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Taxation in Russia

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Taxation in Russia

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Taxation in Russia

Income Tax

In Russia there is a simpler tax code system that was created to reduce the tax burden on people, which also dramatically increased state revenue. There is a flat personal income tax rate of 13%.Individuals are liable for tax on income as employees, and income in self-employment. Tax is payable on income earned in Russia and overseas by individuals who meet the test of permanent residency in Russia. Foreign residents only pay tax on income earned in Russia. To be considered a Russian resident, you need to be in Russia for at least 183 days during any given tax year.

Value Added Tax (VAT)

VAT is applied at a standard rate of 18%. A preferential VAT rate of 10% is applied to:

  • medical goods
  • books and periodicals
  • food products
  • children’s garments

There is an import VAT exemption for ‘technological equipment that has no equivalent produced in Russia’ according to a government approved list. The listed equipment generally also qualifies for a 0% rate of customs import duty.

Corporate Taxes

Profits are taxed at a maximum of 20% on net income.

Payments by employers to the Russian Pension Fund, Social Insurance Fund and Medical Insurance Funds amount to 30% of total payroll.

Income Tax

Personal income tax is paid at a flat rate of 13%. You are considered a Russian tax resident if you live in Russia for over half a year in 12 consecutive months.

Non-residents are also subject to personal income taxation on Russia generated income.

gov.uk


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