When applying the PSN, the object of taxation is not actual, but potential income. For each constituent entity of the Russian Federation and for different types of entrepreneurial activity, its own size of potential income is determined separately. The value of the patent (patent tax) must be stated in a document issued by the tax office.
Changes in 2020
In 2020, the list of types of activities in which an individual entrepreneur is entitled to apply PSN has expanded. New species are related to agriculture:
- livestock and livestock services;
- crop production and provision of crop production services.
Some of the activities, the implementation of which previously allowed the use of PSN, will be excluded from this list from 2020. From January 1, 2020, the patent cannot be applied in the case of trade in goods that are subject to mandatory labeling. For example, medicines, furs, and clothing, footwear.
Previously, a patent was issued only for a monthly period, that is, multiples of one month. Starting in 2020, a patent can be purchased for a period of one day or more. The validity period of the patent will be any within one calendar year. However, it cannot be extended for the next calendar year.
In 2020, regional legislatures will be able to restrict the use of PSN. It will depend on the objects of trade, the area used, the operating vehicles. For example, the new powers allow local MPs to prohibit the use of patents in cases where the area of shopping facilities exceeds 50 square meters.
In the summer of 2020, at the initiative of the government of the Russian Federation, a bill was introduced to the State Duma aimed at expanding the capabilities of individual entrepreneurs in terms of applying the PSN. In September, it was adopted by the State Duma in the first reading.
According to the new document, the wording of the types of entrepreneurial activity in respect of which the application of the PSN is allowed will be brought in line with the wording of the OKVED codes. It is planned to expand the list of types of entrepreneurial activity, in the implementation of which an individual entrepreneur can use a special patent regime. It will include the types of activities for which UTII is now applied.
Taxpayers on the PSN will have the opportunity to reduce the amount of tax on paid insurance premiums. Entrepreneurs using UTII already have this right, so this measure will allow them to comfortably switch to PSN.
For individual entrepreneurs at PSN, who are engaged in retail trade and provide catering services, the restriction on the area of trading halls and premises for serving visitors will change. Previously, the maximum area was 50 square meters. It is planned to increase it to 150. At the same time, the subjects of the Russian Federation will be able to limit the maximum area to a smaller size.
Individual entrepreneurs with hired workers will have the opportunity to reduce the cost of the patent by the amount of paid insurance premiums, but not more than by 50%. Individual entrepreneurs without employees will be able to deduct the number of contributions paid from the tax in full.
How to calculate the cost of a patent in 2020
The annual cost of a patent for an individual entrepreneur is calculated by the formula:
Base yield x 6%
6% is the maximum tax rate of the PSN. Regional legislation can lower the tax rate to 0%. The base rate of return is spelled out in the laws of the constituent entities of the Russian Federation separately for each region. This indicator is needed to calculate the possible annual income of an individual entrepreneur. In this case, income is calculated for each type of entrepreneurial activity.
The maximum amount of potential annual income in 2020 is RUB 1,592,000. Its base size is established by the Tax Code of the Russian Federation – within one million rubles. The base size is increased every year taking into account the deflator coefficient. For 2020, the deflator coefficient for calculating the maximum potential income is 1.592.
For certain activities, regional legislatures can increase the maximum potential annual income by up to ten times. For example:
- up to three times, if the individual entrepreneur provides transport services, maintenance and repair of transport;
- up to five times, if entrepreneurial activity under a patent is in millionaire cities;
- up to ten times, if an individual entrepreneur rents out real estate, is engaged in retail trade or catering.
For cases where a patent is acquired for a period of less than one year, the calculation formula is as follows:
Basic Yield / 12 x K1 x 6%
K1 is the number of months the patent is applied, and 12 is the number of months in a year.
To calculate the value of your patent, you can use a special calculator developed by the IRS. You need to choose your municipality, type of activity, and patent period. Depending on the type of activity, the calculator will require additional data.
The term for payment of a patent depends on the period for which it is purchased. If the validity period is less than six months, the patent is paid no later than the last day of its validity period. With a period of more than six months, one-third of the cost of the patent must be paid within the first 90 days, the remaining two thirds – until the last day of the patent.
Thus, before calculating the cost of a patent, you need to make sure that your type of activity is suitable for the use of a special regime and take into account the amount of potential income established by regional legislation. The amount required to pay for a patent will depend on what conditions are established by regional law.