Russia's income tax - Individual
Individuals must pay tax for their income as an employee and as self-employed. The tax is paid on income in Russia and abroad, by an individual who represents Russia's "permanent resident" status definition.
Foreign nationals employed in Russia pay tax only for the income in Russia. To qualify as a Russian national, the minimum period of stay in Russia has to be 183 days during a taxation-year.
A self-employed have to pay income tax in advance, it is calculated and reduced when submitting financial statements. If there is a new company, the advance payment is calculated under the founder's estimate. Advance payments occur several times per year.
Corporation tax - Tax on company profits consists of two parts:
State tax 6.5 percent
Regional tax 17.5 percent
- The maximum income tax is 24 percent
Small and medium-sized businesses and individuals who satisfy certain criteria may elect an alternative tax system - The simplified tax system.
The simplified tax system replaces income tax, personal tax, VAT and property tax. The tax rate is 6 percent of income (of total turnover), or 15 percent of the difference between revenue and costs. The number of employees must not exceed 100 employees and the total may not exceed 11 million rubles (approximately 260,000 Euro)
VAT VAT works according to the European role model. The following is subject to VAT: the sale and import of goods (services, work) in Russia, the introduction of goods (services, work) in private contexts, whether these goods (services, work) are not tax exempt, etc. Imports of goods to the Russian Federation customs territory is also subject to VAT.
The usual rate of VAT is 18 percent. Some goods and services (certain medicines, food products, products for children etc) have a reduced VAT rate of 10 percent. There is also a 0 percent rate that applies to export in many different cases and for some specific supplies.
Cecilia Helland