Tax deduction for individuals - authors of utility models

    In accordance with Art. 1 of Federal Law of 24.11.2014 N 367-ФЗ “On Amendments to Article 221 of Part Two of the Tax Code of the Russian Federation” from January 1, 2015, the provisions of Article 221 “Professional tax deductions” apply to utility models:

    When calculating the tax base in accordance with with paragraph 3 of Article 210 of this Code, the following categories of taxpayers are entitled to receive professional tax deductions:
    3) taxpayers who receive royalties or royalties for the creation, execution or other use the study of works of science, literature and art, rewards to authors of discoveries, inventions, utility models and industrial designs, in the amount of actually incurred and documented expenses.
    If these expenses cannot be documented, they are deductible in the following amounts:
    Cost standards (as a percentage of the amount of accrued income)
    Discoveries, inventions, utility models and the creation of industrial designs (to the amount of income received during the first two years of use)thirty

    It should be noted that the article of the Tax Code cited above obviously refers to the costs of creating inventions, utility models and industrial designs, including the costs of patenting them. In addition, it should be noted that the Tax Code speaks of remuneration to authors and it is not clear from it whether only authors of inventions, utility models and industrial designs have the right to tax deduction, or whether patent holders-individuals who are authors also have this right inventions, utility models and industrial designs and receiving income from their use, including royalties, or income from the sale of a patent. It would be interesting in this connection to find out the opinion of tax lawyers.

    The previously mentioned tax deductions were possible with respect to remuneration to authors of inventions and industrial designs. This change in legislation fits well with the trend according to which the legal regime of a utility model approaches the legal regime of an invention. As part of this trend, we also note that from January 1, 2015 the extension of a patent for a utility model will become impossible and the maximum validity of a utility model will be limited to ten years (previously this period could be extended by three years).

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