Russia Tax Guide

Russia

Currency: Russian Ruble

Foreign Exchange Control: Some restrictions but do not apply to repatriation of profits to a non-resident entity.

Accounting Principles: Russian Accounting Standards. Financial statements prepared quarterly and annually. Some companies required to use IRFS.

Business Entities: Principally, “open” and “closed” joint stock company, limited liability company, partnership, sole proprietorship and branch of foreign entity.

Corporate Taxation

Residence: If incorporated under Russian law.

Basis: Residents are taxed on worldwide income. Non-residents are taxed on income from commercial activities undertaken in Russia and on passive income from Russian sources.

Rate: 20%

Foreign Tax: Foreign tax credited against Russian tax on the same profits, limited to the amount of Russian tax payable.

Other: Tax reductions for investment projects in many regions and for many educational and medical services and R&D.

Tax Year: Calendar year

Personal Taxation

Residence: Residents taxed on worldwide income, non-residents taxed on Russian-source income only (resident if in Russia for > 183 days in a 12 month period).

Rate: 13% for residents. 30% for Russian-source income to non-residents unless reduced by a tax treaty.

Capital Gains: Charged on some gains

Other: Stamp duty: Usually nominal

Real property: 2% of the cadastral value per annum

Social Security: Employers and the self employed contribute

VAT: Standard rate 18%

Member Firm: Russian Law LLC

Email:
Julia Shevela: julia_shevela@yahoo.com