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Triumphantly bright: how to apply the tax on professional income

What should an individual entrepreneur do during one month after registration: ⠀

1️⃣ The self-employed must abandon other special tax payment mode. An individual entrepreneur cannot combine simplified tax payment, unified tax on imputed income and tax on professional income. This is prohibited by law. There is one month from the date of registration to discard those. ⠀

2️⃣ If the income of an individual entrepreneur for the year exceeds 2.4 million rubles, one must again select the special tax payment mode. The tax on professional income has a limitation: income for the year should not exceed 2.4 million rubles. If an individual entrepreneur earns more, he will not be able to use this special regime. The tax office will terminate one's registration as a self-employed person and send a notification to the personal account and to the application. ⠀

3️⃣ Income can not be reduced because of expenses. Self-employed entrepreneurs can not take into account their costs: neither for gasoline, nor for agents - none at all. Tax must be paid from the entire amount received from the client and indicated in the check. Even if the profit is only 30%, the tax will still be 4 or 6% of the revenue. 

4️⃣ It is not necessary to pay insurance premiums, but only while there is a registration for the tax on professional income. An individual entrepreneur who pays a tax on professional income is not obliged to pay insurance premiums for pension and medical insurance. But only during the period when you were registered as self-employed. 

5️⃣ The self-employed can combine business and apartment rent.If you are self-employed and your main activity falls under the preferential mode, you can engage in other activities in this mode - for example, rent out an apartment. Then the tax on income from individual employers will be 4%, and the declaration for the year will not have to be filed.