Russia

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

Corporate income tax rate varies between 20% and 24%: 7.5% of it is paid to the federal government, between 10.5% and 14.5% is paid to republican authorities and 2% to local authorities.

   
Tax rate on long-term capital gains Capital gains are taxed with the same rate as the corporate tax.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies In Russia, a 15% withholding rate applies if either the recipient or the payer of the dividends is a foreign legal entity.
   
Tax rate on branches Branches are imposed on the corporate tax at a rate between 20% and 24%.




Income tax

Fiscal year The fiscal year begins on January 1st and ends on December 31st of the same year.
   
Income tax rate Personal income tax rate is 13% but special rates are applied to some kinds of income, e.g. prizes, insurance proceeds, interest on certain bank deposits. Incomes of non-residents are taxed at 30%.
   



VAT rates

Standard rates 18%
   
Reduced rates The reduced rates From VAT in Russia vary between 0% (some imported medicines and equipment) to 10% (some supplies of basic foodstuffs and children's clothing).



Other important taxes


Name of tax
Rate
Tax on deals safety  
0,8% of the amount of the deal  
Land taxes  
2%  
Donations and successions  
Successions: 5% to 30%
Donations: 3% to 40%  


 

Accounting

Introduction
Russian accounting rules are determined by the Ministry of Finance.


General accounting principles
The balance sheet is presented into accounts with liabilities composed of constant capital and debts, because there is a distinction between long and short-term debts.
The profit and loss account gives priority to the repository of the global production and leave the choice of the costs classification either by nature or by function.

Obligations and publications
Companies have to publish a balance sheet, a profit and loss account and annexes.

Certification and auditing
The external control of accounts must be confided to a body of experts (auditors) chosen by the company.

Professionals and representative organizations
Accountants associations have some difficulties to get organized, because of the importance of the State in the accounting system.



Useful links
For further information, please contact the Ministry of economic development and trade and EMG Professionals or download the ITIC Special Report on the Taxation Systems and Economic Development in Select Countries of Eurasia, June 2002 (PDF file).

Last modified in 2006 - ongoing update
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