Patent Based Simplified Tax System

Individual entrepreneurs involved in business activities as they are identified by paragraph 2 Article 346.25.1 of the Tax Code of the Russian Federation who have voluntarily allied for a patent as identified by legislation
The document certificating the right to apply patent Based Simplified Tax System
The Simplified Tax Patent is issued at request of an individual entrepreneur by the tax authority at the place of registration of such individual entrepreneur
Tax period
The duration of a patent my be between 1 and 12 month subject to taxpayers decision. The tax period equals the duration of a patent.
Cost of patent
- is determined by the tax authorities, as the percentage (6%) of potential (which might be received) annual income. Such incomes are determined by the local legislative actsfor each business type. - paten cost is adjustable to the duration of a patent
Tax payment
- 1/3 of the patents cost – not later than calendar 25 days after startingrealizing entrepreneurial business on the base of a patent; - Remaining part (2/3) - not later than calendar 25 days after patent expiry
Tax return
Not filed