The Main Corporate Taxes in Russia

3% - corporate profit tax to federal budget.
17% - corporate profit tax to regional budget.

Some types of business activity are exempted from corporate profit tax, e.g. companies-residents of special economic zones.

As well, there are some types of income with different rates of corporate profit tax. Thus,

• 15% - for dividends received by a foreign companies on shares of Russian organizations
• 13% - for dividends received from Russian and foreign companies by Russian organizations
• 10% - for income of foreign companies not related to activities in Russia through a PE, from the use, maintenance or rental of mobile vehicles or containers in connection with international transportation

Income of foreign legal entities from international freight and the rental of property
involved in international shipping, and income from leasing and subleasing ships and aircrafts is taxable at 10%.

Corporate income tax is payable on a year-to-date basis. Companies may choose between paying monthly on the basis of actual profits or quarterly with monthly advance payments calculated on the basis of the profits received in the previous quarter.

As a rule, taxpayers pay the tax on their own account. However, in some cases (e.g. where income is paid in the form of dividends) tax is withheld at the payment source.
Where a double tax treaty exists between Russia and a foreign country, tax is paid subject to the provisions of such treaty. The list of the countries that have double taxation treaty with the Russian Federation.

Some transactions and taxpayers (e.g. culture and art institutions) are VAT exempt. Transactions that are exempt include:

• insurance and banking operations (with some exceptions);
• leasing out premises located in the territory of Russia to foreign individuals and foreign entities accredited in Russia (on the condition of reciprocity with the respective foreign country);
• sale of shares in the nominal (share) capital, shareholdings in unit investment funds or securities;
• certain medical equipment/services;
• the import of certain technological equipment, related components and spare parts as determined by the Government of the Russian Federation.

For cross-border services special rules apply which determine whether the services are provided within or outside Russia and, consequently, whether they are subject to Russian VAT.

Russian tax legislation also provides for the refund of input VAT for taxpayers that pay VAT at 0% on export sales. However, a taxpayer shall be obliged to confirm the right and provide number of documents in certain deadlines to the tax authorities.

Payment of VAT for reporting quarter can be done by installments until the 28th of the each month of the next quarter. VAT tax return shall be provided only in electronic format. Together with calculation of VAT, taxpayer provides to the tax authorities Sales and Purchase books, which contain information about issued and received invoices for VAT purpose.

Companies pay the following taxes and contributions on employee’s remuneration:

The provisions of the respective double tax treaty signed by Russia with a number of countries may amend the taxation of individuals in Russia.

Tax is usually withheld at the source of payment.

Remunerations of foreign employees working in Russia under work permit of Highly Qualified Specialist is taxable at 13% regardless the number of days spent in Russia.

From 1 January 2017, social insurance contributions are administrated by the Tax authorities (before they were administrated by Pension Fund of Russia and Social Insurance Fund)
Total rate of insurance contributions is 30%

Starting 2023 there is unified insurance contributions rate 30% within limit value 1 917 000 Rubles (for 2023) and 15.1% for remunerations more than 1 917 000 Rubles.

Insurance contributions are not payable in respect of foreign nationals whose temporary stay in Russia and work under Highly-Qualified Specialist work-permit.

The base for calculating insurance contributions is calculated separately for each employee and for 2023 limit value for unified insurance is 1 917 000 Rubles. Limit value is revised by Russian Government on annual basis.

More detail you may see in the table of Insurance Contributions Tariffs for 2023, Insurance Contributions Tarrifs for 2022, Insurance Contributions Tariffs for 2021.

Obligatory Insurance contributions against accidents at work and occupational diseases
Are calculated and payable separately from the above insurance contributions. The rates vary from 0.2% to 8.5% of employees' remunerations. Rate depends on the employer’s business activity. The rate applicable to office personnel is typically 0.2%.

Persons or companies in whose name vehicles are registered are liable for transport tax, which is paid annually (in some regions of Russia — quarterly). Rates depend on the capacity of the transport facilities. The law has determined specific rates; however these may be changed at the discretion of the subjects of the Russian Federation.

Some companies and individuals meeting certain criteria can apply the simplified taxation system. This provides for the substitution of the corporate profit tax (except some specific kind of income, such as dividends from legal entity participation in capital, etc.), the corporate (personal) property tax and VAT (except for VAT payable when goods are imported into the customs territory of Russia and VAT of tax agent) for the single tax.

The tax is paid quarterly at the rate of 15% when the taxpayer elects to pay the tax on income less expenses (the list of expenses that can be deducted is strictly limited), or 6% when the taxpayer elects to pay the tax on income.