A tax patent is a document that gives an individual entrepreneur the right to engage in a certain type of activity. Purchase of the patent means transition to the preferential tax treatment, i.e. 6% of the potential income.
In simple words, the entrepreneur acquires a patent from the tax office and thereby pays tax. The patent replaces VAT and personal income tax.
The entrepreneur can purchase any number of patents. The cost of the patent can be calculated on a special calculator of the Federal Tax Service.
- Only an individual entrepreneur can purchase a patent - there are no patents for legal entities.
- Individual entrepreneurs must have no more than 15 employees and annual income not exceeding 60 mln rubles.
- There is no need to keep accounting, prepare and submit financial statements - only income book is required to confirm compliance with the limit on the amount of income. However, IEs with employees need to submit reports on insurance premiums and personal income tax on income of employees.
- Insurance premiums must be paid as usual.
The patent is only valid in the region in which it is received. If you move, you have to get a new one. In each region, the authorities themselves determine the types of business for which the patent is issued. To find out more, on the website of the Federal Tax Service, select the region of interest and the section "Patent system of taxation" will present the regional law on the PTC with all the changes.
- There is a tentative list of activities falling under the PSN in the Tax Code.
- For some types of activities it is impossible to get a patent - their list is also in the Tax Code, and it is supplemented.
- An individual entrepreneur with employees reduces the cost of the patent by the insurance premiums paid for himself and for employees, but by no more than 50%. An individual entrepreneur without employees can reduce the patent by the full amount of insurance contributions paid for him/herself. The application to reduce the cost of the patent must be submitted to the Federal Tax Service.
- Property tax for real estate used in activities under a patent must be paid only at cadastral value. This refers to administrative and business and shopping centers, offices and other premises which are included in the special list in accordance with clause 7 of Article 378.2 of the Tax Code.
The patent system of taxation has been in effect in Russia since January 1, 2013.
Read the full article at The Firm's Secret.