Patent for individual entrepreneurs in 2021

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

The latest news discusses the likelihood of the abolition of the patent taxation system following UTII. Experts are confident that they will not cancel the patent for individual entrepreneurs in 2021, but it is important to know what changes have been made at the legislative level.

What happens in taxation

In June 2020, a bill was introduced to the State Duma, which proposed changes caused by the abolition of UTII. The project considers the possibility of introducing a reduction in the cost of a permit by the amount of insurance premiums (by half, if an individual entrepreneur has employees, and without restrictions, if there are none).

The cost of the patent can be reduced for sick leave payments and for voluntary insurance of employees (not on their own). A patent for an individual entrepreneur in 2021 means no declarations. Therefore, a decrease in its value will be carried out by filing a notification. What other changes are expected to be introduced, you can find out with a careful study of the bill:

1. Having multiple patents means that you can reduce the value of any one. If the contributions for the reduction are more than the value of the selected document, they can be deducted from the other.
2. Even if, due to ignorance of the new rule, extra funds are paid, they will be returned or deducted from future contributions.
3. Another innovation is an increase in the area for catering and retail trade. The transition to PSN will retain 150 "squares" previously allowed on UTII (the patent limits the size of 50 square meters. M). This was done in order to remove restrictions on the STS and not force entrepreneurs working in cafes or shops to switch to STS.
4. The expansion of the types of activities is expected, but in most cases it will occur due to the removal from the general list in a separate sub-item.
5. Services of parking lots, placement and distribution of advertisements and leasing of real estate that is not owned will be added. Previously, ownership was a prerequisite.
6. Presumably, the list of marked goods prohibited for sale will not only not decrease, but will expand.

The list for individual entrepreneurs will increase from 63 types of entrepreneurial activity to which a patent is now entitled in 2021 to 87, but in this case it is worth considering whether these changes are positive or not. Removing the type of activity from one, general sub-clause, into a separate one means that in some cases entrepreneurs will have to pay not one, but two or three patents.

For example, repairing watches and changing batteries will become two separate activities. But the repair and maintenance of certain types of household equipment, while maintaining the maintenance point, means the inability to use the PSN.

Problematic moments

For several years, there have been talks about the probable abolition of UTII, there have been calls in advance to choose a different, convenient taxation system. The changes introduced gave false hope for the prolongation of the taxation system, although they significantly limited the scope of entrepreneurship:

1. After all the cancellation took place, it became necessary to switch to a tax payment system, which would be just as convenient, but the patent system did not quite satisfy the requirements of entrepreneurs.
2. The expected happened - people began to leave entrepreneurial activity or go into the category of self-employed.
3. The introduction of the bill is an attempt to prevent the inevitable consequences of canceling UTII, which was considered unprofitable for the state. But it suited many businessmen, and other systems were not entirely suitable. The transformations planned in the project are still awaiting confirmation. It is likely that they will be supplemented or reduced.

The significant difference between UTII and PSN, despite constant reminders of their obvious similarities, are as follows:

• the inability to carry out production, although there is a clause about services of a production nature;
• restrictions on the number of employees;
• limiting the amount of maximum income;
• the need for a permanent extension of the validity of the permit.

A positive point is the replacement of VAT, personal income tax and property tax with a single tax. However, the import of goods into Russian territory means the payment of VAT on a general basis.

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Proposed changes not included in the bill

Legislators and entrepreneurs have repeatedly pointed out the need to develop a family patent. In the current situation, family members sometimes work with the entrepreneur. This helps to significantly save on wages and insurance premiums for employees, however, it is contrary to labor laws. They have no legal status, no retirement experience is accrued, because insurance premiums are not paid.

A useful initiative would allow people involved in the family business to move out of the gray zone. However, she did not receive the support of legislators either in 2020 or earlier.

The Duma discussed potential ways of developing family entrepreneurship, where it was proposed to develop criteria for family businesses and simplify taxation in this area. However, it is still not clear whether the family patent will be amended in the current PSN system, or whether a separate taxation system will be developed for such businesses.

For an individual entrepreneur who previously worked at UTII, a patent is the closest system in structure. What changes are expected in 2021:

• the planned granting of the right to sublease real estate (not provided for PSN);
• expansion by 100 meters of the area of a small shop or cafe (with the current limit of 50 sq. m);
• introduction of new types of activity into the previously established list of permitted ones.

Those individual entrepreneurs who are considering the possibility of using the PSN should take into account that the regional authorities cannot limit their number, but are entitled to expand the list. Perhaps in the region of residence they have other areas for entrepreneurial activity.

Outcomes

In case of a positive verdict on the amendments to the law "On the patent taxation system", the individual entrepreneur will have additional opportunities for its application:

1. The list of permitted activities will be expanded (from 63 to 87).
2. It will be possible to reduce the cost of a patent by 50% due to insurance premiums for employees.
3. The concept of a family patent is being developed.
4. Other measures are outlined to increase the functionality and demand for PSN.