Tax Consulting and Russian Taxation
Tax consulting and Tax Return in Russia, Russian Taxation
Many foreign companies underestimate the seriousness of tax consequences during the initial stage of the business set up that takes place in Russia. Once a decision is taken, it is very difficult to have it reversed. Therefore, comprehensive advising in Russian taxation prior to company registration in Russia is crucial.
We offer you our advisory services on fiscal considerations of everyday transactions, and consult you on the preparation of tax structures and tax planning in selected areas (incl. tax returns, tax computations, etc.).
This includes:
- Tax advice in the context of company foundation (Russian taxation)
- Tax due diligence
- Elaboration of tax and accounting policy
- Tax optimization of daily transactions, tax returns, tax computation
- Arrangement of non tax-deductible expenses, which are partly seen as salary-substitutes
- Planning of value-added tax, especially involving cross-border transactions
- Recommendations for, and preparation of, controlled transaction notices and documentation to confirm compliance with transfer pricing law
Taxes in Russia
| Type | Amount in % | Details |
| Profit Tax (for companies) | 20% | Reduction up to 15.5% is possible in special economic zones and certain regions). |
| VAT (Value-Added Tax) | 20% | Standard rate. |
| 10% | Applicable for:
|
|
| 0% | Applicable for (providing certain conditions are met):
|
|
| Dividend Tax (Withholding Tax) | 15% | For payments abroad), may be reduced to 5% depending on the double taxation agreement). |
| Property Tax (on fixed assets) | up to 2.2% | of the book value |
| 1-2% | of the cadastral value | |
| Personal Income Tax (no sliding scale, hardly any exceptions)
|
13% | for tax residents and foreign highly-qualified specialists |
| 30% | for tax non-residents | |
| Social Contributions
|
30% – 15.1% | 0% for temporarily staying HQS |
| – 22% pension fund | up to 1,150,000 RUB in 2019, then 10% until the end of the year | |
| – 2.9% social security fund | up to 865,000 RUB in 2019, then 0% until the end of the year | |
| – 5.1% fund of medical insurance | no limits are foreseen |