Patent 2025: new rules for sole proprietorships

Patent 2025: new rules for individual entrepreneurs.

In the summer of 2024, tax legislation underwent significant changes. Although IE on a patent initially did not fall under the direct wave of reforms, the situation has changed.
On October 29, 2024 the President of the Russian Federation signed the law N 362-FZ with clarifications of a number of parameters of the tax reform. In particular, the amendments affected subpar. 1 п. 6 of Article 346.45 of the Tax Code of the Russian Federation.
Since 2025, IE, whose income in 2024 exceeded 60 million rubles, will lose the right to apply the patent system.
Previously, the threshold for retaining a patent was determined by the year of its issuance, which allowed sole proprietors to renew the patent for the next year even if the limit was exceeded in the previous year.
The new retroactive application of the rules allows for the issuance of a patent for 2025 if the sole proprietor applies for a patent before submitting his 2024 declaration. However, if during the audit of the declaration it is found that the threshold of 60 million rubles is exceeded, the IE's taxes will have to be recalculated retroactively from the beginning of the year, i.e. from January 1, 2025.
At the same time, upon loss of the right to a patent, sole proprietors who have switched to the simplified taxation system will also be obliged to pay VAT. Since the income limits are compared with the new rules for the simplified taxation system.

What does this mean for you?

The new rules require more careful planning and accounting of your income. Exceeding the limit will result in a switch to the simplified taxation system and mandatory payment of VAT.

Even if you apply for a patent in 2025 before submitting your 2024 return, the tax office will check your income and may recalculate your taxes.The introduction of new restrictions on the patent is probably aimed at increasing the tax burden on entrepreneurs with high incomes, so that IEs facing VAT under the simplified taxation system from the new year, did not use patents as a “protective shield”.Practice will show, but so far the new rules raise a number of questions. There are no corresponding changes in paragraph 4 of Article 346.45 of the Tax Code on the grounds for refusal to grant a patent. Accordingly, it remains unclear why the tax authorities should issue a patent for the next year, knowing about the excess income in the previous year. After all, an individual entrepreneur will not knowingly be able to use it.

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