In this page: Corporate Taxes | Accounting Rules | Consumption Taxes | Individual Taxes | Double Taxation Treaties | Sources of Fiscal Information
Standard corporation tax | Generally 20%: 3% of revenues is allocated to the federal budget, whereas 17% is allocated to the budgets of the relevant constituent regions (the regions may reduce such allocation to 13.5%) |
Additional withholding tax for foreign companies on their income that is not obtained by their permanent establishment in Russia | from 10% to 20%, depending on the type of income and the method used to calculate it |
Dividends received by a Russian entity | 13% |
Foreign tax credit is available but may not exceed the amount of Russian tax payable on the foreign income.
R&D expenses are deductible within one year after completion (in some cases they can be multiplied by a coefficient of 1.5). Furthermore, a provision for future R&D expenses may be accrued for tax purposes.
Losses in the form of bad debts that are written off are usually deductible. Charitable contributions deductibility is capped at 1% of revenues (conditions apply). Taxes are generally deductible, fines are not.
Regarding net operating and capital losses, starting from 1 January 2017, the amount of a recognised loss of prior periods cannot exceed 50% of the current year tax base for corporate income taxation purposes. Starting from 2021, recognition of the entire amount of losses will become possible again. The carryback of losses is not permitted.
Numerous tax incentives are available, including regional tax reductions for investment projects, tax reductions for technology and software companies, a ten-year tax holiday for the Skolkovo Innovation Centre, a 0% profits tax rate for specific educational and medical services and a 150% profits tax deduction for qualifying R&D expenditure. Since 1 January 2021, regions may also establish investment tax credits for R&D activities. Other special tax regimes (e.g., regional investment projects, special investment contracts, or “territories of advanced social and economic growth”) grant a 0% profit tax rate, property tax reduction, and other benefits.
For 2022, social security contributions amount to:
- pension: 22% of an employee’s remuneration up to RUB 1,565,000, plus 10% of amounts exceeding this limit
- social insurance: 2.9% of remuneration up to RUB 1,032,000
- medical insurance: 5.1% of the full remuneration
- mandatory accident insurance: from 0.2% to 8.5% of the full remuneration, depending on the degree of inherent risk.
Social contributions are reduced for SMEs and for IT and technology companies.
Russia | Eastern Europe & Central Asia | United States | Germany | |
---|---|---|---|---|
Number of Payments of Taxes per Year | 9.0 | 13.9 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 159.0 | 226.2 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 46.2 | 36.5 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
An environmental fee must be paid by manufacturers and importers of goods to be disposed of after they are no longer fit for use or consumption (paper and paper products, rubber and plastic products, textile and leather, metals, and electronics). Other taxes include Water Tax, Transport Tax, Biological Resources Use Fee, Minerals Extraction Tax, and Gambling Tax.
Residents and foreign highly skilled specialists | 13% for income up to RUB 5 million 15% on the excess |
Non-Residents | 30% (15% for dividends) |
Excess interest income and Awards and prizes received during contests, games, and other events conducted for the purpose of advertising goods, work, and services, in excess of set limits |
35% of their value |
Tax deductions are available for property-related allowances, social allowances, business expenses and standard allowances. Qualifying gifts and inherited property are tax exempt.
Donations to certain non-commercial organisations and qualifying charities are deductible from taxable income within certain limits. Individuals can deduct from taxable income the costs of their own and their children's education in Russian-licensed institutions (up to RUB 50,000 per child), as well as the costs of medical services (for themselves and close relatives) and medicines.
Expenditures incurred by an individual on the acquisition or construction of an apartment or house and related plot land, as well as payment of interest on the respective loans, are allowed as a deduction of up to RUB 2 million with respect to expenditures plus the amount of interest of up to RUB 3 million (available only to tax residents and only once). Taxable income from the sale of property (except for immovable property) owned for less than three years may be decreased by expenses incurred, or by a minimum deduction of RUB 1 million (for immovable property owned for less than five years), and RUB 250,000 (for other property, except securities).
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Latest Update: June 2023