Taxes in Russia are fixed until 2018
Russia's Prime Minister, Dimitry Medvedev, stated that the Government does not plan to raise any taxes until 2018. The statement was made in order to clarify any existing rumours and the Russian official emphasised that the authorities do not wish to bring any changes to the tax system. The stability of the tax system is an advantage for foreign investors in Russia.
No planned tax changes
The announcement was made specifically to clarify recent comments that suggested an inevitable tax increase. The Prime Minister highlighted the importance of keeping the tax system stable and he also mentioned that, while at the moment there are no planned increases, the situation may change in a few years.
Earlier this year the Russian Government rejected the draft law for introducing a tax on unhealthy products like sugary fizzy drinks or potato chips. Russian officials declared that this eventual tax should be discussed within the legal framework relevant to the field in question, namely healthcare and food safety.
Current taxes in Russia
The current corporate income tax in Russia is 20% and it applies to all companies that are incorporated in the country and to those like branches in Russia that derive income from business activities performed in the country. Other corporate taxes include withholding taxes on dividends or interest the property tax and social security. VAT is payable in Russia for the provision of services and the sale of goods.
Personal taxation consists of the personal income tax that applies to the worldwide income of a Russia citizen. Other taxes for individuals include social security or the property tax.
The tax year is usually the same as the calendar year and companies as well as individuals need to observe the current filing and payment requirements. Penalties apply for late payment. You can request the help of our experts in order to avoid any problems caused by not observing the actual filing requirements.
The experts at our law firm in Russia can help you with additional information about taxation in the country and the company incorporation procedure.