Moscow city Duma adopted a Law on patent taxation

The other day the Moscow city Duma adopted the Law «On the patent system of taxation». It will enter into force on the 1st of January in 2013. The Law of the city of Moscow on October 29, 2008 № 52 "On the simplified taxation system based on a patent" that acts at the present time, has lost its force.

It is interesting that income that is possible to receive depends on types of entrepreneurial activities, established in the new Law in a range from 300 thousand up to 3 million rbl., is significantly lower than the maximum amount, established by the Tax code. The upper bracket of the potential income of 3 million is for the public catering services, private medical and pharmaceutical, as well as the private detective activity.

On the basis: http://www.duma.mos.ru/cgi-bin/pbl_web?id=2&osn_id=0&id_rub=592&ne`ws_unom=37009; http://www.depir.ru/content/c57-page1.html;

In accordance with the Federal Law from 25.06.2012 № 94-FL «On making amendments to part one and part two of the Tax code of the Russian Federation and certain legislative acts of the Russian Federation» on January 1, 2013 in the Tax code of the Russian Federation will be introduced the 26.5th Chapter «The Patent system of taxation». At the present time the Code contains only one article, regulating this aspect.

The new chapter fixes kinds of activity which the patent can be issued on. Now these activities are fewer (47 instead of 64), but this was due to the expansion of their content. In addition, new types of activities were included, such as dry cleaning and Laundry; rendering of services on transportation of passengers by water transport; provision of services on transportation of cargoes by water transport; rental services, excursion services; retail trade, carried out through

the objects of the stationary trade network with the area of trading floor not more than 10 square meters, and the objects of the stationary trading network, which has no trade halls, as well as objects of non-stationary trade network; services of public catering, through objects of public catering organizations with the area of the hall of the service of the visitors of no more than 10 square meters for each object of public catering organizations.

In the case when the individual entrepreneur applies the patent system of taxation, he is exempted from payment of the tax to incomes of individuals, and also the tax to property of individuals.

As regards the value added tax, as a general rule, taxpayers applying this system, shall be exempt from paying it. Exceptional are the cases of the implementation of the types of entrepreneurial activity in respect of which does not apply the patent system of taxation, the importation of goods into the territory of the Russian Federation and other territories under its jurisdiction, and in addition, the implementation of the operations, in accordance with the contract of simple partnership (contract on joint activity), the contract of the investment of the partnership, the contract of trust management of property or concession agreement. In these cases, VAT is payable.

The right of using the patent system is confirmed by a patent, which is issued to the individual entrepreneur for a term of one to 12 months, depending on that the tax period is established. The tax rate remains the same - 6%.

Important is the fact that since the publication of the above-mentioned Federal law, patents are granted by tax authorities with the validity period of no later than December 31, 2012.

Previously issued patents, with a validity period bursting after 1 January 2013, act till December 31, 2012 inclusive. The cost of the patent in this case is subject to recalculation in accordance with the actual duration of validity of the patent, offset (refund).

The patent system is to be introduced by laws of the subjects of the Russian Federation, which shall be published no later than 01.12.2012. Subjects will be able to add the list of kinds of activity and the amount of the annual income, which gives the right to the use this mode.

In addition to Moscow, such laws have already been adopted in the Murmansk region, the Republic of Buryatia, the Stavropol territory, in the Republic of Tatarstan, the Ulyanovsk region, the Kamchatka region and other constituent entities of the Russian Federation. Many subjects installed the size of the annual income that can be potentially received by an individual entrepreneur depends on type of business activity, which are subject to patent tax system, and also introduced additional types of business activities.

In particular, the Sakhalin oblast Law no. 93 from 12.10.2012 «On the introduction on the territory of the patent system of taxation on the Sakhalin area» established the possibility of application of the patent system in respect of the services of non-industrial nature (secretary services-referent, including with knowledge of foreign language; translations from one language to another, including written translations made by further development of the automatic translation services; copying and duplicating services; organization of fireworks; cleaning of drain and sewer grates, pipes and gutters; cleaning of the steep roofs of snow and ice), as well as services of baths, showers and saunas.

The advantages and disadvantages.

The introduction of such a system of taxation, as well as any tax, causes ambiguous attitude. 

On the one hand, it has certain advantages, such as the payment of a single tax instead of several, the possibility of voluntary transition to the given system, the possibility of its use together with other modes.

On the other hand, the patent taxation has enough disadvantages. One of them is the impossibility to apply it to the organizations. At the present time the organization has no right to do it, in this respect, nothing has changed, however, in connection with future abolition of a single tax on imputed income, small enterprises will have to choose between the general and simplified taxation system. However, due to the limitations of the conditions (the amount of sales and fixed assets, and number of employees), she did not fit all. And the patent system, which could so get them, will not be available for them.

Moreover, many employers believe that this system with its 6% rate, would be very unprofitable for them as the average annual income, which financiers took as the basis, does not coincide with the real figures.

Apparently evaluation of the effectiveness of such a taxation system will only be possible in the next year, when the new chapter on the patent taxation will come into force.