Reporting of individual entrepreneurs on a patent in 2021 with and without employees

Today we propose to find out how an individual entrepreneur can switch to a patent taxation system, and figure out what kind of reporting is provided for individual entrepreneurs on a patent in 2021.

A patent is a document issued by the tax authorities, upon application of an individual entrepreneur, giving the right to apply the patent taxation system.

Until 2021, a patent could be purchased for a period of one to twelve months in one calendar year. But in 2021, changes to the Tax Code came into force. Article 346.51 of the Tax Code of the Russian Federation allows for the acquisition of a patent not from the beginning of the month, but from any date.

An individual entrepreneur on PSN can work independently or with the involvement of hired workers. The Tax Code of the Russian Federation establishes a limit on the number of employees: there can be no more than fifteen people, including the individual entrepreneur himself.

In 2021, the restriction applied to all types of activities and to all taxation systems when combined with PSN. Those. if you use the PSN and the simplified tax system, you cannot employ more than 15 people employed in these two systems, including the individual entrepreneur himself. From 2021, changes to the Tax Code of the Russian Federation will make it possible to count the number of employees separately according to taxation systems. The number of employees employed in the field of activity on the PSN will be limited to 15, and the number of employees on the simplified tax system should not exceed 100 people.

The patent tax system, abbreviated as PSN, is one of the most preferred tax systems for individual entrepreneurs. It is distinguished by a low tax and administrative burden.

The main advantage of PSN is that there is no need to submit a declaration to the Federal Tax Service. But with PSN you can’t do without documentation at all.

What is the patent tax system

This is the only taxation system where an entrepreneur does not submit a tax return, but he must pay the tax. The tax amount is immediately included in the cost of the patent. Any entrepreneur can switch to this taxation system. But in order to legally engage in his activities, he needs to acquire a patent.

Every businessman needs to know about a patent.

Note! The patent is valid from 1 to 12 months.

It's very profitable. A person can open a business for a short period of time and check its demand in the chosen area.

Tax base for a patent for 2021

The tax amount is calculated using the formula:

Potential income x Tax rate

For the convenience of calculations, the Federal Tax Service has posted on its website an official calculator for calculating the cost of a patent at ]]>https://patent.nalog.ru/]]>, where anyone can online calculate the amount of tax depending on the number of months of application, type activities and a specific region. Another more reliable and accurate way is to find the regional law on the introduction of a patent on the Internet and clarify the types of activities allowed under PSN, the maximum possible income and the calculation procedure.

What types of activities are covered by the patent?

Application for a patent for business activities - how to fill out

Only individual entrepreneurs can use the patent taxation system.

And only certain types of activities fall under it.

What kind of business can you do legally?

This:

repair, tailoring of clothing, fur products, hats, products made from textile haberdashery;
repair and sewing of knitted knitwear;
shoe repair, cleaning, painting and sewing;
hairdressing, cosmetic services;
dry cleaning, laundry services;
production and repair of metal haberdashery, keys, license plates, street signs;
repair and maintenance of household radio-electronic equipment, household machines, appliances, watches;
repair and production of metal products, furniture;
services of photo studios, photo and film laboratories;
repair and maintenance of motor vehicles, motor vehicles, machinery, equipment;
transportation of goods and passengers by motor transport;
renovation of housing and other buildings;
installation, electrical, sanitary, and welding services;
glazing of loggias, balconies, cutting glass, mirrors, artistic glass processing;
training people in courses, tutoring;
supervision, care for sick people, children;
acceptance of glassware, recycled materials, but scrap metal is not included here;
veterinary services;
leasing of residential and non-residential premises, dachas, land plots owned by a businessman;
production of folk arts and crafts;
provision of production services;
repair of jewelry, costume jewelry;
embossing, engraving of jewelry;
monophonic, stereophonic recording of speech, singing, recording of an instrumental performance of a song by the customer on film, CD, re-recording of musical works on magnetic tape, CD;
cleaning of residential premises, housekeeping;
artistic decoration of residential premises;
physical education and sports classes;
porterage services at railway stations, bus stations, air terminals, airports, and sea harbors;
maintenance of paid toilets;
making various dishes and bakery products at home. These types of activities are usually carried out by a self-employed person;
transportation of goods and passengers by water transport;
marketing of agricultural products;
agricultural production services;
provision of services for green farming, decorative floriculture;
engaging in medical and pharmaceutical activities, but only after the person has received the appropriate license;
private detective services;
equipment rental services;
excursion, ritual, funeral services;
services of street patrols, security guards, watchmen, watchmen;
retail trade carried out through stationary trade facilities with a premises area of no more than 50 sq.m;
retail trade carried out through stationary trade facilities that do not have trading floors and through non-stationary retail chain facilities;
public catering services. Here, too, activities are divided into two categories: services provided through public catering facilities with a hall area of no more than 50 square meters, or services provided through facilities that do not have halls for serving the population;
livestock supervision;
production of leather and leather products;
collection and procurement of food forest resources, non-timber forest resources, medicinal plants;
processing of fruits and vegetables;
production of dairy products;
production of fruit and berry planting crops, growing seedlings;
sport and commercial fishing, fish farming;
forestry and other forestry activities;
written and oral translation;
care for the elderly and disabled;
waste disposal, processing of secondary raw materials;
finishing stone and making monuments;
development of computer programs and other databases;
repair of computers and other communication equipment.

Note! This also includes other types of entrepreneurship that an entrepreneur can engage in. A detailed list of professions is available on the Federal Tax Service website.

This might also be useful:

KBK to pay for a patent in 2021
Patent value calculation
Patent tax system in 2021

Details for paying insurance premiums in 2021
Which OKVED code should be indicated in the reporting for 2021?
Reduced insurance premium rates in 2021

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OKVED codes for PSN

Types of entrepreneurial activity: list of main types

For each type of activity there is its own classifier of OKVED codes. The code is also fixed in legislative acts. There are a lot of these codes, and it’s quite difficult for an entrepreneur to figure them out on his own.

For example, if he needs to rent out an apartment or office, then this process fits different activity codes. This may be the identification code of the type of business activity patent: 68.20, 68.20.1, 68.20.2.

If a person is engaged in trade or organizes his own company for transporting passengers, then there will be one type of business activity code for a patent in 2021.

But if the entrepreneur is a designer or is associated with online advertising, then he needs to use the following OKVED codes:

18.12;
74.20;
62.09;
73.11;
73.12;
90.03;
90.01;
62.01.

It can be seen that each activity has its own identification code, established by the law of the subject for a patent in 2019. And a special selection of OKVED codes developed for each type of business will help you choose exactly the right code. The information is located on the Federal Tax Service website.

Reporting methods

As you may have noticed, an individual entrepreneur with employees on staff must submit a fairly large number of documents to various regulatory authorities. But a businessman does not have to deal with these issues himself and waste his time.

At the moment, an entrepreneur can choose one of four ways to submit tax reports and financial statements:

As we said above, the most convenient way is online accounting.

Self-submission of documents is the easiest, in terms of execution, but the most time-consuming and labor-intensive method;
Executing a power of attorney for another person . A representative of an individual entrepreneur can submit reports for him if he issues a notarized power of attorney;
Sending reports by mail . Please note that the date of submission of the report in this case will be considered the date of sending the letter to the regulatory authority. The envelope must contain an inventory of the document signed by the accountant and manager. Experts advise enclosing two copies of the inventory. We recommend sending reports by registered or certified mail. This way you will be absolutely sure that they will reach the addressee;
Sending reports via the Internet . To do this, you need to go to the website of the Federal Tax Service of Russia. There you need to get a subscriber ID, install the PC program “Taxpayer Yul”, it is needed to generate documents. Or send reports through special communication operators accredited by tax inspectorates. You also need to issue a power of attorney to submit reports.

Transition to patent regime

Self-employed citizens - types of activities you can engage in

Anyone can switch to PSN. To do this, he needs to fill out an application.

A properly completed application will save you from all problems.

Important! The application is submitted to the Tax Service where the entrepreneur is registered.

In addition, he needs to submit an application to the Tax Service, which is located in the region where the entrepreneur will carry out his activities.

An entrepreneur can submit an application in several ways. An entrepreneur can:

independently visit the Tax Service, give an application and a package of documents to its employee;
give the application and papers to your representative. He must provide everything to the Tax Service. But the representative must have a power of attorney issued by the entrepreneur and certified by a notary;
send documents to Tax Service employees by mail. But they must be supported by an inventory;
send papers to the Tax Service via the Internet. This is done through the EDF operator.

The patent must be issued to the entrepreneur within 5 days. But Tax Authority employees may refuse to issue it.

I wanted to get a patent, but was only refused

This happens if a businessman:

wished to engage in a type of activity that is not covered by the patent system;
indicated in the application the incorrect validity period of his patent. For example, the validity period of a patent cannot be from September 1, 2021 to March 2021;
previously had a patent, but lost the right to use it. An entrepreneur can also voluntarily renounce a patent, but this must be done before its expiration date. Such actions are legal, but an entrepreneur will only be able to obtain a new patent in the new year;
has unpaid debts under an already issued patent;
did not include important data in the patent application.

If a citizen receives a refusal, then he should not be upset. He should eliminate all shortcomings and submit documents to the Tax Service again.

Book of accounting of income and expenses (KUDiR)

KUDiR is a reporting document of a private businessman. Under the patent regime, the ledger takes the form of a journal in which only the receipt of funds must be recorded. Keeping a journal is a must.

The document is intended to record the income of businessmen, which in the future will be taken into account to calculate potential income for the entire business area. However, these books do not directly affect the amount of tax payments of a particular entrepreneur.

The book has a form approved by the Ministry of Finance of the Russian Federation. The absence of a document is punishable by law: for this you will have to pay a fine of 200 rubles. It’s not much, but you shouldn’t risk it, because it could harm your reputation.

Keeping a book is simple: your task is to enter official income in chronological order. Please note that only those transactions that are confirmed in the form of an accounting document are entered into the report.

The book must be filled out within one tax period (the period for which the patent was purchased). After the expiration of the period, a new accounting journal is started.

KUDiR is presented in two formats: paper and virtual. You can buy a paper version at a printing house and fill it out manually. The electronic version is presented in the form of a program and online services for accounting.

If you chose a virtual form, then at the end of the reporting period, the completed document must be printed, certified by the regulatory authority and stored in the organization for the next 4 years.

Structure:

Title page . The personal data of the business owner is displayed here: first name, last name, patronymic, place of registration, current account, identification number and start date of the tax period;

The first section is “Income and Expenses” . This part of KUDiR contains four tables, one for each quarter. Each table is divided into four columns: date of entry, name of the document, its number and date, income and expenses. Patent owners do not need the “Expenses” column, so we will not analyze it. The income column is divided into five more columns: record contents, sales income, non-operating income, other income, notes. The lines must be completed in chronological order.
The second, third and fourth sections are not needed by entrepreneurs operating under the patent regime . They are intended to calculate the amount of future tax. We won't dwell on them.

Rules for filling out the journal:

Pages must be numbered;
The pages must be bound;
Transactions are recorded in chronological order;
The last page of the journal must contain the stamp and a numerical value of the number of pages that make up the document.

Pros and cons of working as an individual entrepreneur on a patent

The process of obtaining a patent has both positive and negative aspects.

Patent: good or bad

Its positive aspects are as follows.

With its help, an entrepreneur can:

pay a small amount of money and legally run your business;
choose the validity period of your patent;
acquire several patents and use them in different regions. An entrepreneur can also apply for a patent for each of his activities;
do not file a tax return and do not wait for Tax Authority employees to check it;
engage only in those types of activities that are recorded in Article No. 346.43 of the Tax Code of the Russian Federation. Moreover, Tax Authority employees can only expand this list of professions, reduce or remove certain types of activities from it; employees do not have the right. And if an entrepreneur works in Moscow, then he will not be allowed to switch to UTII. But a businessman has the right to apply for a patent. And he will need to prepare 2 times less tax documents.

In addition to the advantages, this process also has some disadvantages. For example, on the patent:

Only an individual entrepreneur can work, but organizations cannot reach him;
an entrepreneur can only engage in various services or retail trade in small stores;
a person can only have 15 people under him. And if an entrepreneur is engaged in several types of activities, then the number of employees does not increase;
if an entrepreneur is engaged in retail trade or buys premises for catering, then the area of the premises should not be less than 50 sq.m. And when registering UTII, this area may be larger;
the final cost of a patent is calculated from the total amount of income that a person will have from this patent. Moreover, for each patent, the entrepreneur must keep his own book, enter into it all the income received from this activity;
a person pays for the papers during their validity period. The entrepreneur does not need to wait until the end of the tax period. Remember: the patent is subject to prepayment;
a person cannot reduce the final cost of a patent by paying insurance premiums. Such a reduction in the total amount of income is available when switching to the simplified tax system, UTII. Remember: if a businessman uses several taxation regimes, then when calculating the Unified and Imputed Tax, only insurance premiums are taken into account, which the businessman transferred for himself. If a businessman made insurance contributions for his employees who work on a patent, then they cannot be included in the reporting papers.

The influence of the deflator coefficient on the basic yield

A coefficient is a specific numerical value that has a wide range of applications. It is used in economics when calculating shares and percentages, and also shows the growth dynamics of a certain object or phenomenon.

In tax practice, the deflator coefficient has found application as a way to adjust the amount of profitability for tax purposes. Why is this recalculation necessary? In conditions of market relations and an unstable economic situation, the price level in the country is constantly changing. This phenomenon is known as inflation. The deflator coefficient helps to bring the size of the basic yield into line with price increases, that is, to index it. It is calculated annually at the federal level for special tax regimes:

simplified tax system;
UTII;
patent tax system (PTS).

The upper limit of the basic profitability for the patent tax system is 1,000,000 rubles. The deflator coefficient is determined for the new calendar year as the product of the deflator coefficient of the previous year and a coefficient that reflects the increase in prices also in the previous year. Every year the calculated value of the deflator coefficient is multiplied by 1,000,000 rubles. Thus, the size of the basic yield for the current calendar year is obtained, taking into account the inflation process.

Local authorities cannot set the level of basic profitability in the region above this value, except for the cases prescribed in subparagraph. 4 paragraph 8 art. 346.43 of the Tax Code of the Russian Federation (increase in potential revenue by 3, 5 or 10 times).

To learn about the value of the deflator coefficient for PSN for 2017, read the material “Deflator coefficient for 2021 - dimensions”.

Calculation of tax on PSN

By switching to PSN, a person is not required to pay taxes, but he needs to pay for his patent. But he does not need to pay any further taxes. This:

Personal income tax on your income received from business activities operating under a patent;
VAT. But when importing goods into Russia, the entrepreneur is obliged to pay taxes;
Tax on property used by an entrepreneur during his activities.

Note! And since 2015, the patent payment period has also changed.

Now the entrepreneur who issued the patent:

for a period of less than 6 months is obliged to pay it before its expiration;
for a period of more than 6 months or a year is obliged to pay ¼ of its cost within 90 days after opening the business. And the entrepreneur pays 2/3 at any time before the patent expires.

If an entrepreneur does not pay for his patent on time, he will be fined. A person is not deprived of the right to use a patent. It is advisable to pay for the patent and insurance premiums from the entrepreneur’s current account.

Moreover, it is very easy to calculate the final amount of the patent. And you don't need a calculator here.

Calculate a patent? Easily

This amount is obtained by multiplying the tax rate (this is 6%) by the approximate amount of a person’s annual income.

Note! This interest rate is available to people who have issued a patent for 1 year.

If a person took out a patent for a shorter period, then the amount of the patent is obtained by dividing the approximate amount of income by 12 months, multiplying the resulting amount by the number of months that make up the tax period, and again multiplying the resulting amount by the interest rate.

An example of calculating the cost of a patent with basic profitability

In order to understand how tax inspectorates calculate the amount of the patent payment, let's look at a simple example. All data in it is conditional. Let us remind you that the size of the basic yield varies depending on the region of the country.

Example

Individual entrepreneur F.S. Bogdanov has a small shoe workshop and independently repairs, paints and sews shoes. Regional laws of the N. region of the Russian Federation for this type of activity establish the base income of 300,000 rubles.

The tax rate under the patent regime is 6% (Article 346.50 of the Tax Code of the Russian Federation). In paragraph 2 of Art. 346.50 of the Tax Code of the Russian Federation stipulates that only regional authorities of the Republic of Crimea and the city of Sevastopol can reduce it to 4% (for 2017–2021).

Let’s assume that individual entrepreneur F.S. Bogdanov does not operate in these regions. Then the annual tax amount will be equal to: 300,000 rubles. x 6% = 18,000 rub.

The cost of a patent per month will be 18,000 rubles. / 12 months = 1,500 rub. Accordingly, if individual entrepreneur F.S. Bogdanov acquires a patent for 2 months, then he will pay 3,000 rubles, for 5 months - 7,500 rubles. etc. But such a calculation is made for no more than 1 year.

There is no need to submit a tax return under the patent regime.

In order to obtain a patent, an individual entrepreneur only needs to submit an application to the tax office and meet certain conditions (carry out the required type of activity, have no more than 15 employees and annual revenue of up to 60 million rubles). To control the amount of his income, an entrepreneur is required to keep a book of income, that is, carry out tax accounting.

Read about the procedure for calculating imputed tax for UTII in the article “Online calculator for calculating UTII in 2019–2020” .

Are there any benefits for this special regime?

A businessman who has switched to a patent has the right to pay reduced tax contributions for his employees. For all employees working for him, the businessman is obliged to make contributions to the Pension Fund. But the patent requires him to pay 20% for them.

An entrepreneur is not obliged to make contributions to the Social Insurance Fund and the Federal Compulsory Medical Insurance Fund for his employees. But he does not need to pay for himself to the Pension Fund and the FFOIM. He will also have to pay a 1% payment on his income. Interest is paid if the entrepreneur’s income increases by more than 300,000 rubles.

Required papers

To begin, you will need to collect the following list of documents:

Application for patent renewal (Appendix No. 2 to Order of the Ministry of Internal Affairs of Russia dated August 14, 2021 No. 635).
International passport.
Migration card.
Temporary registration document.
Passport translation performed by a notary.
A certificate that confirms knowledge of the Russian language.
A certificate confirming that the medical examination has been passed.
Petition from the employer.
A copy of the employment contract.
Receipts confirming the monthly payment of personal income tax (can personal income tax be returned and what other taxes and insurance premiums will a foreigner with a patent have to pay?).
Health insurance policy for the whole year.

Petition

A petition is a necessary document from an employer to renew a work patent. Without this document, it is impossible to obtain an extension of a work patent. It must be presented to the Main Migration Department of the Ministry of Internal Affairs.

There is no standard application form. There is only a certain list of data that you must write:

Referral to the Main Department of Migration Affairs of the Ministry of Internal Affairs and information about the legal entity - the employer.
All details of the patent you are re-registering.
Required employee data:
citizenship;
passport details (series and number).
You also need to indicate the details of the employer if he is an individual:
- FULL NAME;
place of passport registration.

If the employer is an individual entrepreneur, then the following data must be indicated:

full name of the employer's organization;
legal address where the organization is located;
TIN.

Also, the application must indicate the date of the document, the employer’s signature and seal.

We do not recommend completing the documents yourself. Save time - contact our lawyers by phone:

8 (800) 350-29-87Moscow

What are the income limits?

A person working for PSN can receive no more than 60,000,000 rubles per year. Moreover, the total amount of income for all types of activities is calculated.

If the amount of income is greater, then the person will not be able to use the issued patent. In addition, a person working on a patent:

can receive from his business from 1,000,0000 to 10,000,000 rubles;
has the right to hire no more than 15 employees.

Moreover, employees are taken into account for all types of activities that are registered to the businessman. It is worth remembering that this takes into account people working both under a regular employment contract and under a contract for the provision of paid services.

Every citizen has the right to switch to a patent and engage in activities permitted in 2021. But he needs to study all the information on this issue in advance and prepare the required package of documents. This is the only way that Tax Service employees will be able to quickly process it. This way, he will quickly be given all the necessary papers, through which the businessman will be able to legally enjoy all the benefits that his new tax system gives him.

Conclusion

Changes in the procedure for applying a patent from 2021, on the one hand, make life easier for taxpayers, but on the other, raise new questions.

Undoubtedly, positive innovations are an open list of types of activities for a patent and an increase in area limits for shops and cafes.

However, regional authorities will choose specific types of activities for a patent and limit areas within federal limits. Also, constituent entities of the Russian Federation will now be able to set any amount of potential income at their discretion.

The monthly tax period should help those who lose their patent rights during the year. But on the other hand, this rule will make it difficult for new entrepreneurs to use tax holidays.

A long-awaited innovation is the right to deduct insurance premiums from the cost of a patent. But even here there was a “fly in the ointment”. Entrepreneurs who receive a patent for the entire year 2021 will have to pay monthly insurance premiums to qualify for this deduction. At least until the tax authorities issue clarifications on this issue.

Some individual entrepreneurs can switch from UTII to a patent without waiting for laws to be adopted in their regions. This applies to those who in the 4th quarter of 2021 were engaged in trade, catering, organized parking lots or repaired vehicles. For such individual entrepreneurs, federal law establishes a special procedure for calculating the cost of a patent in the 1st quarter of 2021.

The list of activities in which an individual entrepreneur with a patent can work without a cash register has now become closed.

It is possible that working on a patent in 2021, taking into account all the listed points, will turn out to be unprofitable for the entrepreneur. It can be difficult to provide for all the nuances, especially given the fact that not all regions will have time to make changes to their laws before the end of 2021.

Therefore, simultaneously with the application for a patent for 2021, it is better to submit an application for the transition to the “simplified language”. Taking into account the latest clarifications from the Federal Tax Service, both of these documents can be sent until December 31, 2021.

Price

The cost of renewing a work patent directly depends on the region in which it is issued. You can directly obtain this information from the Main Department of Migration Affairs of the Ministry of Internal Affairs in your region of work.

On average you will have to pay about 12 thousand. Of this amount, 3,700 rubles will be spent on registration of the patent itself, and all the remaining money will be spent on passing doctors, an exam on knowledge of the Russian language and the history of Russia, as well as on a policy and insurance.

If you need to have documents translated by a notary, it will cost from 400 to 1500 rubles for each.

In another material, we propose to find out all the detailed information about all the costs associated with filing a patent for work.