To conduct business in agriculture, in addition to the general forms of doing business as individual entrepreneurs or LLCs, they use specific forms of organization such as: private subsidiary plots (personal subsidiary plots) and peasant farms (peasant farms). In this article we will look at how taxation of peasant farms is carried out under different regimes: OSNO, simplified tax system, unified agricultural tax and compare them.
Specifics of applied taxation and reporting systems for peasant farms
The activities of a farm and its taxation are regulated in Russia by the Tax Code, as well as Federal Law No. 74 “On Peasant Farming” dated June 11, 2003, as amended in 2016. When submitting documents for registration of a farm, the head of the peasant farm can immediately declare the taxation regime (see →). The peasant farm (as an entrepreneur) has the right to work according to one of the systems to choose from:
- OSNO;
- Unified Agricultural Sciences.
In this case, from the moment of registration the selected taxation regime will come into force. By default, peasant farms switch to OSNO. If a month has passed after registration, if the peasant farm does not declare a transition to the unified agricultural tax or simplified tax system, the farm will be able to switch to one of these regimes only from next year. He will need to submit the application to the tax authorities by December 31.
It should be taken into account that, according to the law, peasant farms calculate, in addition to taxes, insurance contributions (to the Pension Fund of the Russian Federation, Social Insurance Fund, Federal Compulsory Medical Insurance Fund) regardless of the special regime applied. Since the participants of peasant farms are not only members of the farm, but also hired workers, the head of the farm (IP) transfers fixed insurance payments for himself and the members of the farm and at the same time pays for compulsory insurance for all employees. The procedure for payment of contributions for heads of farms is determined by Federal Law 212 of July 24, 2009, Article 14.
If hired workers work in a peasant farm, under any special regime it is necessary to submit the following reports.
| Reporting forms | Due dates | Who to submit reports to? |
| 2-NDFL (on employee income); 6-NDFL (information on deductions made by the tax agent for all employees); KND 1110018 (information on the average number of employees) | Annually until 01.04; quarterly (in the current year: until May 4, August 1, October 31, annually - together with form 2-NDFL until 04/01/2017); annually: for farms created during the year - until the 20th day of the month following the one in which they were created, newly registered payers do not submit this information in the year of opening | Tax Service |
| Personalized accounting and form RSV-1; SEV-M (data on insured workers) | Quarterly (submitted on paper if there are up to 25 employees, in 2016: until May 16, August 15, November 15, for the year - until February 15, 2017); monthly (until the 10th) | Pension Fund |
| Information confirming the main activity; | Annually (until April 15); quarterly: on paper if the number of employees is up to 25, submitted before the 20th day of the month following the reporting period, in other cases, the electronic version is submitted until the 25th after the reporting period | FSS |
Application of peasant farms under the general taxation regime (OSNO)
The transition to the general taxation system occurs automatically if, when opening a farm, an application for the application of the selected special regime is not submitted on time or when the right to apply other taxation systems is lost.
The general taxation system involves the payment of the same taxes for peasant farms and individual entrepreneurs: property, land, transport, personal income tax (13% for residents, 30% for non-residents of the Russian Federation), VAT (10 or 18%) and, accordingly, mandatory insurance contributions. Moreover, personal income tax is calculated from all income of employees. The reporting form in accounting is the balance sheet and the final report on financial results. The head of a farm, like an individual entrepreneur, is required to take:
- forms 3-NDFL (even if there is no profit) and 4-NDFL annually until April 30;
- VAT declaration quarterly (in 2016: until April 25, July 25, October 25, January 25).
It is noteworthy that for those newly registered as peasant farms for the first 5 years, the law provides benefits in the form of exemption from personal income tax on income from production, processing, and sale of agricultural products. For other types of income, personal income tax is calculated for payment on a general basis. Grants and subsidies from the budget are also not subject to taxation.
Despite the large number of taxes and reporting that are unique to OSNO, this special regime is beneficial in certain situations. The general taxation system significantly increases earnings on goods. Wholesalers, other large organizations, and farms interested in reducing the VAT burden give preference to OSNO, since it is this special regime that provides them with such an opportunity.
Use of a special tax regime for peasant farms under the simplified tax system
The simplified taxation system is considered the most beneficial for small businesses in comparison with the general taxation procedure. Farmers using the simplified regime have the right to choose one of the tax calculation systems:
- for income with a maximum rate of 6%: amount of profit * current rate;
- for expenses with a maximum rate of 15%: established rate * (amount of profit - expenses incurred).
Obviously, if expenses are minimal or absent, then it is not advisable to choose the second calculation option at a rate of 15%. Maximum rates can be lowered by constituent entities of the Russian Federation to 1% for income and 5% for expenses, respectively. Tax payments are made quarterly until the 25th day of the month following the quarter, and for the year - until April 30.
Under the simplified tax system, simplified accounting is carried out using the “cash” method. The main reporting of a farm is a declaration according to the simplified tax system (submitted annually before April 30) and an accounting book for profits and expenses (submitted to the tax authorities upon request).
The legislative basis for peasant farms on the simplified tax system is determined by the Tax Code of the Russian Federation (Chapter 26.2) and Federal Law No. 402 “On Accounting” dated December 6, 2011, as amended on May 23, 2016. If during the reporting period the farm’s profit exceeds the maximum amount established by law, then the right to apply the simplified tax system is lost.
Example #1. Application of the simplified tax system in farming
A newly created peasant farm (as an individual entrepreneur) has been using the simplified tax system for six months since registration (during registration, an application for the use of the simplified tax system was simultaneously submitted with a package of documents). The number of employees is 10 people, profits significantly exceed expenses. There are no restrictions on use or type of activity.
To calculate the tax, the simplified tax system (STS) was chosen. Accordingly, tax is calculated at a maximum rate of 6%. Tax calculation formula: profit * 6%. Taxes are paid at the end of each quarter no later than the following 25th day.
Accounting is carried out using the “cash” method. The head of the household fills out an accounting book for expenses and profits. At the end of the year, a declaration under the simplified tax system will be submitted and the annual tax will be paid until April 30. If the annual income does not exceed the limit established by law, the peasant farm will remain on the simplified tax system. If the conditions are violated at the end of the year, the farm will automatically switch to OSNO. The figure below discusses in the infographic the requirements for the transition to the simplified tax system, interest rates, advantages and disadvantages for peasant farms ⇓
Application of preferential taxation for peasant farms on the Unified Agricultural Tax
A single tax for agricultural producers seems to be the most optimal. The number of tax payments under the Unified Agricultural Tax is significantly reduced. Farmers pay only one combined fee at a set rate of 6%, which replaces other taxes. The fee is calculated using the formula:
Unified agricultural tax = fixed interest rate * (amount of profit - amount of expenses).
Tax payments are paid at the end of the half-year and for the year. In addition, simplified accounting is used in accounting using the “cash” method. The head of the peasant farm maintains an accounting book of expenses and profits, which is not certified by the tax authorities. Rented annually:
- declaration to the Unified Agricultural Tax at the place of registration by March 31 of the following reporting year;
- Form RSV-2 (for the Pension Fund of Russia) must be submitted by March 1.
To switch to a single special regime, you must submit a corresponding application within the established time frame. Applicants can only be those from farms that are engaged in the production, sale, and processing of exclusively agricultural products with a share of this type of income of at least 70% of the total profit. Moreover, the production and sale of agricultural products in this case act as a mandatory requirement. For example, if a farm is engaged only in processing products without production, then it may be denied the transition to the Unified Agricultural Tax.
Example #2. Calculation of Unified Agricultural Tax for a peasant farm
A peasant farm consisting of 3 people is engaged in the cultivation, processing and sale of vegetables and fruits. The profit of the farm is 800 thousand rubles, costs are 600 thousand rubles. Based on these data, the tax base is first calculated (based on the difference between profits and expenses): 800,000-600,000 = 200,000 rubles.
After this, the unified agricultural tax for payment to the budget is calculated. The current rate of 6% is used for calculations. The result is the following: 200,000 * 6% = 12 thousand rubles. This is the amount of single tax that will need to be paid.
Specifics and advantages of possible taxation regimes for peasant farms in comparison
The choice of special regime depends largely on the main indicators of the farm’s agricultural activity, primarily on the amount of profit, size and volume of products produced. One should proceed from the specifics of the operation of the farm itself and the taxation that suits it best.
The significant difference between the three systems is visible primarily in the tax burden and associated restrictions, which should be taken into account when deciding on the use of special regimes. It should also be noted when comparing the fact that the composition of the calculated taxes of peasant farms and individual entrepreneurs is mostly identical.
| Special modes | BASIC | USN (Profit): | USN (Profit-Expense) | Unified agricultural tax |
| Basic tax payments and rates | Personal income tax (13% - for residents, 30% - for non-residents of the Russian Federation), VAT (10 or 18%), property, transport and land taxes | Single profit tax at a rate of 6% | A single tax at a rate of 5-15% on the difference between profit and expense (if costs exceeded profit, then 1% of the annual profit) | Unified agricultural tax at a rate of 6%; 0% for Crimea and Sevastopol in 2016 and 4% in subsequent years until 2021; transport and land taxes |
| Restrictions on use | - | There is (Tax Code of the Russian Federation, Art. 346.12 and 346.13) | There is (Tax Code of the Russian Federation, Art. 346.12 and 346.13) | There is (Tax Code of the Russian Federation, Art. 346.2, clause 2 and clause 5) |
| Restrictions on type of activity | - | - | - | There is (Tax Code of the Russian Federation, Art. 346.2, clause 2) |
The general taxation procedure provides a wide range of opportunities for developing a serious business. Among the obvious advantages are the possibility of VAT reimbursement, taking into account costs and damages in tax calculations, and the absence of any restrictions. The simplified tax system significantly reduces the tax burden, which will most likely attract newcomers to entrepreneurship. Well, the Unified Agricultural Tax is designed specifically for workers in the agro-industrial complex, taking into account the specifics of their work.
Let's sum it up
Farmers have the right to choose one of three possible special regimes. They cannot be combined.
The Unified Agricultural Tax is intended for a narrow circle of agricultural producers with a profit of at least 70% of the total income. It is for them that a low rate, simplified accounting, and favorable payment terms are provided.
The simplified tax system is more often used when the number of employees is up to 100 people and the annual profit exceeds 45 million rubles. The simplified tax system (Profit) is suitable for a farm whose profit exceeds expenses, and the simplified tax system (Profit-Expense) is suitable for activities with high production costs.
It is more appropriate to use a complicated SOS for large participants in commercial activities with high turnover and for those whose partners also use SOS.
It is also possible to voluntarily abandon the Unified Agricultural Tax, but only from the new year. To do this, from January 1 to January 15, an application is submitted to the Federal Tax Service. Reporting of the individual entrepreneur - head of the KFC in 2017 The Unified Agricultural Tax Declaration is submitted once a year until March 31. It can be submitted in paper form or electronically. The declaration on paper is taken to the tax office in person or sent by mail. The tax is paid in two stages - the first advance payment for the six months before July 25, the second final payment for the year - until March 31. Current declaration forms for the Unified Agricultural Tax, as well as notifications about the transition to this regime or refusal from it, can be downloaded from the “My Business” service. Or you can get rid of the headache of filling out and sending reports and entrust this to experienced specialists “My Business. Accountant” who will do everything quickly and in the best possible way. If the individual entrepreneur, the head of the KFK, has hired employees, then several more forms are added to the reports, which are mandatory for employers.
Peasant farm reporting in 2018
Attention
However, the procedure for calculating and paying contributions is different:
- for members of peasant farms;
- from payments to hired personnel.
This conclusion follows from paragraph 3 of Article 2, subparagraph “b” of paragraph 1 of Article 5, paragraph 2 of Article 14 of the Law of July 24, 2009 No. 212-FZ. With payments to hired employees, the head of the peasant farm will also need to pay insurance premiums against accidents and occupational diseases (paragraph 7, article 3 of Law No. 125-FZ of July 24, 1998). Contributions for compulsory pension and health insurance for members of a peasant farm are paid by its head in a fixed amount (clause
3 tbsp. 2, sub. "b" clause 1 art. 5, paragraph 2, art. 14 of the Law of July 24, 2009 No. 212-FZ). The application of this procedure does not depend on whether there are hired personnel or not. Situation: is the head of a peasant farm obligated to pay contributions for compulsory pension and health insurance for a member of a peasant farm who is also an entrepreneur? Answer: yes, I must.
Individual entrepreneur reporting on eskhn
VAT, tax on property used for business, and personal income tax, with rare exceptions, do not need to be paid. The reporting of individual entrepreneurs to the Unified Agricultural Tax is just one declaration per year and a book of income and expenses, and the book is kept at home and presented to the tax office only upon request. How to switch to Unified Agricultural Tax If an individual entrepreneur is already working, you can switch to this mode only from the next calendar year.
Before the end of the year, a notification is submitted to the tax office indicating the share of income from the sale of agricultural products or fish catch. Newly registered individual entrepreneurs, in order to immediately begin working for the Unified Agricultural Tax, submit a notification within 30 days after registration. Keep in mind that if at the end of the year the requirements for the use of the Unified Agricultural Tax are violated, you need to report this to the tax office.
The tax will be recalculated as for OSNO and the arrears will have to be paid to the budget.
Taxation of peasant farming: special regimes and reporting
- Fishery organizations and individual entrepreneurs, subject to their compliance with the following conditions: if the average number of employees does not exceed 300 people during the year; and if in the total income from the sale of goods, works, services, the share of income from the sale of their catches of aquatic biological resources or produced on their own from of which fish and other products from aquatic biological resources account for at least 70 percent during the tax period;
Accounting for income and expenses under the Unified Agricultural Tax is carried out using the cash method. Tax accounting for the purposes of calculating the Unified Agricultural Tax for organizations is carried out on the basis of accounting data. The tax rate is set at 6 percent of income reduced by expenses (income - expenses).
What kind of reporting should a peasant farm submit as an individual entrepreneur in 2017?
Tax Code of the Russian Federation). The 50 percent limit does not apply to them. Unified Agricultural Tax When using Unified Agricultural Tax, pay taxes in the same manner as other organizations. Taxation of peasant farms without registering an organization If a peasant farm is not registered as an organization, this means that its head operates as an entrepreneur.
In this case, he can use:
- general taxation system;
- simplified;
This follows from the provisions of Chapters 25, 26.1 and 26.2 of the Tax Code of the Russian Federation. BASIC If the head of a peasant farm applies the general taxation system, then he pays:
- land tax, if in the area in which the peasant farm operates there are no benefits for this tax;
- transport tax.
The procedure for paying personal income tax has some features.
Unified agricultural tax for peasant farms
The heads of peasant (farm) households pay the appropriate insurance premiums in a fixed amount to the Pension Fund for themselves and for each member of the peasant farm. A newly registered peasant farm must notify the tax authority about the transition to the Unified Agricultural Tax within 30 calendar days from the date of tax registration (clause 2 of Article 346.3 of the Tax Code of the Russian Federation). What kind of reporting should a peasant farm submit as a sole proprietor in 2017? The book can be filled out manually or maintained electronically; there is no need to certify it to the Federal Tax Service since 2013. Submitting reports to the Pension Fund of the Russian Federation (PFR):
- The heads of peasant farms submit reports to the Pension Fund of Russia in the form RSV-2 before March 1 of the calendar year.
Payment of taxes and fees:
- After the end of the reporting period - half a year, no later than 25 calendar days, you need to transfer the advance payment of tax in connection with the Unified Agricultural Tax.
Important
The simplified declaration must be submitted to the Federal Tax Service once a year, before April 30. The tax is paid quarterly: three times in advance by the 25th, and the final tax for the year – by April 30. Peasant farms in most situations are equated to individual entrepreneurs, therefore, regardless of the form of the legal entity, it can reduce the tax on the entire amount of insurance premiums for the head and other members, without a limit of 50%. BASIC The general tax regime is used in peasant farms extremely rarely and only when necessary . Farm reporting Attention Hello! In this article we will talk about taxation and reporting in peasant farms (peasant farms).
A farm can be registered as a legal entity, but most often the head is registered as an individual entrepreneur. By default, in the system for calculating taxes, pensions and insurance contributions, peasant farms operate at the individual entrepreneur level - that is, they submit the same reports and have the same benefits. Types of taxation of peasant farms Among farms, the Unified Agricultural Tax is most often used - an agricultural tax, which was actually introduced specifically for peasant farms.
But nevertheless, other tax systems are available to both organizations and individual entrepreneurs in the field of agriculture. In each taxation system, LLCs (unlike individual entrepreneurs) additionally submit transport and land tax declarations (until February 1), accounting reports and information on financial results (until March 31).
The individual head of the peasant farm, what reports to submit and pays taxes
The share of income from the sale of agricultural products/catch of aquatic biological resources by peasant farms in total income must be at least 70% (clause 2, 2.1. Article 346.2 of the Tax Code). When peasant farms can begin to apply Unified Agricultural Tax Peasant farms can apply for Unified Agricultural Tax upon creation or from January 1 of any calendar year. An application for unified agricultural tax is submitted in the form of Notification of the transition to unified agricultural tax No. 26.1-1, approved in Appendix 1 to Order of the Federal Tax Service of Russia dated January 28, 2013 N ММВ-7-3/ When creating a peasant farm, an application for unified agricultural tax must be submitted to the tax authority in within 30 calendar days from the date of tax registration. When switching to Unified Agricultural Tax from January 1 of the following year, an application for Unified Agricultural Tax must be submitted before January 1. The notification is submitted to the tax authority at the location of the peasant farm / place of residence of the head of the peasant farm - an individual entrepreneur.
Peasant farms in most situations are equated to individual entrepreneurs, therefore, regardless of the form of the legal entity, it can reduce the tax on the entire amount of insurance premiums for the head and other members, without a limit of 50% only if the labor of hired workers is not used. BASIC The general taxation regime is used in peasant farms extremely rarely and only when necessary. The complexity and volume of peasant farm reporting on OSNO is inferior to other options, but the main system allows farmers to cooperate with large network partners who deal only with VAT. OSNO employs the majority of wholesale buyers who may be of interest to farmers. The fact is that the general regime allows wholesalers to significantly reduce the VAT burden. This regime will be applied to a newly formed farm automatically if its head does not have time to submit an application for the application of the simplified tax system or unified agricultural tax.
Home → Accounting consultations → Unified Agricultural Tax Update: May 25, 2016 Peasant farms have the right to switch to the Unified Agricultural Tax system by paying a unified agricultural tax for peasant farms. Which peasant farms have the right to apply the Unified Agricultural Tax The taxation system in the form of a single agricultural tax has the right to apply:
- peasant farms created in the form of a legal entity (clause 1 of article 86.1 of the Civil Code of the Russian Federation);
- an individual entrepreneur who is the head of a peasant farm created without the formation of a legal entity on the basis of an agreement (Clause 5 of Article 23 of the Civil Code of the Russian Federation).
To apply the unified agricultural tax, peasant farms must produce agricultural products, process them and sell them (clause 2 of article 346.2 of the Tax Code). Unified agricultural tax also has the right to apply peasant farms with an average number of employees of 300 people. per year, engaged in fishing on their own vessels or used under charter agreements (clause 2.1. Article 346.2 of the Tax Code).
05May
Hello! In this article we will talk about taxation and reporting in peasant farms (peasant farms).
Today you will learn:
- What taxation systems are available for peasant farms;
- What kind of reporting do peasant farms submit for their members and hired employees?
What is a peasant farm?
Peasant farming – a commercial organization that is engaged in the production, sale and processing of agricultural products or provides services in this area (the latter came into force in 2017).
The activities of peasant farms are regulated by Federal Law No. 74 “On Peasant Farming”.
By default, in the system for calculating taxes, pensions and insurance contributions, peasant farms operate at the individual entrepreneur level - that is,.
Types of taxation of peasant farms
Among farms, the most commonly used tax is the agricultural tax, which was actually introduced specifically for peasant farms. But nevertheless, both organizations and individual entrepreneurs in the field of agriculture are available.
Unified agricultural tax
The peculiarity of the unified agricultural tax lies in the relaxed requirements for record keeping and benefits provided specifically for peasant farms.
However, farms do not use it by default immediately after registration, but must submit an application to the Federal Tax Service about their intention to use the unified agricultural tax. This can be done within a month after registering with the tax office in order to immediately begin your work on the Unified Agricultural Tax, or before December 31 - in order to begin applying the regime from January 1 of the next year.
The tax rate under the Unified Agricultural Tax is 6% of net profit (income minus expenses). Based on the decision of local authorities, the percentage is sometimes reduced to 4%.
The following have the right to use the Unified Agricultural Tax:
- Manufacturers of agricultural products, organizations processing and selling them. At the same time, income from the sale of own farm products must be more than 70% of the total.
- Agricultural consumer cooperatives, in which more than 70% of their income comes from the sale of products produced by members of the cooperative.
- Individual entrepreneurs and fishing enterprises with an average annual number of employees of less than 300, with income from the sale of catch in relation to total revenue of more than 70%.
- Organizations providing agricultural services.
To switch to the Unified Agricultural Tax, an enterprise must produce or sell agricultural products. For example, it is unacceptable to only process it.
All entrepreneurs who have chosen the Unified Agricultural Tax must maintain. Since 2017, it no longer needs to be certified by the Federal Tax Service, which also applies to peasant farms on the Unified Agricultural Tax.
Tax reporting is submitted annually, until March 31 of the following year. Advance payment under the Unified Agricultural Tax is made until July 25, and full tax payment is due until March 31 of the next calendar year.
The deadline for submitting reports to the tax office is January 30 of the year following the reporting year, using the form Calculation of insurance premiums. The second section is completed.
Other possibilities of the Unified Agricultural Tax:
- Write-off of fixed assets when they are put into circulation;
- Inclusion of advance payments in the income item;
- Liberation from , and .
simplified tax system
To apply the simplified tax system “Income” or “Income minus expenses”, you must submit an application to the tax office. It is better to do this immediately, when registering a company.
Peasant farms with minimal expenses prefer the “income” system (6%), and farms that have a significant share of expenses and are able to confirm them choose the “income minus expenses” system (profit tax is 15%).
Regional authorities can reduce the rate by 1% on “income” and up to 5% on “income minus expenses.”
Accounting for peasant farms using the simplified tax system is also simplified. The economy must be maintained and provided to the tax service upon request.
Peasant farms on OSNO pay:
- Property tax;
- Land tax;
- Transport tax;
- Personal income tax (withheld from the wages of all hired employees);
Reporting to government funds
For members of peasant farms there are fixed insurance rates that are independent of and relevant for individual entrepreneurs.
The head of a farm that does not have hired employees is obliged to submit to the tax office every year on January 30 the calculation of insurance premiums for himself and for members of the peasant farm, filling out the 2nd section. The report can be provided in both paper and electronic format.
Insurance premiums must be paid before the end of the calendar year. This can be done in one payment or quarterly.
Personal income tax withheld from employees' salaries must be transferred to the state no later than the day following the date of issue to the employee.
Submitted to the Pension Fund quarterly, until mid-February, May, August and November Calculation of insurance premiums. Information about insured persons is provided by the 15th of each month ().
A form is submitted to the Social Insurance Fund; it must be submitted before the twentieth of January, April, July and October, if in paper form and before the 25th in electronic format. Once a year, before April 15, LLCs must confirm their main activity with the Social Insurance Fund.
Contributions to the Pension Fund and Social Insurance Fund for employees are made until the 15th of the next month.
In this article we will talk about taxation and reporting in peasant farms (peasant farms).
What is a peasant farm?
A peasant farm is a commercial organization that produces, sells and processes agricultural products or provides services in this area (the latter came into force in 2017). The activities of peasant farms are regulated by Federal Law No. 74 “On Peasant Farming”.
A farm can be registered as a legal entity, but most often the head is registered as an individual entrepreneur.
By default, in the system for calculating taxes, pensions and insurance contributions, peasant farms operate at the individual entrepreneur level - that is, they submit the same reports and have the same benefits.
Types of taxation of peasant farms
Among farms, the Unified Agricultural Tax is most often used - an agricultural tax, which was actually introduced specifically for peasant farms. But, nevertheless, other tax systems are available to both organizations and individual entrepreneurs in the field of agriculture.
In each taxation system, LLCs (unlike individual entrepreneurs) additionally submit transport and land tax declarations (until February 1), accounting reports and information on financial results (until March 31).
Unified agricultural tax
The peculiarity of the unified agricultural tax lies in the relaxed requirements for record keeping and benefits provided specifically for peasant farms. However, farms do not use it by default immediately after registration, but must submit an application to the Federal Tax Service about their intention to use the unified agricultural tax. This can be done within a month after registering with the tax office in order to immediately begin your work on the Unified Agricultural Tax, or before December 31 - in order to begin applying the regime from January 1 of the next year.
The tax rate under the Unified Agricultural Tax is 6% of net profit (income minus expenses). Based on the decision of local authorities, the percentage is sometimes reduced to 4%.
The following have the right to use the Unified Agricultural Tax:
- Manufacturers of agricultural products, organizations processing and selling them. At the same time, income from the sale of own farm products must be more than 70% of the total.
- Agricultural consumer cooperatives, in which more than 70% of their income comes from the sale of products produced by members of the cooperative.
- Individual entrepreneurs and fishing enterprises with an average annual number of employees of less than 300, with income from the sale of catch in relation to total revenue of more than 70%.
- Organizations providing agricultural services.
To switch to the Unified Agricultural Tax, an enterprise must produce or sell agricultural products. For example, it is unacceptable to only process it.
All entrepreneurs who have chosen the Unified Agricultural Tax must maintain an accounting book (KUDiR). Since 2017, it no longer needs to be certified by the Federal Tax Service, which also applies to peasant farms on the Unified Agricultural Tax.
Tax reporting is submitted in the form of a Unified Agricultural Tax declaration annually, until March 31 of the following year. Advance payment under the Unified Agricultural Tax is made until July 25, and full tax payment is due until March 31 of the next calendar year.
The deadline for submitting reports to the tax office is January 30 of the year following the reporting year, using the form “Calculation of insurance premiums.” The second section is completed.
Other possibilities of the Unified Agricultural Tax:
- Write-off of fixed assets when they are put into circulation;
- Inclusion of advance payments in the income item;
- Exemption from property tax, VAT and personal income tax.
simplified tax system
To apply the simplified tax system “Income” or “Income minus expenses”, you must submit an application to the tax office. It is better to do this immediately, when registering a company.
Peasant farms with minimal expenses prefer the “income” system (6%), and farms that have a significant share of expenses and are able to confirm them choose the “income minus expenses” system (profit tax is 15%).
Regional authorities can reduce the simplified tax rate by 1% on “income” and up to 5% on “income minus expenses.”
Accounting for peasant farms using the simplified tax system is also simplified. The farm must maintain KUDiR and provide it to the tax service upon request.
The simplified declaration must be submitted to the Federal Tax Service once a year, before April 30. The tax is paid quarterly: three times in advance before the 25th, and the final tax for the year - until April 30.
Peasant farms in most situations are equated to individual entrepreneurs, therefore, regardless of the form of the legal entity, it can reduce the tax on the entire amount of insurance premiums for the head and other members, without a limit of 50% only if the labor of hired workers is not used.
BASIC
The general taxation regime is used in peasant farms extremely rarely and only when necessary. The complexity and volume of peasant farm reporting on OSNO is inferior to other options, but the main system allows farmers to cooperate with large network partners who deal only with VAT.
OSNO employs the majority of wholesale buyers who may be of interest to farmers. The fact is that the general regime allows wholesalers to significantly reduce the VAT burden. This regime will be applied to a newly formed farm automatically if its head does not have time to submit an application for the application of the simplified tax system or unified agricultural tax.
For some peasant farms, income tax can be reduced to zero. The full list of preferential areas is reflected in Article 284 of the Tax Code.
Automatically, all participants and the head of the farm are exempt from personal income tax payments for five years on income from the production, sale and processing of agricultural products.
It is legal to use this benefit only once - intentional re-registration of peasant farms is punishable by law. Income from activities not related to agriculture and farming is taxed without special benefits. Government subsidies and grants are not taxed.
The VAT return is submitted to the tax office once a quarter (in January, April, July and October before the 25th). Every year until April 30, forms 3-NDFL and 4-NDFL are provided. These requirements apply to both individual entrepreneurs and LLCs. Form 3-NDFL must be submitted even if there was no profit.
The company's reporting on OSNO also includes quarterly submission of income and property declarations.
Peasant farms on OSNO pay:
- Property tax;
- Land tax;
- Transport tax;
- Personal income tax (withheld from the wages of all hired employees);
- Mandatory insurance contributions.
Reporting to government funds
For members of peasant farms there are fixed insurance rates that do not depend on the minimum wage and are relevant for individual entrepreneurs.
The head of a farm that does not have hired employees is obliged to submit to the tax office every year on January 30 the calculation of insurance premiums for himself and for members of the peasant farm, filling out the 2nd section. The report can be provided in both paper and electronic format.
Insurance premiums must be paid before the end of the calendar year. This can be done in one payment or quarterly.
In addition, peasant farms are required to report to the state statistics service:
- Peasant farms with agricultural crops report annually before June 11 using form No. 1 - farmer.
- Peasant farms with livestock of farm animals report on form No. 3 - farmer until January 6.
Reporting for employees
If a peasant farm hires workers, then new obligations arise along with them.
Employees must provide the following to the tax office:
- Form 2-NDFL for each employee (until April 1);
- Form 6-NDFL (quarterly until the end of January, April, July and October and one annual along with 2-NDFL);
- Form on the average number of employees, KND 1110018 (until January 20).
Personal income tax withheld from employees' salaries must be transferred to the state no later than the day following the date of issue to the employee.
Calculation of insurance premiums is submitted to the Pension Fund quarterly, before mid-February, May, August and November. By the 15th day of each month, information about insured persons (SZV-M) is provided.
Form 4-FSS is submitted to the Social Insurance Fund; it must be submitted before the twentieth of January, April, July and October, if in paper form and before the 25th in electronic format. Once a year, before April 15, LLCs must confirm their main activity with the Social Insurance Fund.
Contributions to the Pension Fund and Social Insurance Fund for employees are made until the 15th of the next month.
