How to obtain a patent to work in the Russian Federation for foreign citizens in 2021

What is the patent tax system

In 2013, a new taxation system was introduced in Russia, called the patent tax system (PSN). It can only be used by individual entrepreneurs engaged in certain types of activities, which will be discussed below. The tax regime was designed specifically to make doing business easier through the use of a simplified income accounting system and the absence of tax reporting, which is typical of other systems.

To carry out activities under this taxation regime, it is necessary to register an individual entrepreneur and submit an application to the tax authority (hereinafter referred to as the Federal Tax Service, the Federal Tax Service, the Federal Tax Service). After this, the businessman will be issued a special permit - a patent. It is a special document that defines the scope of the entrepreneur’s commercial activities. The goal that legislators pursued when introducing PSN was to bring individuals who were engaged in business without registering as an individual entrepreneur “out of the shadows.”

Patent cost

To purchase a patent, you need to calculate whether it will be beneficial in comparison with other types of taxation, for example the simplified tax system. A peculiarity of the cost of a patent is that the tax amount is calculated not from the income received, but from the potential income.

The easiest way to calculate the cost of a patent is on the website of the Federal Tax Service:

On the website, fill in the required fields in a special form and click “Calculate”.

There is also such a thing as “ Tax holidays ”. Individuals registered as individual entrepreneurs for the first time, after the entry into force of the regional law on tax holidays, can work for up to two years at a zero tax rate . This means that the patent will be issued free of charge. To do this, you need to choose the direction of business that local authorities consider necessary for development in their territory.

Who can work under a patent in 2021

The legislation determines that only individuals who are individual entrepreneurs can use the preferential tax regime. Legal entities cannot use the patent system in their work. In addition, PSN is not used in relation to types of commercial activities under a simple partnership agreement or trust management of property.

Conditions for switching to PSN

You can start working under the new tax system at any time. The only thing you need to know is that if a merchant’s business is diverse, then you need to obtain permission for each type of business activity. In order to switch to PSN in 2021, a citizen must:

engage in a business that is on an officially approved list;
when using hired labor, involve no more than 15 people in the work;
have revenue for the calendar year of no more than 60 million rubles;
work in the region where the permit was obtained.

Classifier of types of entrepreneurial activities

The business that can be conducted using a patent in 2018 is regulated by the Tax Code and regional legislation. Areas of business that fall under the PSN are identified using the Classifier of Types of Entrepreneurial Activities (KVPDA). The document was approved in 2013 (No. ММВ-7-3/ [email protected] ) and is a systematic collection of names of types of business activities with their code designation.

Types of patents for individual entrepreneurs for 2021, reflected in the KVPDP, have the following digital designation - AA BB SS, where:

AA is the code of the type of activity reflected in the patent, regardless of the region. If local authorities introduce an additional type on the territory of a subject that is not reflected in the Tax Code, the digital designation 99 is used (compare: 03 - always only hairdressing and cosmetic services, 63 - repair of computer and switching equipment/equipment).
BB is the generally accepted code of the subject of the Federation (Moscow - 77, St. Petersburg - 78, Moscow region - 50).
SS – differentiation of the type of entrepreneurial activity. If there are no additional conditions for doing business, the value 01 is applied. If detail is established by law, other values are applied: 02, 03, 04, etc. Example: pet grooming (Moscow) - 21 77 05;
toy repair (Moscow) – 21 77 12.

In addition, those types of activities under a patent that are assigned the value AA 99 are detailed here. Example:

translation from one language to another (Moscow) – 99 77 01;
copying services (Republic of Buryatia) – 99 03 02.

What to prepare to obtain a patent

The immigrant must submit all necessary certificates, papers, and certificates to the migration department to obtain a patent no later than 30 days after entering the Russian Federation. To obtain a work patent, a foreign citizen must submit the following documents:

An application completed in clear handwriting or using technical means.
Identity document.
A policy issued by an insurance company with which the migrant has voluntarily entered into a health insurance agreement, or an agreement between the migrant and a medical institution for the provision of medical services. The duration of the agreements depends on how long the migrant plans to live and work in the Russian Federation. But it should not be less than the period of residence of the migrant in our country
Migration card, the items of which were filled out by the immigrant at the border post. If the purpose of visiting Russia is work, then this should be reflected when filling out. If you indicate a different reason for the visit, this may result in a refusal to issue a patent. When this document is lost, the migration department has the right to find out the required information through its own channels.
A document proving that the foreigner is not a drug addict or a carrier of dangerous viral or bacterial diseases, including HIV.
An official certificate confirming the migrant’s ability to speak, write, read in the official language of Russia, knowledge of the history and legal foundations of the Russian state, necessary to work under a patent.
An official document proving that the immigrant has registered in the territory of the Subject of the Federation where he plans to work.

What taxes does it replace?

PSN is notable for the fact that the entrepreneur pays a one-time fee when obtaining permission. This provides for exemption from paying taxes to the budget, which must be deducted when doing business under other regimes. The declaration by an entrepreneur-taxpayer, according to Russian legislation, is submitted in the form of a Book of Income and Expenses, but only at the request of employees of the Federal Tax Service. A patent replaces three types of taxes:

Value added tax. If an entrepreneur imports products into the territory of the Russian Federation from abroad, such an operation is subject to VAT in the general manner.
Personal income tax. Income received while conducting business under the patent regime is not subject to personal income tax.
Property tax for individuals. It is not paid from property used to conduct business under a patent. The exception is property on which tax is paid at cadastral value.

Combining PSN with other taxation systems

The transition to the patent regime is voluntary. The legislation does not oblige the termination of activities under another tax regime, but allows them to be combined. Entrepreneurs do not have the right to use a different taxation regime in relation to the business that is listed in the patent. An exception is the names specified in subparagraphs 10, 11, 19, 32, 33, 45, 46, 47 of paragraph 2 of Article 346.43 of the Tax Code of the Russian Federation (including retail trade, catering services and transportation of passengers by road).

For a better understanding, you can consider the following examples:

The individual entrepreneur has two clothing retail facilities with an area of 43 square meters. m and 120 sq. m. In relation to the first, PSN is applied. For the second, you can use UTII (single tax on imputed income), general (OSNO) or simplified (STS) modes - at the choice of the businessman himself, since its area exceeds the 50 square meters allowed for the use of PSN. m.
A businessman rents cars. This type of activity is subject to a patent. He wants to open a store selling automobile oils. Since this product is excisable, PSN cannot be used in this case, but OSNO or simplified tax system can be used.

Patent localization

A foreign citizen should know: the validity of a work patent for foreign citizens has a number of restrictions. One of them is territorial. The bottom line: a foreigner is territorially tied to the subject of the Russian Federation where the permit document was issued. That is, having a patent in hand, where the Moscow region is indicated, a migrant does not have the right to work in another region.

Important! If it turns out that an immigrant worked in a region that is not indicated in the permit, then this threatens him with the collection of funds and deportation from Russia.

Types of activities covered by patent in 2021

Article 346.43 of the Tax Code provides a list of works for which PSN can be used. In each subject of the Federation, additional types of patents for individual entrepreneurs may be defined for 2018 by issuing the appropriate law, if additional positions do not contradict the law. To date, the list of those approved for use with the use of PSN includes:

Repair and sewing of clothing, fur and leather products, hats and textile haberdashery products, repair, sewing and knitting of knitwear.
Shoe repair, cleaning, painting and sewing.
Hairdressing, cosmetic services.
Dry cleaning, dyeing, laundry services.
Manufacturing and repair of metal haberdashery, keys, license plates, street signs.
Repair and maintenance of household radio-electronic equipment, household machines and household appliances, watches, repair and manufacture of metal products.
Furniture repair.
Photo studio, photo and film laboratories services.
Maintenance and repair of motor vehicles and motor vehicles, machines, equipment.
Providing motor transport services for the transportation of goods by road.
Providing motor transport services for transporting passengers by road.
Repair of housing and other buildings.
Production of installation, electrical, sanitary and welding works.
Glazing of balconies and loggias, cutting glass and mirrors, artistic glass processing.
Training the population through courses and tutoring.
Supervision and care of children and the sick.
Reception of glassware and secondary raw materials, with the exception of scrap metal.
Veterinary services.
Leasing (hiring) of residential and non-residential premises, dachas, land plots owned by an individual entrepreneur by right of ownership.
Production of folk arts and crafts.
Other production services:
making felted shoes;
production of agricultural implements from customer’s materials;
engraving work on metal, glass, porcelain, wood, ceramics;
production and repair of wooden boats;
toy repair;
repair of tourist equipment and inventory;
plowing gardens, sawing firewood;
repair, production of spectacle optics;
production and printing of business cards, invitation cards for family celebrations;
bookbinding, stitching, edging, cardboard works;
charging gas cartridges for siphons, replacing batteries in electronic watches and other devices.
Production and restoration of carpets and carpet products.
Repair of jewelry, costume jewelry.
Chasing, engraving of jewelry.
Monophonic and stereophonic recording of speech, singing, instrumental performance of the customer on magnetic tape, CD, re-recording of musical and literary works on magnetic tape, CD.
Residential cleaning, housekeeping.
Residential interior design and decoration services.
Conducting physical education and sports classes.
Porter services at railway stations, bus stations, air terminals, airports, sea and river ports;
Paid toilet services.
Services of chefs for preparing dishes at home.
Transportation of passengers by water transport.
Transportation of goods by water transport.
Services related to the sale of agricultural products (storage, sorting, drying, washing, packaging, packing, transportation).
Services related to the maintenance of agricultural production (mechanized, agrochemical, land reclamation, transport work).
Green farming and decorative floriculture services.
Management of hunting and hunting.
Engagement in medical or pharmaceutical activities by a person licensed for these types of work.
Carrying out private detective activities by a licensed person.
Rental services.
Excursion services.
Ritual services.
Funeral services.
Services of street patrols, security guards, watchmen, watchmen.
Retail trade carried out through stationary retail chain facilities with a sales floor area of no more than 50 square meters for each trade facility.
Retail trade carried out through stationary retail chain facilities that do not have sales floors, including through non-stationary retail chain facilities.
Catering services provided through public catering facilities with a customer service area of no more than 50 square meters for each catering facility.
Catering services provided through catering facilities that do not have a customer service area.
Slaughter, transportation, distillation, grazing.
Production of leather and leather products.
Collection and procurement of food forest resources, non-timber forest resources and medicinal plants.
Drying, processing, canning of fruits and vegetables.
Production of dairy products.
Production of fruit and berry planting materials, growing vegetable seedlings and grass seeds.
Production of bakery and flour confectionery products.
Commercial, sport fishing and fish farming.
Silviculture and other forestry activities.
Written and oral translation.
Care for the elderly and disabled.
Collection, processing, disposal of waste, including processing of secondary raw materials.
Cutting, processing, finishing of stone for monuments.
Provision of services (performance of work) for the development of computer programs and databases (software and information products of computer technology), their adaptation and modification.
Repair of computers and communication equipment.

Patent review without IP registration

However, this does not exempt the entrepreneur from maintaining an accounting book. After depositing your income, the document must be submitted to the tax office for verification.

Thus, patent holders come under strict government control. Starting from 2021, you can obtain a patent without registering an individual entrepreneur. Please note: this opportunity is available only to those entrepreneurs who independently carry out their activities, without hiring employees.

Every year PSN undergoes positive changes. A patent without registration of an individual entrepreneur in 2021 includes 47 types of activities. In 2021, this taxation system will completely replace UTII.

To obtain a patent, you need to submit an application to the INFS.

If you want to apply for it for next year, you can submit your application from December 1st.

On its basis, a patent is issued, the owner of which is automatically registered as a self-employed person.

This status is retained for the duration of the patent. One of the best ways to reduce is to register a business through the MFC. Find out what the procedure for registering an individual entrepreneur with the Pension Fund looks like step by step from. Payment is made in accordance with the specified deadlines. Thus, if the patent term is 6 months or less, then payment must be made during this period, but not later than the end of the term.

If the patent is valid for 6-12 months, then the payment is divided into two parts: a third for 3 months, and the rest until the end of the term.

It is worth noting that the cancellation of individual entrepreneur registration is an undoubted advantage for promoting the new taxation system. However, this innovation will not please all self-employed citizens. The fact is that the total amount of insurance premiums and expenses for a patent is 20,700 rubles.

Such deductions will be a strong blow to the wallets of entrepreneurs operating in small towns or villages, as well as those whose income is seasonal.

It is expected that the new tax system will attract freelancers who may well pay for the patent and related expenses, but did not register an individual entrepreneur in order to avoid liability for obligations with all their property

How much does a patent cost for an individual entrepreneur?

Before purchasing a permit, it is important to calculate its exact cost. Based on the data obtained, you can compare whether it is profitable to work under the PSN or whether it is easier to use another tax regime. One of the features of the patent system is the upfront payment of the cost of permission. The contribution amount is calculated not based on the actual income received, but on the potential income. The amount of expected revenue is determined by local legislation for each specific type of activity.

In addition to the expected income, other indicators influence the cost of the permit:

validity period of the document;
number of employees;
number of vehicles;
presence of several retail outlets.

Tax calculation procedure

The cost of a certain type of patent for an individual entrepreneur for 2021 depends on the basic income, the amount of which is calculated individually for each type of business in a particular region, as well as the calendar period for which the permit is issued. The annual tax rate is fixed at 6%. Based on this, the calculation formula will look like this:

SP = BD x 6%, where;
SP – patent cost;
DB – basic profitability.

Provided that the individual entrepreneur acquires a permit for a period of less than one year, the result obtained is divided by 12 (the number of months in the year), and then multiplied by the required number of periods:

SP = BD x 6% / 12 x KM, where;
SP – patent cost;
BD – basic profitability;
KM – number of months.

Example:

A businessman from Moscow plans to repair shoes in 2021. The basic profitability according to the law is 660 thousand rubles. The cost of a permit for a year will be:

660,000 x 6% = 39,600 rub.

If the activity falling under the patent, the individual entrepreneur will be carried out for only 6 months, the result obtained must be divided by 12 and multiplied by 6:

39,600 / 12 x 6 = 19,800 rub.

If it is difficult to make the calculation yourself, you can use the online calculator located on the official portal of the Federal Tax Service. It can be used by any citizen who wants to obtain information about the cost of a patent, regardless of whether it is registered or not. The scheme of working with the calculator does not cause any particular difficulties and consists of filling out the following fields:

Period. The calendar year in which the business is expected to be conducted is selected.
Period of use. Here you enter the number of months per year during which the entrepreneur will work.
Federal Tax Service. You must select the name of the tax office, for example, 77 - Moscow city.
Municipality. The specific area in which the business will be conducted is determined.
Kind of activity. From the list you must select the direction in which the merchant will work.
Meaning. Filled in when selecting certain types of activities, for example, to indicate the number of trade objects, etc.
Calculate. After filling out all the fields, you need to click the “Calculate” button, after which the program will issue the amount required for payment.

Example:

Hypertension - what is it?
Corpus luteum cyst of the ovary: symptoms and treatment
What are calcifications in the right and left lungs, why are they dangerous?

An entrepreneur from Moscow plans to engage in rental services in 2018 for 7 months. Enter data:

period – 2018;
period of use – 07;
Federal Tax Service - 77 - Moscow city;
municipal formation - for example, Administration of the municipal formation of Tverskoy;
type – rental services.

After clicking the “Calculate” button, information will appear on the screen that the cost of the patent for this period is 34,650 rubles, and the tax is paid in two parts:

RUB 11,550 – within 90 calendar days from the date of issue of the patent;
RUR 23,100 - until the permit expires.

Tax holidays

Russian legislation may establish a zero tax rate – tax holidays. A free patent is issued for a period of 2 years from the date of opening your own business, provided that:

a citizen is registered as an individual entrepreneur for the first time;
activities are carried out in the social, scientific and production spheres, including the provision of consumer services to the population.

Tax holidays are in effect until 2021. In addition, for merchants engaged in business in the Republic of Crimea and the city of Sevastopol, until 2021, the tax contribution rate for all types of commercial activities or individual positions can be reduced to 4% (instead of the legally established figure of 6%). Such a relaxation for individual entrepreneurs is recorded in the Tax Code of the Russian Federation - clause 2 of Art. 346.5.

What law determines the legal status of an immigrant applying for a patent to work in Russia?

In order for a migrant to have fewer difficulties in obtaining a patent to work in Russia, it is necessary to have legal information on this issue. You can get the missing information by reading the regulatory documents regulating this issue. All basic information on how to obtain a work patent, its validity period, the rights and responsibilities of foreigners receiving this document, the rights and responsibilities of the body responsible for how the registration and issuance of a work patent for foreign citizens is contained in Article 13.3 of Federal Law No. 115 of July 25, 2002.

This is important to know: Features of registering foreign citizens for migration registration in the Russian Federation

How to switch to a patent tax system

Entrepreneurs who wish to switch to PSN in 2021 (provided that the types of work being carried out under a patent for individual entrepreneurs are on the list of permitted ones) must complete the following steps:

Determine that the PSN applies to the business.
Complete the permit application.
Appear at the Federal Tax Service along with your passport to submit an application to the inspector.
Receive a receipt for documents acceptance.
In 5 days come for a patent.
If necessary, write an application for removal from the previous taxation system (if you do not plan to combine regimes).

Submitting an application on form 26.5-1

You can download the current application form for using PSN on the tax office website. The document consists of 5 pages, the first two of which are filled out by all applicants without exception, and the last - only under certain conditions (the business address is different from the registration address, the business is carried out using transport or in the field of catering and trade). The application form has the following blocks:

Page 1. Fill in the applicant’s details (full name, place of registration, contact phone number) and the period during which it is planned to engage in business (from 1 to 12 months).
Page 2. Name of business and activity codes for individual entrepreneurs 2021 according to the classifier, presence of employees and their number, tax rate (default - 6%).
Page 3 (Sheet A). Place of business. Filled in if it differs from the IP registration address. For example, a citizen is registered in Astrakhan, but plans to do business in Kaluga.
Page 4 (Sheet B). Data on vehicles that will be used by the merchant.
Page 5. (Sheet B). Information about objects used to conduct business.

Obtaining a patent

An application for a permit in 2021 can be submitted in person or through a legal representative who has a notarized power of attorney to the Federal Tax Service at the place of proposed business. The application is considered for a maximum of 5 working days, after which the entrepreneur must be informed of the decision. If the result is positive, the businessman receives a document and can begin running his own business.

If the decision is negative, the entrepreneur receives a written refusal, the basis of which may be:

incorrectly specified period;
the type of activity is not applicable for the use of PSN;
incorrectly filled in required fields;
violation of the conditions for the transition from the applied taxation system to the patent one;
presence of tax arrears paid under the PSN for previous periods.

A patent for a self-employed person or an individual entrepreneur – which is more profitable?

To decide whether to work as a self-employed person with a patent or register as an individual entrepreneur, you need to determine for yourself what is more profitable. Similarities between these types of business management:

A patent can be acquired by both an individual and an individual entrepreneur without appearing at the tax office during its validity period.
There is no need to prepare declarations and reports.
Payment of insurance premiums is required in both cases.
You don't have to do accounting.
Cash register equipment is not used for cash payments and non-cash payment using bank cards.
In both cases, the patent is valid until the end of the calendar year, that is, from 1 to 12 months.

Acquiring a patent by an individual is more expedient than registering an individual entrepreneur in several cases. For example:

The income from the business is still small and paying contributions to the Pension Fund and the Social Insurance Fund of Russia is not profitable.
The activity is unstable or seasonal.
A self-employed person runs his own business and does not need to hire employees.

How to open an individual entrepreneur on PSN from scratch in 2021

If a citizen only plans to become an individual entrepreneur and work under the patent tax system, he has the right to submit two applications to the Federal Tax Service at the same time. This is possible only if he is registered in the same region where he plans to conduct his business. If the registration differs from the place of future work, you must first submit an application for assignment of individual entrepreneur status at the place of registration, and after receiving the certificate, you need to file an application for a patent in the municipality where the business will be conducted.

The scheme for obtaining individual entrepreneur status and permission consists of the following stages:

Pay the state fee for registration as an individual entrepreneur.
Fill out an application for assignment of individual entrepreneur status.
Fill out an application to apply the patent tax system.
Take your passport, TIN and the documents listed above and appear at the Federal Tax Service at the place of registration (provided that the place of residence by registration and the place of business are the same).
Hand over the collected documentation to the inspector, receiving a receipt to this effect.
On the designated day, appear to receive permission and a certificate of assignment of individual entrepreneur status.

Alternative to a patent

Residents of regions participating in the experiment to introduce a tax on professional income can legalize self-employed activities without purchasing a patent. Freelancers of these constituent entities of the Russian Federation can come out of the shadows if they meet the same conditions as when working with the patent system. The main requirement is to notify the tax authorities about your activities.

Self-employed people with official status pay tax at the rate:

4% of income transferred by individuals.
6% of profits received from legal entities and individual entrepreneurs.

They also have the right to receive a deduction in the amount of 10,000 rubles. As long as the income does not exceed this amount, the self-employed must pay 3% or 4% of the income, depending on whether the customer is an individual or an individual entrepreneur.

Important! The special tax regime is not available to persons running a business involving hired labor or selling minerals and excisable goods.

A self-employed person does not need to purchase and install an online cash register and submit tax reports. They will be replaced by the My Tax mobile device application. Through it, checks are generated, which the freelancer must present to customers for payment. Based on them, the application will calculate your total income and calculate tax. This entire procedure does not require visiting the tax office or bank. It is enough to link any plastic card to accept payments and pay taxes.

The cost of a patent for self-employed citizens who are not individual entrepreneurs in 2021

To do this, you need to register your activities with the tax office.

Until 2021, it is planned to register the employed population on a voluntary basis. Afterwards, the methods for identifying “evaders” and their punishment for concealing income will be toughened. And patents will be issued forcibly. Patents for self-employed citizens in 2021 will be issued only after official registration with the Federal Tax Service.

The state promises to equate document holders to individual entrepreneurs and provide certain benefits:

Checks are issued through the program; no cash register is needed.
There is no accounting.
Obtaining a patent gives its owner certain rights: he can advertise and conduct legal business activities.
Reporting is generated and transmitted through the application based on financial receipts from current accounts. Filing a quarterly return is excluded.

Important!

The validity period of the permit is from one month to a year. After this time has expired, a new patent must be purchased. In relation to foreign citizens, the patent system has proven itself to be the best.

Therefore, similar employment conditions were introduced for Russians who are illegal entrepreneurs.

Article 217, paragraph 70 of the Tax Code of the Russian Federation identifies several types of activities available to the self-employed population, by registering which citizens are exempt from paying mandatory payments to the budget:

Care and supervision of minor children and the elderly.
Providing tutoring services.
Construction and repair work.
Help with housekeeping.

Holders of other professions, when carrying out entrepreneurial activities, will have to pay taxes and fees in full.

In the future, the list of activities permitted for self-employed people is planned to be expanded. It will include:

Shoe repair and sewing workshops.
Private grazing services.