This is important for entrepreneurs to know.

SPECIAL TAX REGIME - PATENT TAXATION SYSTEM

The subjects of the patent system of taxation are patent holders, peasant (farm) enterprises engaged in retail trade, provision of services, execution of works, production and sale of their own products.

SUBJECTS OF THE PATENT SYSTEM AT THE RIGHT:

1. Do not use cash registers (machines)

2. Do not keep accounting records and prepare financial, statistical and tax reports.

3. Do not submit to the tax authority a tax return on income derived from activities under the patent system of taxation

4. To attract employees registered as individual entrepreneurs under civil law contracts, but not more than 5 (five) people

5. To carry out several activities, but not more than 5 activities

6. Apply simultaneously the patent system and the simplified tax system

SUBJECTS OF THE PATENT SYSTEM HAS NOT RIGHT:

1. To carry out retail trade in food and non-food goods in relation to legal entities

2. To carry out types of activity on the patent system of taxation at the conclusion of a simple partnership agreement (agreement on joint activities) or a contract of trust management of property

3. To carry out retail trade in a stationary trading network, the area of ​​which exceeds 130 sq. m. for the countryside and 100 sq.m. for the city;

4. To carry out foreign economic activity in the form of import of goods, if the customs value of these goods exceeds the amount of USD 50,000. this year

5. To carry out activities for the production and retail trade of prohibited types of goods (list of goods in Appendix No. 1)

Taxes and fees paid by subjects of the patent system of taxation

Patent holders who are the subjects of the patent system pay a monthly advance payment in the form of an aggregate tax payment to the following taxes:

a) tax on potential annual income - in the amount of 3 percent.

The tax base for calculating this tax is imputed income, the amount of which depends on the type of business activity.

b) social payments, namely:

- unified social tax - in the amount of 14 percent;

- Mandatory insurance premium - in the amount of 3 percent.

The patent holder pays a single social tax and a compulsory insurance premium for himself and for involved persons.

c) income tax paid for involved person - in the amount of 5 percent. Patent holders are exempt from income tax.

The tax base for the calculation of social payments and income tax is 1 minimum wage. In the case of specifying the amount of actual wages, the tax base for these taxes is calculated based on the actual amount of remuneration (the calculation of the total tax payment is given in Appendix No. 2).

Payment of the total tax payment under the patent system replaces the payment of income tax, the unified social tax and the mandatory insurance premium.

Within the framework of the patent system, privileges in the form of 50%, 70%, 75%, 90%, etc. are provided for a separate category of persons (such as: members of large families, pensioners, disabled people of I, II and III groups, etc.) reduce social payments and income tax.