Legislative changes

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.