Does an artist need to pay taxes on Patreon donations?

Question

Monetization

Hello!
Please tell me, if you draw drawings (in digital format, not printed) and receive donations for this (donat) on the site patreon.com, do you need to pay taxes? I heard that donations do not have to pay taxes, but I think there are nuances, so here are 2 specific examples;
B1) If all the material on patreon is open to everyone, i.e. for the fact that people subscribe to you for a fee - they will not receive anything in return, they will have access to all the same material as people who are not subscribed.
B2) If on patreon part of the material will be available as in B1 and part is closed and in order to view it, you need to subscribe for $ 1-5 per month. More specifically, for example, for a subscription, it will be possible to view the step-by-step drawing process as a learning material, or simply the ability to view additional drawings.
Do I understand correctly that;
In the first option - you do not need to register anything anywhere, you can safely accept payments to the card and not worry about taxes. And if you receive a message from a payment system or a bank demanding to confirm where the money comes from - just write to them that these are all donations and send a link to the patreon page?
The second option is to pay taxes.
*It is still complicated by the fact that patreon withdraws money to paypal (and with paypal, money is withdrawn to a Russian bank card), but paypal has two account options, business and personal, if you are engaged in private activities, you cannot use a personal account for this, but you cannot use a business account register if you do not have an IP.

Answer 1

More specifically, for example, for a subscription, it will be possible to view the step-by-step drawing process as a learning material, or simply the ability to view additional drawings.

Here it is not necessary only to distort. This is no longer a donation, this is a purchase and sale in its most natural form, with all the consequences.
Voluntary cash donations are not taxed .

from any money transfers that act as a gift from any person, you never need to pay personal income tax. This person can be a relative, a friend, an acquaintance of an acquaintance, a colleague, a business partner, a lover, an admirer of creativity, a grateful reader, and just wanting to help in a difficult situation.
A gift of money can be made under a written or oral agreement. A transfer with the purpose of payment, from which it is clear that this is a gift or gratuitous assistance, is actually a concluded and executed contract. But for a large amount, it is better to draw it up in writing to make sure.
Such gifts do not need to be reported anywhere, they do not need to be indicated in the declaration. In general, nothing needs to be done. received and spent. Unless, of course, you are an official in the civil service.

Answer 2

The point is. In principle, you need to pay taxes, but let's be honest - in modern realities this is a utopia. If you receive donations from Patreon or not donations, then the IRS will not be interested. If you receive a lot of payments, you have more turnover, then of course this is no longer an individual and you need to register a sole trader. In some cases, you need to calculate whether it is more profitable to declare several of your income and pay *% (in Ukraine it is 19.5%). It all depends on the frequency and amount of payments. I think the patreon will not bring in several tens of thousands a day, several dozen payments, so you don’t need to pay anything.

Answer 3

In the second option in the Russian Federation, you take an IP, register an online cash register and everything like that IMHO. At the expense of the cash desk, of course, you also specify in the list of activities that have a delay in the introduction of cash desks. Again, don't worry too much, if your "donations" are less than about 50k a month, there will be no criminal charges.
I myself accept some money on regular paypal, without any business accounts, but there are small amounts from $50 to $1000 per month, I also send a check and fill in these payments to the accounting department, since I need a paypal for a small number of foreign players /expats (I have a small online game).
And yes, I don’t withdraw money from Paypal in any way, they are quickly spent on equipment rental.
Well, this is an option for "fat" comrades who have an income of more than 200k / month or their region is not on the list of self-employed, or if people who are not artists or have employees read the topic. And so, the NAP is only 4% and without additional. deductions and expenses at the cash desk - here it is yours.

Answer 4

Dear Olga , if you are and are engaged in creativity on the territory of the Russian Federation, then in this case your income is subject to personal income tax - Personal Income Tax. An individual is any person: a citizen of a country, a stateless person (stateless person), a refugee. Personal income tax is deducted according to the tax return, that is, a description of all your income. If you officially work in an organization, that is, you have an employment contract with this company, then it independently makes tax deductions, and also makes contributions to some funds. If you are a self-employed individual or receive any additional income, then you are required to declare it yourself.
In your case, your subscribers make you donate. In Russian, you receive donations - this is such a special type of income, like a number of others described in Article 217 of the Tax Code of the Russian Federation, which is not subject to personal income tax, that is, the entire amount of money remains with you, you can dispose of it as you like, in within the framework of the law.
When subscribers deduct money for you to show them works of art, and you show them only to those who paid, then this is considered a service. Your subscriber is a consumer, and you are a producer. This is a taxable action.
I want to tell you about a method that will make it very easy for you to pay tax for the provision of services to subscribers, in which you do not have to fiddle with pieces of paper. If you are located in Moscow, the Moscow Region, the Kaluga Region or the Republic of Tatarstan, then the “Law on Professional Income” applies to you, which allows you to pay tax under an incredibly simplified, modern system, at a reduced rate of 4% for services to individuals (your case) and 6% for services to legal entities. All you need to do is download the application to your phone.
Register on the site or through the My Tax mobile application, and conduct your business legally without unnecessary gestures - https://npd.nalog.ru/ . Good luck and prosperity to your creativity!

Answer 5

The Patreon service is outside Russian jurisdiction. You can draw calmly and collect donations. You can specify a country other than the country of residence, except for the United States (then Paypal will probably withhold the tax).
Get yourself a card on Payoneer , for example, and link PayPal to it, let the money be stored there directly in the currency. When necessary, you can cash them out yourself in small portions, the card will be sent to you by mail.
Disclaimer: All of the above is just my guess and is for informational purposes only.
PS I would be glad to see a link to your Patreon

Answer 6

the most important thing is that your activities are not subjected to the financing of terrorist activities, or to the laundering of proceeds acquired by criminal means by some thread of the FSB or the Investigative Committee of the Russian Federation ... and to the judge, if the tax authorities lock you up (and even after the crazy expenses for legal services), you are like a thread prove that Patreon is just a charitable organization, and not just another financial intermediary.

Answer 7

You register as self-employed, pay 6%, profit.

Answer 8

Register a non-profit organization, pay taxes from it, accept donations, donations, not profits from a paid subscription. You will not pay taxes on donations. At least that's how it is in Belarus. Donations must also be spent correctly, i.e. not as you want, but for the purposes of the organization.