Sverdlovsk Region to Launch Patent Taxation on January 1

December 18, 2012. ‘Starting January 1, 2013, a patent taxation system will come into effect in Sverdlovsk Region. One has to announce switching to the new system no later than ten days before the action is taken,’ Sverdlovsk Region division of the Federal Tax Service’s website reports.

The law relieves the tax burden imposed on the taxpayers by the Regional Act six years. For one, a patent to rent some real estate is now two times cheaper in Yekaterinburg and five times cheaper in other regional towns. The regional authorities hope that this will help the illegal landlords go legal, so this will no longer be the grey economy area. This, in its turn, will increase the inflow of revenues into the budget.

The new patent taxation system is a special tax regime effectuated by Article 26.5 of Russia’s Tax Code, and it can only be applied to sole traders, who may or may not use it, depending on their personal preferences.

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