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The Federal Law №8-FZ dated 06.02.2020 amended Articles 346.43 and 346.45 of the second chapter of the Tax Code of the RF.
Item 2 of Article 346.43 of the Tax Code of the RF contains a list of types of business activity to relation of which the Patent tax system (PTS) is applied.
As adopted by the amendments, PTS will be applied to the following activities since 01.01.2021:
- photography services;
- activities in the field of preschool education and additional education of children and adults;
- services for preparation and delivery of dishes for celebrations and other events;
- services for slaughtering and transportation of livestock;
- plant growing, animal breeding and services in these areas.
To establish a single amount of annual income that is possible to receive, the subjects of the Russian Federation are given the right to combine the types of entrepreneurship in animal breeding and plant growing in one patent, as well as services in these areas of activity.
It is worth reminding that the Patent tax system is a special tax regime, in which sole proprietors pay one tax at a fixed tax rate and are exempt from other taxes. Sole proprietors can apply the patent tax system, whose average number of employees does not exceed 15 people for the tax period, for all types of business activity.
The Patent tax system cannot be applied to:
- business activity within the framework of a simple partnership agreement, joint venture agreement or fiduciary management agreement;
- activities on sale of goods, being not related to the retail trade (excisable goods and products, being liable for obligatory labeling of means of identification).
More information about the Patent tax system can be found in our publication «Patent tax system in 2015».
Subscribers of the Information and Analytical system Globas have the opportunity to get acquainted with the activity of all sole proprietors registered in Russia. In total, the system provides information about more than 4 million active and 11 million inactive sole proprietors.
Information agency Credinform presents ranking of Russian manufacturers of bread and bakery products. Experts of the agency, using Information and Analytical system Globas, have selected TOP-10 manufacturers of bakery products in terms of revenue for 2018, analyzed tax payments of every enterprise to the budget of Russia and defined characteristics of the market.
Bread is one of the oldest food products in the world. For Russians bread has always been essential element. It has great history and is connected with plenty of traditions and memories. During the Leningrad Blockade it helped to save many lives. Although, in terms of ingredients it hardly resembled familiar food product
Before the transition to postindustrial society hard and menial labor prevailed in Russia, and bread was the only available product for workers to recover strength and be sated without burdening a budget.
Bread is a good of first priority, and its` production is one of the most important industries in any country.
According to the data of the Information and Analytical system Globas, TOP-10 companies take only 11,2% of the market in terms of comprehensive annual revenue, that amounted to 345,8 billion RUB, following the results of 2018.
Remarkably, revenue of companies is distributed equally, and industrial concentration is moderate, new manufacturers often appear at the market. TOP-60 companies take only 38,5% of the industry.
| № | Manufacturer name | Revenue for 2018, billion RUB | Tax payments for 2018, billion RUB | |
| 1 | KARAVAI Saint Petersburg |
6473,0 | -6,5% | 558,4 |
| 2 | BKK Kolomenskiy Moscow |
6367,8 | +32,0% | 431,8 |
| 3 | LIMAK Lipetsk |
5873,2 | -2,0% | 457,9 |
| 4 | PERVYI KHLEBOKOMBINAT Chelyabinsk |
4149,6 | -0,4% | 564,9 |
| 5 | THE GROUP OF COMPANIES DARNITSA Saint Petersburg |
3947,6 | -0,3% | 74,7 |
| 6 | CONFECTIONARY AND BREAD FACTORY CHERIOMUSHKI Moscow |
3497,7 | +5,8% | 314,4 |
| 7 | Lantmannen Unibake Egoryevsk (Moscow region) |
3291,7 | +30,0% | 159,4 |
| 8 | SMAK Ekaterinburg |
2952,9 | +9,2% | 213,2 |
| 9 | VOLZHSKY PEKAR Tver |
2791,5 | -6,1% | 265,4 |
| 10 | KHLEBOZAVOD №28 Moscow |
2357,3 | +13,0% | 100,1 |
The largest Russian manufacturer of bread and bakery products is KARAVAI (6,4 billion RUB), located in Saint Petersburg, share of its`s production is 1,9 % of the total revenue in the industry. Amount of tax payments of the company to the budget of Russia amounted to more than 550 million RUB in 2018. For one year revenue has decreased on 6,5%, and industrial volume on 2%.
Decrease in revenue of the majority of Russian manufacturers is related to reduction of bread products consumption (Picture 1). Since 2010-2018 consumption has decreased on 3,3%, and following the results of 2019 and 2020, continuation of the existing trend should be expected. Decrease in consuming of bakery products among Russians is connected with pursuance of healthy lifestyle and switch to dietetic, light, healthy nutrition. Ration is also becoming more diversified: bread is replaced with other available food products.
Picture 1. Dynamics of bread and bakery consumption (on a per capita basis) in 2010-2020, kgSource: Unified Interdepartmental Statistical Information System, calculation by Credinform
However, part of the top group demonstrate increase in revenue on 5, 9 and even 30%.
With the help of the instrument of the Information and Analytical system Globas – Сompany's position in the industry, the reason for increase in revenue of Moscow bread-baking factories was figured out. The point is that companies started leaving the market for various reasons. Amount of liquidations has increased on 26,5%. Vacant shares of the market are distributed between large manufacturers of bread and bakery products, thereby promoting increase offtake of products and sales.
Therefore, bakery and confectionary factories Kolomenskoe (2-nd place; 6,4 billion RUB), Cheriomushki (6-th place; 3,5 billion RUB) and Khlebozavod №28 (10-th place; 2,4 billion RUB) demonstrate revenue growth, on the back of general reduction of consumption.
Lantmannen Unibake company takes seventh place in the ranking (3,3 billion RUB). Revenue of the enterprise has increased on 30,0% for a year. Growth of an indicator is mainly connected with the uniqueness of the sold product range. The company produces burger, hot-dog and sandwich rolls, for cafes and fast food restaurants. These products are of great demand among Russian people, as it is fast, cheap and tasty.
Bread-baking manufacture is one of the most important industry of Russia not only because of good of first priority production, but also in terms of amount of tax payments to the state budget. 3,1 billion RUB as taxation of the TOP-10 manufacturers of bread-baking products was entered to the Treasury of the RF in 2018.
Results of the ranking have shown that bread-baking industry still remains vitally important for the country, in spite of general decrease in bakery products consumption among the population. In general, bread and bakery products manufacturing industry is one of the most well-balanced in the economy. Shares of companies are equally distributed between the market participants and new manufacturers appear.