Entrepreneurs on OSNO have the right to reduce personal income tax by accounting for tax deductions as part of expenses. These include professional, social, standard and property deductions.
It is necessary
- - calculation of the amount of expenses by which the received income can be reduced;
- - calculation of the amount of income that is subject to personal income tax.
Instructions
Step 1
Initially, you need to calculate the amount of income received in the course of business. They are made up of the sum of all receipts to the cashier of the individual entrepreneur or to his settlement account for the goods shipped and services rendered. This includes advances received from customers. An entrepreneur, when calculating personal income tax, takes into account other incomes that may not be related to his business. For example, received from the sale of an apartment or car.
Step 2
Next, calculate the costs associated with the business. They must be documented and aimed at generating income. Otherwise, it will not be possible to take them into account. The group of professional deductions includes material costs (they are recognized as materials are written off for production and their sale), costs of labor and social and pension insurance of employees), depreciation costs, and other costs (advertising, rent, etc.) …
Step 3
In addition to professional deductions, an entrepreneur can count on accounting for other groups of deductions. These include standard deductions for certain categories of citizens and for children, social deductions for treatment and education, property deductions when buying a home or mortgage interest. All categories of deductions must be summed up with professional ones. This amount will represent all expenses for which income is to be reduced.
Step 4
After the amounts of expenses incurred and income received are known, it remains for you to calculate the taxable base and personal income tax on its basis. To do this, subtract expenses from the amount of income and multiply the resulting number by 13%. For example, the entrepreneur's income was 3 million rubles. Business expenses - 1.5 million rubles. He has two children (for each he is entitled to a deduction of 1400 rubles). He also spent 100 thousand rubles on his training. The calculation of personal income tax will look like this: (3,000,000- (1,500,000-1400 * 2-100,000)) * 0.13 = 181,636 p.
Step 5
If the calculations showed that expenses exceeded income, then the tax base will be zero. Accordingly, you do not need to pay personal income tax. But keep in mind that individual entrepreneurs cannot carry forward losses to the next tax period.
Step 6
If you are unable to document the costs incurred, then you are entitled to a fixed amount of professional deductions. Its size is 20% of the amount of income. For example, the income of individual entrepreneurs amounted to 1 million rubles. To calculate personal income tax, you must first determine the taxable base. It will be equal to 800 thousand rubles. (1,000,000- (1,000,000 * 0, 2)) and then multiply it by 13%. 104,000 thousand rubles - this will be the personal income tax that must be paid to the budget. Many entrepreneurs wonder if they can take advantage of a professional deduction of 20% and reduce personal income tax by the amount of fixed payments to the FIU. This possibility is not provided, since it is considered that insurance premiums have already been included in the indicated deductions.
