. For the periods 2015-2016, the tax rate can be reduced to 0 percent. For the periods 2017 - 2021, the tax rate can be reduced: - to 4 percent if the object of taxation is income; - up to 10 percent if the object of taxation is income reduced by the amount of expenses. At the same time, tax rates cannot be lower than 3 percent and can be differentiated depending on the categories of taxpayers. Tax rates established in accordance with this paragraph by the laws of the Republic of Crimea and the federal city of Sevastopol cannot be increased during the periods specified in this paragraph, starting from the tax period from which the reduced tax rate is applied. (Clause 3 introduced by Federal Law dated November 29, 2014 N 379-FZ)

How long will the holidays last?

From January 1, 2015 to December 31, 2020. That is, you can count on another three years of this benefit. To be precise, they will be in effect in 2018, 2019 and 2020. But for a particular individual entrepreneur, tax holidays can last no more than two tax periods from the date of registration as an individual entrepreneur.

Maybe they will be extended after 2020, but at the moment there are no such prerequisites. Follow the blog updates, if anything changes, I will write about it.

What about contributions to the Pension Fund? Do they need to be paid?

Yes need.

It is a big mistake to think that if an individual entrepreneur is on vacation, then there is no need to pay mandatory contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and for your employees). Need to.

Let me emphasize once again that this is a tax benefit under the simplified tax system (or PSN). And contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund do not apply to taxes.

Do you need to submit reports?

Necessarily. Even if you have zero reporting, you need to submit it. And I repeat once again that tax holidays for individual entrepreneurs do not mean that reporting can be completely ignored.

Pay all contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund (for yourself and your employees), submit reports. Everything is as usual.

How do you even get this benefit? Do I need to write some kind of statement?

Good question. Since tax holidays are introduced at the regional level, you need to contact your tax office for information on such issues. Let me remind you once again that this is an inspection that is “linked” to the registration address in your passport.

To summarize:

1. You should clarify the question of whether tax holidays apply in your region;
2. Find out the specific OKVED codes that fall under this benefit;
3. Your individual entrepreneur must be on the simplified tax system or PSN;
4. You must comply with all restrictions prescribed by law;
5. Submit all tax returns, despite the fact that they will be zero.

Well, there may be other nuances that may arise during your work.

P.S. If you have additions to this information, you can write them below.

Other important changes for 2017 for individual entrepreneurs:

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Dear readers!

A detailed step-by-step guide to opening an individual entrepreneur in 2019 is ready. This e-book is intended primarily for beginners who want to open an individual entrepreneur and work for themselves.

This is what it's called:

"How to open an individual entrepreneur in 2019? Step-by-step instructions for beginners"

From this manual you will learn:

1. How to properly prepare documents for opening an individual entrepreneur?
2. Selecting OKVED codes for individual entrepreneurs
3. Choosing a tax system for individual entrepreneurs (brief overview)
4. I will answer many related questions
5. Which supervisory authorities need to be notified after opening an individual entrepreneur?
6. All examples are for 2019
7. And much more!

Dear entrepreneurs!

A new electronic book on taxes and insurance contributions for individual entrepreneurs on the simplified tax system of 6% without employees is ready for 2019:

"What taxes and insurance premiums does an individual entrepreneur pay under the simplified tax system of 6% without employees in 2019?"

The book covers:

1. Questions about how, how much and when to pay taxes and insurance premiums in 2019?
2. Examples for calculating taxes and insurance premiums “for yourself”
3. A calendar of payments for taxes and insurance premiums is provided
4. Frequent mistakes and answers to many other questions!

Dear readers, a new e-book for individual entrepreneurs is ready for 2019:

"IP on the simplified tax system 6% WITHOUT Income and Employees: What Taxes and Insurance Contributions must be paid in 2019?"

This is an e-book for individual entrepreneurs on the simplified tax system of 6% without employees who have NO income in 2019. Written based on numerous questions from individual entrepreneurs who have zero income and do not know how, where and how much to pay taxes and insurance premiums.

“Holidays” is a good word, but “tax holidays” is even better. This word promises a period free from study or activity, and in relation to businessmen - temporary relief from the tax burden. But vacations, in their classical sense, are given to those who are already tired of studying or righteous labors, and tax holidays are provided to newcomers who have just passed state registration.

Tax holidays were discussed quite widely; they were also mentioned by the President in. Expectations from their introduction were serious, so we even advised our users to postpone state registration of LLCs and individual entrepreneurs until we received clarity on this issue.

Who can get tax holidays?

However, the much-awaited law did not become a New Year's gift to potential businessmen. Firstly, it turned out that tax holidays were provided only for newly registered individual entrepreneurs, and for LLCs they were not introduced for a reason that was surprising for business, but completely understandable for bureaucrats. Officials simply have not found mechanisms to prevent the mass registration of new companies with the goal of zero taxation.

Registration of individual entrepreneurs is carried out using the individual’s tax identification number, which does not change throughout his life, so it is easy to track those who de-registered and registered again in order to be subject to tax holidays. But closing an existing company and opening a new one, which will be subject to tax holidays, is simple, because the TIN of organizations is different. Thoughts were expressed to link the possibility of registering one “preferential company” to specific founders, but they did not have time or did not want to develop the corresponding mechanism.

So, we repeat, tax holidays are only available for newly registered individual entrepreneurs. Tax holidays do not apply to entrepreneurs already operating at the time the regional law comes into force.

Secondly, the federal law did not introduce tax holidays throughout the Russian Federation, but only gave the regions the right to introduce them. The regions were in no hurry to do this, so as not to lose the expected tax revenues from new individual entrepreneurs. The estimated “shortage” of taxes due to the proposed benefits for Russia as a whole is 250 billion rubles. There is not so much within the state budget, but for some regional budgets even 1-2 billion rubles is a serious amount. Although, it would seem, what difference does it make - after all, tax holidays do not reduce existing tax revenues, but give residents of the regions the opportunity to open new businesses, get on their feet and then replenish the treasury. But still, a significant part of the regions have introduced zero taxation on their territory for new entrepreneurs.

Thirdly, tax holidays apply to certain types of activities in production, services and scientific activities. Trade is not subject to tax holidays! Each region sets for itself specific types of activities indicating the OKVED code to which this benefit will apply. In addition, local laws may establish other restrictions and requirements for individual entrepreneurs “on vacation.”

Fourthly, tax holidays can only be received by individual entrepreneurs who have chosen the simplified tax system and the special tax system. This benefit does not apply to the imputed regime and OSNO.

Fifthly, although the validity of regional laws on tax holidays is set until the end of 2020, a specific individual entrepreneur can receive them for a maximum of 2 years (the law refers to this as a tax period). Regarding the tax period, you also need to know the following: it also includes the year in which the individual entrepreneur was registered. For example, the law on tax holidays in the Krasnodar Territory came into force on May 8, 2015, which means an entrepreneur who registered after this date can work at a zero rate until the end of this year plus the next year, that is, less than two years.

In total, only individual entrepreneurs who comply with the following requirements can receive a zero tax rate for a period of up to two years:

• those who first passed state registration as an individual entrepreneur after the entry into force of the regional law on tax holidays;
• intending to carry out activities from the list given in the regional law;
• those who have chosen the tax regime of the simplified tax system or PSN and switched to a zero rate immediately after registration.

For the convenience of paying taxes and insurance premiums, we recommend opening a current account. Moreover, now many banks offer favorable conditions for opening and maintaining a current account.

What other requirements must individual entrepreneurs operating under tax holidays fulfill?

This list of requirements for beneficiaries is not exhausted; individual entrepreneurs “on vacation” will be monitored, and in case of violations, they will be deprived of the opportunity to use this benefit.

The share of income received by individual entrepreneurs from activities for which tax holidays have been introduced must be at least 70% of all income. If an entrepreneur combined “preferential” types of activities with others, for example, production and trade, and received less than 70% of income from the preferential type of activity, then all his income will be taxed at the regular rate of 6%. An individual entrepreneur who has issued different patents for different types of activities, including those that are not included in the regional law, will have to keep separate records of income.

Local laws on tax holidays may set their own income limits for those working on the simplified tax system. So, in 2018, the limit for simplifiers was set, in general, at 150 million rubles. Regions can reduce this limit, but no more than 10 times. There are also restrictions regarding hired workers. Moscow entrepreneurs, for example, will be able to hire no more than 15 people, not only on the PSN, but also on the simplified tax system (as a general rule, you can have up to 100 employees on the simplified system).

Individual entrepreneurs operating under the tax holiday regime do not have any benefits when paying insurance premiums for themselves and for their employees. An entrepreneur’s contributions for himself in 2018 are at least 32,385 rubles, and they must be transferred even if there is no income from the business.

The base of regional laws on the introduction of a zero tax rate for new individual entrepreneurs is often updated, in addition, each of them has its own validity period. Current texts can be found on the Ministry of Finance website or in legal reference systems. In addition, you can find out all the details about the zero rate from the Federal Tax Service at your place of registration.

In order to develop entrepreneurship and support it at the initial stage of development, tax holidays are provided, according to which new registered individual entrepreneurs may not pay the tax that is basic for the tax regime chosen by the entrepreneur, due to the application of a 0% rate. In this article we will look at how tax holidays are provided for individual entrepreneurs and for what periods.

At the same time, the individual entrepreneur retains other tax obligations - payment on a general basis of tax on the income of employees, land, transport, if there are relevant objects subject to these types of tax. There is also still a need to make mandatory insurance contributions for employees if their labor is used by an entrepreneur, as well as for themselves. Tax holidays apply only to the main tax of the regime.

Those entrepreneurs who meet a number of criteria can take advantage of this right, established by Law 477-FZ of December 29, 2014. Tax holidays are available only for individual entrepreneurs. If a legal entity is registered, then tax exemption is not provided, including situations where the formed organization is very small and meets the criteria of small enterprises.

Conditions for applying tax holidays

An individual who has formed an individual entrepreneur may not transfer the main tax of the regime for 2 tax periods if the following criteria are simultaneously met:

1. A citizen registers a business for the first time. If an existing individual entrepreneur closes his current business and is deregistered, after which he registers again with the tax authorities, then he will not receive the right to vacation again, since the condition for the initial formation of an individual entrepreneur has been violated. Also, individuals who were former individual entrepreneurs do not have this right, since registration of a new business will be repeated for this citizen;
2. The procedure for creating an individual entrepreneur was carried out after the approval of the legislative act of the regional authorities on the introduction of holidays in the constituent entities of the Russian Federation. If the region has not provided for such relaxations for entrepreneurs, and has not prepared and approved the corresponding law, then individual entrepreneurs do not have an exemption from the basic tax;
3. The individual entrepreneur chose a patent or simplified regime to conduct business. Read also the article: → “”. In this case, the zero rate applies to a special tax under the simplified tax system or a tax for a patent. If an individual entrepreneur chooses a simplified regime, then tax holidays are available regardless of the selected taxable object. In the case of an income-expenditure object, the entrepreneur is also exempt from transferring the minimum tax that an individual entrepreneur must pay in the amount of one percent of income if his profit is zero or negative;
4. The entrepreneur's field of activity must relate to the scientific, social or industrial sphere;
5. The share of income of a simplified individual entrepreneur from activities for which tax holidays are available must be equal to or exceed 70% of total income;
6. There is no limit on the number of people hired by law 477-FZ, but regions have the right to limit the number of personnel to apply the benefit. This condition is prescribed in the law, on the basis of which a grace period for paying taxes is introduced for individual entrepreneurs;
7. The law also does not establish a limit on the amount of income; the right to regulate the maximum level for revenue from preferential activities is granted to Russian entities. It is not permissible to set an income limit for “simplified” people, reduced by more than 10 times relative to the value of the income limit prescribed in clause 4 of Article 346.13 of the Tax Code of the Russian Federation

Only if each of the specified conditions is met, it is possible to count on receiving a tax holiday in the form of no tax to be accrued for the first two periods recognized as tax.

The Tax Code of the Russian Federation does not provide for the need to notify the tax office about the use of the right to tax holidays.

Vacation period for individual entrepreneurs

An individual entrepreneur may not pay tax for two tax periods from the moment of formation of the individual entrepreneur. For the “simplified” one, the calendar year is taken as such a period. If an individual entrepreneur is registered during the year, then he may not pay tax for the current year, as well as for the next. In fact, the duration of his vacation will be less than two years. That is why, in order to make full use of the benefits, it is more profitable to register an individual entrepreneur at the beginning of the calendar year.

Individual entrepreneurs on PSN also have the right not to pay tax for two tax periods. However, under the patent regime, the duration of this period may be less than 12 months, however, this rule remains subject to the limitation of two calendar years. The most profitable option is when the patent is obtained for one year; in this case, the entrepreneur uses the entire vacation period.

If the patent is acquired for a shorter period, then it is considered a tax period. Read also the article: → “”. In such a situation, its effect will terminate before the end of the allotted maximum vacation period, the remaining unused part of two calendar years is lost.

Law 477-FZ establishes that the time for using tax holidays should be from the beginning of 2015. until the end of 2020

Do I need to keep records of income and expenses?

Also, accounting for expenses and income will be useful if an individual entrepreneur loses the right to vacation due to violation of established conditions. In this case, it will be necessary to calculate and charge tax according to standard rules for the entire tax period when the violation was committed. If the individual entrepreneur did not keep the required minimum records, then the indicators will have to be restored for the entire period of the vacation.

Loss of right to benefit

A situation is possible when an entrepreneur at the time of formation of an individual entrepreneur met the necessary criteria for applying tax holidays, but in the course of his activities he lost this right due to the violation of some condition. For example, the share of income from preferential lines of business as a part of total income has decreased. In this case, the individual entrepreneur can no longer use preferential conditions and is obliged to calculate and pay tax for the entire tax period when the violation was committed.

If such a situation arose in the first period of application of tax holidays, then you will have to pay the simplified tax system or patent tax for this entire period. Read also the article: → “”. If in the next period the individual entrepreneur again meets the criteria for applying the benefit, then he will not have the right to a tax holiday, since this benefit is possible only with its continuous use over 2 tax periods.

If the right to tax holidays is lost in the first tax period, it will not be possible to restore it in the next one, since the condition for the continuity of application of the benefit over 2 tax periods is violated. If the violation was committed in the second tax period, then the tax will need to be calculated and paid for this period; there will be no need to charge tax for the first tax period, since all the necessary conditions of the preferential tax rules were met.

Types of activities for tax holidays

Law 477-FZ establishes that an entrepreneur’s business must fit into the production, scientific or social sphere. The law does not contain a specific list.

Subjects of the Russian Federation, establishing tax holidays on their territory, limit the list of preferential areas, guided by the requirements of Law 477-FZ and the OKUN and OKVED classifiers. Depending on the situation, an entrepreneur needs to carefully study the legislative acts of local authorities to clarify the presence of the right to tax holidays. As a rule, a specific list of areas of activity is prescribed, as well as details of the classifier according to which they are defined.

If you have doubts about the presence of tax holidays when conducting a certain type of activity, you can contact Rosstat or Rosstandart for clarification.

Tax holidays in the regions

The above federal law established the right of the constituent entities of the Russian Federation to introduce preferential working conditions for beginning entrepreneurs on their territory, but this is not their responsibility. Regional authorities independently decide whether tax holidays are necessary in the territory. If the decision is positive, a corresponding legislative document is adopted that defines the conditions for using the benefit.

When registering, an entrepreneur should check whether the local authorities have introduced a grace period. If such a law exists, it is posted on the official website of the regional Duma. Regional authorities have the right to determine a list of areas of activity, upon registration of which an individual entrepreneur will be temporarily exempt from tax liability for simplified or patent tax. Regions may limit the amount of income from preferential activities, as well as the number of employees.

Examples of introducing tax holidays in the regions

Region	Legislative act establishing tax holidays	Period of application of the right to holidays	Additional terms
Moscow	Law No. 10 of March 18, 2015	From March 25, 2015 until December 31, 2020	Number of personnel – 15 employees on average per year
Moscow region	Law No. 48/2015-OZ dated 04/09/15.	From April 13, 2015 until December 31, 2019
Saint Petersburg	Law No. 329-6 of June 10, 2015. – for individual entrepreneurs on the simplified tax system. Law No. 764-137 of November 26, 2015 – for individual entrepreneurs on PSN.	From January 1, 2016 until December 31, 2020	Number of personnel – no more than 15 employees on average per year