What Foreign Investors Need to Know

Clear reporting, local compliance, and the right partner make all the difference

Doing business in Russia comes with a unique set of accounting requirements. For foreign investors, understanding the local rules is essential not only for compliance, but also for building trust with banks, partners, and tax authorities. Russian accounting is highly regulated, deeply tied to taxation, and differs significantly from IFRS or US GAAP.

At Outsourcing Solutions, we’ve been supporting international companies in Russia for nearly two decades. Here’s what you need to know before you start — or expand — your operations.

1. Russia uses its own accounting standards (RAS)

Unlike many jurisdictions that have adopted IFRS, Russia maintains its own national accounting standards (Russian Accounting Standards — RAS). All companies operating in Russia — including subsidiaries of foreign firms — must prepare their statutory reports according to RAS, regardless of whether they use IFRS for internal or group-wide reporting.

Key feature: RAS is closely aligned with tax accounting — financial statements often double as tax records, which means precision and accuracy are essential.

2. Statutory reporting is mandatory — and strictly monitored

Foreign-owned LLCs and branches must prepare and submit:

Monthly, quarterly, and annual tax reports
Financial statements in RAS format
Payroll reports and contributions to social funds
Reports to statistical authorities and other regulatory bodies

Filing deadlines are strict. Penalties for late or incorrect reporting can be severe — not only fines, but also reputational and banking risks.

3. Chart of accounts and documentation requirements are fixed

Russian companies are required to:

Use a state-approved chart of accounts
Maintain detailed primary documentation (invoices, contracts, waybills, etc.)
Archive records for several years (often 4+)

These documents are critical for tax audits, and often must be in original, hard copy format — digital workflows are permitted only under specific conditions and require certified e-signatures.

4. Tax-driven accounting: an important distinction

Unlike IFRS, where the focus is on investor information and financial performance, Russian accounting is designed primarily to calculate taxes. This affects:

Revenue recognition
Expense classification
Timing of profit distribution
Treatment of foreign currency transactions

This approach may require a dual system: one for statutory compliance (RAS), and one for group reporting (IFRS or local HQ standards). We help clients manage both seamlessly.

5. Payroll is part of accounting — and it’s complex

In Russia, payroll is fully integrated into the accounting and tax system. Companies must:

Calculate salaries, taxes, and social contributions
File monthly payroll reports to the Federal Tax Service
Manage sick leaves, vacations, and maternity benefits in accordance with labor law

Errors here are costly — for both compliance and employee trust.

Why working with a local accounting partner matters

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Accounting in Russia isn’t just about bookkeeping — it’s about protecting your company from regulatory risk and building operational trust in a market with strict oversight. We support our clients with full-cycle accounting, tax compliance, and transparent reporting that international stakeholders can rely on.

Julia Vernikovskaya, Financial Director, Outsourcing Solutions

What we provide for foreign businesses:

Full compliance with Russian Accounting Standards (RAS)
Dual reporting aligned with IFRS or internal group requirements
Payroll processing and tax reporting
Regular updates on regulatory changes
Coordination with your HQ finance team

Accurate accounting is the foundation of a healthy business — especially when operating abroad. If you’re a foreign investor looking to navigate the Russian market, we’ll make sure your numbers are right, your risks are minimized, and your reporting is crystal clear.

Do you need an expert advice?

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