# When it becomes profitable to pay the tax as a sole proprietor in Russia?

The calculator allows you to compare the taxes paid by an sole proprietor in the simplified taxation system and the individual.

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#### Timur

Created: 2015-09-10 14:23:12, Last updated: 2021-03-20 20:15:00

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 register as a 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.

#### Sole proprietor, taxes compared to the personal income tax.

Estimated income for calendar month
Estimated expenses per calendar month
Digits after the decimal point: 2
Taxes of Simplified Tax System Income 6%

Taxes of Simplified Tax System-Expenses 15%

Taxes of the individual personal income tax 13%

Since 2012, it's profitable to be a sole proprietor as you make 11k in a month. 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 the 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, the sole proprietor pays an additional 1% to Pension Fund. The following chart shows the monthly income that makes it profitable to be a sole proprietor by years.

#### Modeling minimum deductions SP

Digits after the decimal point: 2
Monthly income
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