This content is licensed under Creative Commons Attribution/Share-Alike License 3.0 (Unported). That means you may freely redistribute or modify this content under the same license conditions and must attribute the original author by placing a hyperlink from your site to this work https://planetcalc.com/2074/. Also, please do not modify any references to the original work (if any) contained in this content.
Let's assume you have a website or any other project that brings a small income.
As a law-abiding citizen, you are required to pay taxes on income received.
Nothing could be easier - calculate 13%, submit a declaration and pay.
But then the day comes when your small income becomes more and you decide to registrate as sole proprietor to save some money on taxes as you will pay just 6% of your profits and it seems twice less of your current payment.
But don't get too hasty and use our calculator to see if it's profitable.
Since 2012, it's profitable to be a sole proprietor as you make 11k in a month. The fact that a sole proprietor should allocate fixed payments to the Pension Fund and social insurance funds, which make up a total of 17208.25 rubles a year in 2012.
Payments depend on the minimum wage, which is regularly raised and in next year will grow by 13%.
From 2013, payments of sole proprietors to the pension fund are doubled. And since 2015 it was planned to be tripled, but common sense prevailed. In 2014, a differentiated scale of contributions was introduced.
Doubling was canceled and instead when your profits excess 300k per year sole proprietor pays additional 1% to Pension Fund. The following chart shows the monthly income that makes it profitable to be a sole proprietor by years.