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  • The Patent System of Taxation
    Only individual entrepreneurs can use this system of taxation. The Patent System is somehow similar with the Single Tax on Imputed Earnings: it is applicable only for definite types of activities and is used together with the General Taxation System or the STS.

    What are the advantages of the Patent System of Taxation?

    The main advantage of the patent is that you don’t pay the tax at quarter-end and don’t file accounts to the tax authorities. You just buy a patent for the period from 1 month to 1 year and disengage from the necessity to "communicate” with the tax authorities on this type of activity. All you need is to pay for the patent in time and to fill in the journal of income. The cost of the patent depends on the potentially possible income stated by the local authorities. Your actual income doesn’t influence it and the amount sum of the patent doesn’t decrease by the insurance premiums.

    There is a restriction for non-appliance of the patent system in terms of quantity of employees – there should be no more than 15 people and the annual income must not exceed 60 million rubles. If you decided to use this taxation regime, you should file an application to the tax inspectorate within 10 days.

    An IE with the Patent System of Taxation is not obliged to use cash equipment while cash payments.
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