How to apply for individual tax holidays. Tax holidays for individual entrepreneurs. How to switch to tax holidays

In the Unified Register of Small and Medium-Sized Enterprises, as of December 10, 2018, the number of individual entrepreneurs is 3.2 million. At the same time, according to the results of the first quarter of 2018, the number of individual entrepreneurs and individuals declared bankrupt increased by 50% compared to the same period in 2017 of the year. The number of bankruptcies has reached 9,000, according to Fedresurs data.

Perhaps 2013 was the most difficult year for entrepreneurs in recent years. Then fixed insurance premiums, which had to be paid regardless of income, increased sharply. Professional associations announced a massive departure of entrepreneurs into the “shadow”. But already at the beginning of 2014, the situation with contributions changed, and people began to open individual entrepreneurs again. Although in 2015, the increase in the number of individual entrepreneurs did not compensate for the decrease in 2013.

Small businesses entered 2016 under difficult economic conditions. Before this, the authorities talked a lot about the need to reduce the tax burden and measures to support small entrepreneurs. Among the innovations that are expected to make the lives of entrepreneurs easier are tax holidays.

Who and under what conditions can “go” on a tax holiday?

Tax holidays are a period established by law during which first-time registered individual entrepreneurs on the simplified tax system or special tax system can apply zero tax rates established in connection with the adoption of amendments to.

Tax holidays in 2019 will be available to individual entrepreneurs who comply with a number of requirements:

• The individual entrepreneur must be registered for the first time.
• An individual entrepreneur must use one of two taxation systems - simplified taxation system and PSN. If a general taxation system or special regimes are applied, a newly registered entrepreneur can switch to the simplified tax system or special tax system within two years in order to take advantage of the benefit.
• The activities of individual entrepreneurs must be related to the production, social or scientific spheres (subjects can establish types of activities within each sphere at their own discretion, it needs to be clarified).
• The share of services, works or goods subject to a 0% tax rate must be at least 70% of total income.

Tax holidays are valid for no more than two tax periods from the date of registration of an individual entrepreneur. Regions received the right to independently determine specific types of activities that are subject to tax benefits and set restrictions on their use depending on the number of employees and income limits.

It is important to remember that tax holidays apply exclusively to taxes paid under the simplified tax system and special tax system, while they do not exempt entrepreneurs from other taxes (excise taxes, land, transport taxes, etc.). Also, individual entrepreneurs, despite tax holidays, must pay insurance premiums for compulsory pension insurance for themselves and their employees. Please note that at the end of the year you need to submit a report according to the simplified tax system indicating the rate of 0%.

The tax holiday will end on January 1, 2021. So entrepreneurs still have time to take advantage of them and save money.

The individual entrepreneur registered again. Can he take advantage of tax holidays in 2019?

It happens that an entrepreneur ceased operations and deregistered, and then registered again as an individual entrepreneur, after the regional law introducing a zero tax rate came into force. Can he take advantage of the benefit?

Until recently, this issue was controversial. In particular, the Ministry of Finance clearly outlined its position: “A tax rate of 0 percent can be established by the laws of the constituent entities of the Russian Federation only for taxpayers - individual entrepreneurs registered for the first time after the entry into force of the relevant laws of the constituent entities of the Russian Federation, and cannot be applied by individual entrepreneurs who have withdrawn from registration in connection with the termination of activities and newly registered (repeatedly or once again) after the entry into force of the specified laws of the constituent entities of the Russian Federation.”

Judicial practice shows the lack of a uniform approach to resolving disputes related to the use of reduced tax rates by newly registered business entities using the simplified tax system or special tax system. But the Supreme Court put an end to this dispute.

Tax holidays: list of subjects of the Russian Federation

The decision to grant tax holidays, including their duration, is made by regional authorities. In some regions, individual entrepreneurs receive two full preferential years, in others - only one year. Additional restrictions may also be established on the application of a tax rate of 0%, in particular, in the form of a limitation on the average number of employees or the maximum amount of sales income received by an entrepreneur when carrying out a preferential type of activity.

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 you still have to pay?

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 get the most out 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 note 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:

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 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?

Despite the absence of the need to pay the main tax, individual entrepreneurs still need to take into account income and expense indicators. First of all, they will be useful for determining compliance with the criteria for using preferential conditions in terms of income.

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

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

Since 2015, tax legislation has introduced a zero rate for individual entrepreneurs using the simplified taxation system (STS) or the patent taxation system (PTS), i.e., they have the opportunity not to pay taxes.

The so-called “tax holidays for individual entrepreneurs” have been introduced.

What is the essence of this innovation?

According to adopted federal standards, starting from January 1, 2015, legislators of constituent entities of the Russian Federation can establish a zero rate for first registered individual entrepreneurs, who have chosen the tax system of either the simplified tax system or the PSN and carry out their activities in such areas as:

• production;
• social;
• scientific;
• provision of household services to the population.

At the same time, the types of business activities that will relate to the areas of activity listed above are established by the relevant laws of the constituent entities of the Russian Federation. And if your regional authorities have not decided to introduce a zero rate, then this means there will be no tax holidays for individual entrepreneurs in your region.

Moreover, “tax holidays for individual entrepreneurs” are introduced from the moment of registration and are valid only for two years if the activities of the individual entrepreneur are not interrupted. Here it is important not to forget that registration as an individual entrepreneur should really be the first, and not repeated, as many individuals who were previously individual entrepreneurs think.

If you have been an entrepreneur before

If you carried out entrepreneurial activity a long time ago, then stopped it, and now want to register as an individual entrepreneur again, then the “tax holiday” will not apply to you.

Moreover, if you registered for the first time after January 1, 2015, but the regional law introducing “tax holidays for individual entrepreneurs” has not yet been adopted, then you will also not be able to take advantage of the right to tax exemption.

For example, you first registered as an individual entrepreneur in March 2017 and plan to provide household services to the population. If, at the time of your registration as an individual entrepreneur, a constituent entity of the Russian Federation had not adopted a law introducing a “zero rate”, then you will not be able to apply “tax holidays” in 2017, and even later.

How to determine in advance whether the entrepreneurial activity of an individual entrepreneur relates to household services for the population or not

If you are a beginning individual entrepreneur and are trying to decide on the type of activity that you want to carry out and fall under the “tax holiday” for individual entrepreneurs in 2017, then you need to:

1. First of all, familiarize yourself with the All-Russian Classifier of Types of Economic Activities. By the way, when filling out an application for registration as an individual entrepreneur, you must also indicate the code of the type of activity or several codes, if you plan to carry out several types, from this Classifier. And today the classifier is new. This is OK 029-2014 (NACE REV. 2);

1. select from the Classifier the required type of activity that you will carry out and determine the code for this type of activity (at least 4 digital values);
2. check the presence of this type of activity in the list of those types of activities for which your regional authorities have introduced tax holidays for individual entrepreneurs in your region;
3. indicate the code of the selected type of activity in the application for registration as an individual entrepreneur and be exempt from paying tax for 2 years if the selected type of activity is subject to “tax holidays”.

For example, let's say you want to start a shoe repair business. Then, using the above Classifier, it can be established that the code for this type of activity will be 95.23 “Repair of shoes and other leather goods.” And this type of activity is included in section “S. Provision of other types of services" in:

• class 95 “Repair of computers, personal consumption and household items”;
• subclass 95.2 “Repair of personal and household items;
• group 95.23 “Repair of shoes and other leather goods.”

Moreover, you can see a decoding of the type of activity you are looking for, i.e. what the group includes. For example, the group that included the type of activity we found includes:

• repair of footwear and leather products: boots, shoes, suitcases and other similar products;
• heel heel;
• shoe coloring.

Thus, using the Classifier, you will be able to more accurately determine the type of activity that you plan to carry out and find out whether “tax holidays” apply to this type of activity or not.

What conditions are established for individual entrepreneurs during the “tax holiday”?

As a rule, when introducing a new norm that eases the burden on the payer, legislators always impose some conditions or restrictions. With the introduction of “tax holidays” for individual entrepreneurs, there were also restrictions accompanying this norm:

1. at the end of the tax period, the share of income received from activities in the above areas (i.e., which are subject to a zero rate) must be at least 70% of the total income received by the individual entrepreneur. This is the main condition that individual entrepreneurs who use both the simplified tax system and the PSN must comply with for 2 years. This is especially true for those individual entrepreneurs who combine modes. For example, if an individual entrepreneur has registered for the first time, but in addition to activities on the simplified tax system with a zero rate, he also applies UTII;
2. regional authorities may set restrictions on number and income.

What happens if an individual entrepreneur ceases its activities during the “tax holiday”?

If an individual entrepreneur during a “tax holiday” ceases to operate before the expiration of the second year of application of the zero rate or violates other restrictions established by regional laws, the individual entrepreneur will be obliged to pay tax at real rates for the year (tax period) in which these restrictions were violated.

Today, opening an individual business in the Russian Federation has some difficulties. Such difficulties include the financial situation of a person who plans to open his own business. To support small businesses, the country's authorities have developed a special program. This program also includes the introduction of tax holidays.

What are tax holidays

This is a legally established tax relief for individual entrepreneurs. Thanks to these concessions, a novice businessman can carry out tax accounting at a zero rate for a certain time. However, it is worth considering that tax holidays do not prevent a person from making mandatory contributions to the Pension Fund both for himself and for those working for him.

Legal framework, innovations

The possibility of using tax breaks is stipulated by Federal Law No. 477 of December 29, 2014. According to this regulatory act, you can take advantage of tax holidays one-time for a certain period of time. However, this opportunity is not available in all regions of Russia. Regional authorities of the subjects in which benefits are allowed have the right to adjust the conditions for implementing the regulatory legal act at their discretion. The adjustment directly depends on the economic situation in a particular region.

Reasons for receiving holidays

Only those individual entrepreneurs who meet the following requirements can receive tax holidays:

1. Individual entrepreneurship must be registered in a person’s name for the first time in his life;
2. The period of time that has passed since the registration of the business should be no more than two years;
3. Human activity must be related to certain areas. These include production, scientific and social;
4. Profit from these areas of activity cannot be less than 70% of total income;
5. The taxation regime can only be the simplified tax system and the PSN.

The above are only general requirements. In addition to them, regional authorities may introduce requirements regarding full annual profit, size of staff, etc.

A person who wants to receive a tax holiday needs to understand in detail the rules established not only at the federal level, but also at the regional level.

When can you apply for tax holidays?

Registration of these tax benefits for individual entrepreneurs is possible only for beginners. An entrepreneur will be able to receive them if the time since the registration of the business does not exceed two years. The legislation provides for a period of time during which such vacations can be assigned to individual entrepreneurs. This is the period from 2015 to 2020 inclusive.

Benefits when opening an individual entrepreneur, simplified tax system

Tax breaks may be provided to an individual entrepreneur who uses a simplified system. In this case, the tax rate will be 0.

We re-open an individual entrepreneur to obtain rights to tax holidays

Benefits are a good support when doing business. The businessman can invest the funds saved taking into account these concessions into the development of his business. Therefore, some entrepreneurs want to close the individual entrepreneur and open it again to receive benefits. However, you need to know that such actions will lead nowhere. Only those who registered for the first time can receive the right to vacation. Moreover, the registration procedure had to take place at a time when the law on vacations had already entered into force. Therefore, those who stopped their activities and then resumed them again will not receive the right not to pay taxes.

How to take advantage of tax holidays

In order to take advantage of the right to tax relief, you first need to study the regional requirements for the possible field of activity and for individual entrepreneurs. If a person’s business meets these criteria, he can apply to the Federal Tax Service to receive a vacation.

How to properly arrange tax holidays for individual entrepreneurs

To register, you must contact the tax service and submit an application for reporting using a simplified system. This can be done no more than a month after registration. Based on the fact that an individual entrepreneur uses a simplified system in the first two years after registration, he can pay a zero tax rate.

Documents for registration

When contacting the tax service, a person needs to apply for the right to use the simplified tax system. No specific documents are required to complete the procedure.

The procedure for applying for vacation for an individual entrepreneur

To complete the procedure you need to complete several steps:

• Register an individual entrepreneurship in a field that meets regional standards;
• Within one month, switch to a simplified taxation system. To do this, you must submit a corresponding application to the tax service;
• Pay taxes at a zero rate.

A separate application for tax holidays is not required.

What payments will you have to pay, insurance premiums?

Vacations only mean paying tax at a 0 rate. This does not exempt the entrepreneur from paying other mandatory contributions such as:

1. Contributions to the pension fund of the Russian Federation for yourself and employees;
2. Contributions to the social insurance fund;
3. Payments for employees, etc.

Validity periods of tax holidays

Tax relief is valid for two years or two tax periods. You can receive them from 2015 to 2020.

What types of activities are covered by the benefit in Moscow?

Moscow is among the regions in which the right to receive benefits is granted. As of 2018, the types of activities that fall under regional laws include production:

• Clothes;
• Sporting goods;
• Products related to food;
• Finished furniture;
• Various types of shoes.

The list of entrepreneurial activities under the simplified system does not end there.

Other regional features of tax holidays

Despite the fact that tax holidays have been approved at the federal level, the decision to introduce them in a particular subject is made by regional authorities. In this regard, requirements for individual entrepreneurs in different regions may differ. In order to find out whether such benefits apply in a certain region, you need to contact the tax service for information. This can be done either in person or over the telephone. In addition, it is necessary to take into account that the types of activities eligible for the benefit may also differ depending on the region.

If an individual entrepreneur ceases its activities during tax holidays, the consequences

If a person decides to stop his entrepreneurial activity while receiving the benefit, its effect in relation to him will be terminated. After re-registration, the citizen will not receive the right to the benefit. In addition, the benefits are terminated if the individual entrepreneur violates the rules established by the regional authorities.

When registering an individual entrepreneur, you should definitely clarify whether the relaxations described above apply in the region. If they do, and the individual entrepreneur meets all the necessary requirements, then it’s worth taking advantage of this opportunity.