From this year, unregistered private entrepreneurs conducting active commercial activities for personal interests will be invited to apply for a patent for the self-employed. The creation of a patent for self-employed citizens of the Russian Federation in 2021 should reduce the number of citizens among the population engaged in shadow activities. According to Rosstat estimates for 2021, the number of such entrepreneurs was about 20 million people. A new state initiative on self-employment is planned to be introduced by mid-2021.
Important! According to surveys conducted in mid-2021 by Research Me, approximately 70% of self-employed entrepreneurs are not ready to legalize their activities.
What is a patent for the self-employed?
A patent for self-employed citizens of the Russian Federation is a permit that gives a person the right to engage in labor activities without concluding an employment agreement with an employer and at the same time without registering his business as an individual entrepreneur.
Self-employment has not yet acquired legal status. In Federal Law No. 1032–1 of April 19, 1991, which establishes the concept of “employment of the population in the Russian Federation,” the expression “self-employment” is absent. However, in 2021, the President of Russia initiated several amendments to the current legislation regarding the legalization of the activities of certain categories of the population engaged in private labor activities.
From now on, if they have a patent, self-employed citizens, according to the law of the Russian Federation, are considered persons who provide for themselves financially independently.
Results
In conclusion, we note that registration by a self-employed citizen is of a notification nature. This can be done by sending a notification to the Federal Tax Service. It is also possible to register through the “My Tax” application or credit organizations. The application simplifies the procedures for issuing checks to clients, maintaining records and paying professional income taxes.
Sources:
- Tax Code of the Russian Federation
- Law “On conducting an experiment to establish a special tax regime “Tax on professional income” dated November 27, 2018 N 422-FZ
- Order of the Federal Tax Service of Russia dated March 31, 2017 No. ММВ-7-14/ [email protected]
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What privileges does a patent provide?
Both parties benefit: the state and citizens. For the state it will be reflected in the following:
- the number of officially identified unemployed will be reduced;
- the established patent system will become a productive resource for business and stimulate its growth.
Experts, having analyzed the situation, came to the conclusion that more than 11 million of the Russian population will choose to work legally under a self-employed patent from the “shadow” sector of private business.
What benefits do they see for themselves, what do they perceive as privileges?
The interest of self-employed citizens, in particular Russians, in acquiring a patent is manifested based on the following factors:
- it becomes possible to engage in work within the legal framework, observing preferential conditions that reflect low tax payments. It is taken into account when saving for retirement and for medical treatment;
- Legal registration of self-employed status is similar to opening an individual entrepreneur. A citizen receives the right to enter into official contracts, defend his interests in court if financial disagreements arise, use advertising to promote his product in the service market, and much more.
The opinion of those who support this bill expresses that the state does not receive a large increase in tax collections. At the same time, the status of self-employed citizens who have received patents equates them to the category of persons engaged in official entrepreneurship. Motivation appears for further development and business growth. This can be considered a promising direction for the development of the country as a whole.
List of available activities
If a citizen (individual) decides that it would be better for him to work for himself and do it officially, through obtaining a self-employment patent, he is faced with a choice. He can choose from several professions the one that suits him most.
Only persons whose activities are included in the list of professions approved for obtaining a document can obtain a patent. These may be the following types of citizen activities:
- tutoring;
- provision of services to individuals in the form of providing care for minor children, sick or elderly persons;
- cleaning, cooking food in order to make money on the service.
The list will be expanded in the future. It is proposed to include the following series of activities:
- provision of repair services for clothing and shoes;
- translation of foreign texts;
- photography services;
- fishing and fish farming;
- private transportation, delivery of people and goods to their destination;
- copywriting (writing articles);
- construction and arrangement of nurseries for pets, etc.
Disadvantages of self-employment
- Not suitable for freelancers with large incomes. If your annual income exceeds 2.4 million, you must definitely switch to individual entrepreneurs.
- Not available for some activities.
- You need to pay taxes. Yes, this reduces net profit, but it moves the relationship with the client into a “white” legal zone.
What do you need to get a patent?
Obtaining a patent has its own conditions. Citizens who wish to obtain a self-employment patent must meet certain requirements. There are criteria by which the readiness of citizens to acquire a patent is determined:
- The chosen activity must be included in the list of professions for which a self-employment patent is allowed.
- They should not be registered as individual entrepreneurs (IP). Accordingly, they cannot have their own trademark;
- They must do their work independently. Hiring of hired workers is not allowed;
- To obtain a patent for a self-employed citizen, you need to collect and provide a complete package of documentation. The tax service requires you to fill out a notification according to the sample.
Difference with IP
A self-employment patent differs from an individual entrepreneur in that the citizen receives a monetary incentive for his activities. All responsibility for organizing the work process and its consequences falls personally on the self-employed individual. At the same time, the bill allows them to carry out contractual work together with other citizens engaged in labor activities on the basis of a patent.
Thus, the income of the population who registered self-employment consists of:
- earnings from employment;
- profit received from the use of their cash investments.
This type of employee differs from individual entrepreneurs in the following positions:
- The ability to work only with the use of a self-employment patent. Such citizens cannot work under another type of taxation (individual entrepreneur or LLC) simultaneously with the current one.
- It is prohibited to involve other people in working on this document.
- You can only engage in activities that are included in the list of permitted activities.
- Such physical persons do not have the right to be forced to use cash register equipment for accounting purposes.
- By purchasing work patents for Russians, citizens are freed from the need to provide a report on their financial activities to the Federal Tax Service and the pension fund. This allows you to work freely, but within the scope established by law.
- Registration of a permit for self-employment allows individuals to carry out entrepreneurial activities. Moreover, as soon as a person receives a patent to work for Russians, he is automatically registered by Federal Tax Service employees as a small entrepreneur.
Worth knowing! Parliamentarians want to approve the need to apply for this document. The amount proposed to be charged for this is 100 rubles.
Documents for registration of a patent
Any registration of activity or obtaining a category requires preliminary collection of documents. To obtain a self-employment patent, you also need to prepare the necessary papers and take the appropriate actions.
- First of all, you need to contact the tax office. It must be located in the area of residence or stay of the citizen.
- The tax office will need to fill out a notification (application) requesting a patent. It has a special shape. Filling is carried out according to the sample. Some items in the notice must be filled out by a tax officer.
- A fee is paid for the patent and then it is supposed to be issued to the applicant. But, at the moment, patents are not being issued. A self-employed person is registered with the tax service.
- Anyone who wants to have a submitted application must fill out two identical notifications. Give one of them to the tax authorities, keep the other one, putting a note on it that the acceptance document remains with the self-employed citizen.
Important! The patent is valid in the region where it was issued to the applicant. Currently, its coverage area is very limited. The issue of expanding the patent's territory is being discussed. In the future, we can expect that the situation will change and the territorial boundaries will be increased.
The application includes three sheets. All the citizen’s data is described in detail, including his personal passport data, TIN, telephone numbers and other information indicated in the document.
Important! A patent provides the right to only one type of work. If a citizen wants to patent some other activity, he has to acquire another patent. He can act in this way no more than three times.
The notification form may look like this:
- the application can be sent by mail as a registered letter;
- sending can be done by email;
- citizens can use the Federal Tax Service website or the state portal. services.
The last two cases require enhanced qualified digital signature.
As already mentioned, in addition to the notification, the required package of documents is submitted to the tax authority.
The application to the tax authority must be accompanied by a package of documents, which must contain the following official papers:
- passport or identity card of another format;
- TIN;
- a certificate confirming that the individual does not have the status of an individual entrepreneur. This document is required to be provided. In its absence, a citizen will not be able to obtain a self-employment patent.
Patent cost
The cost of a patent for the self-employed is still being talked about and its final level is being discussed. How much a patent will cost is still a controversial issue in the bill. Despite this, the payment scheme has already been sufficiently developed, and the procedure for further division into system payments has been worked out.
The estimated cost of a self-employment patent is estimated at around 20,000 rubles. 9 thousand rubles go to the Russian Federation Pension Fund, and only 1 thousand rubles go to the Compulsory Medical Insurance Fund. Another thousand rubles goes to the regional budget.
The basis of such a system is the acceptance of a single payment from the future entrepreneur and its further distribution. This makes organization easier. A person has to pay a one-time payment, and then the treasury undertakes to independently regulate the distribution of received funds among authorities. In terms of time, this takes ten days after purchasing a patent license.
Legally, the payment period for a patent of a self-employed citizen is ten days from the date of receipt. The time for registering it and preparing its patent by the responsible persons will take five working days.
A patent is valid for a certain period, after which it loses its validity. Automatic deregistration occurs. If desired, a citizen can have his patent renewed. To do this, he will need to submit a notice.
Remembering the benefits that a patent provides, it is necessary to remember that its acquisition serves to protect citizens from punishment that follows under the article “illegal entrepreneurship.”
The absence of a patent can result in penalties of up to two thousand rubles. Larger amounts may also be assessed. This may be due to tax charges and insurance premiums calculated for the entire period of activity without registration. The penalties accrued in this case will be 10% of income. This is at least 40 thousand rubles.
If a self-employed person who does not have a patent receives a large profit, various types of punishment may be applied to him, including a large fine of 300 thousand rubles. In addition to a fine, a citizen may be sentenced to perform community service for up to 480 hours or be sentenced to arrest for up to six months.
Rights and obligations
A patent makes it possible to officially work within the borders of the subject of the federation where it was received. The duration of the permit is from 1 month to 1 year. In this case, the amount of tax deductions is fixed and is automatically distributed to the budget, as well as insurance funds. This allows a self-employed citizen, without accounting experience, to know exactly how much and when to pay deductions. When the document expires, the patent is automatically revoked if it is not renewed.
Self-employment status may be revoked in the following cases:
- When a citizen receives an income exceeding 1 million rubles per calendar year;
- The type of human activity differs from that specified in the patent;
- An individual attracts other people to work.
Tax burden of self-employed citizens
Legalization of the business of citizens who have received the status of self-employed and burdening them with tax charges, on an equal basis with individual entrepreneurs and organizations (legal entities), is dictated by the sale of services, product of activity and profit.
The issue of the final cost of a patent for self-employed Russians is still being worked out, as is known. Only the approximate price at which you can buy a patent is mentioned. It is expected that no other paid permissions other than a patent will be sought.
Those who have received a self-employment patent can count on receiving a two-year tax holiday. This decision was put forward at the legislative level.
Entrepreneurs receive privileges:
- Reducing tax burden. They only buy a patent and don't pay for anything else.
- Exclusion of the obligation to make mandatory insurance payments. Payments to the Social Insurance Fund are made on a voluntary basis.
Taxes and fees
Due to the fact that the law on self-employment of the population is still “raw”, the issue of paying taxes for individuals working under a patent will be worked out by the government until 2021. By this time, it is expected that citizens will take the opportunity to legalize their entrepreneurial status in the legal field and understand the meaning of its implementation. Today, the only payment for conducting such activities is the cost of obtaining the patent itself.
Tax holidays
This concept represents an opportunity for all individuals who have obtained legal self-employment status to receive the following benefits:
- No need to pay taxes until 2019;
- No insurance contributions are required during this period.
Individuals gain this opportunity after purchasing a patent. However, it is important to comply with the following conditions:
- Lack of individual entrepreneur status;
- Receiving wages only from ordinary citizens;
- Providing services that are permitted by the self-employment law.
Another factor for applying for a tax holiday is working without involving outside forces.
