According to Russian legislation, both foreign legal entities and individuals can create companies on the territory of the Russian Federation.

An updated special procedure for paying VAT on electronic services via the Internet provided by foreign companies to Russian customers is unofficially called «Google tax» in Russia.

The procedure for calculating corporate property tax is established by Chapter 30 of the Tax Code of the Russian Federation.

Tax audit is the main form of tax control, which is a set of measures carried out by the State Tax Authorities to monitor compliance with current legislation on taxes and fees. Tax audits are divided into desk and field audits.

The tax system of the Russian Federation is the main tool for development of centralized money funds required for the follow-on financing of all directions of national activity. It allows accumulating enough resources in the federal, local and regional budget and using them for national development.

Understanding the importance of attracting foreign investors, Russia provides them with a national legal regime with the same rights that Russian companies have.

What rules and rates can be applied to foreign companies, and what legal status is most profitable to work with?

Double taxation refers to the mandatory payment of income taxes in different countries. This usually applies to those who are citizens of one country but receive income in another.

What benefits can small businesses apply? First of all, these are special tax regimes. The most popular benefit in Russia is the possibility to use the Simplified Taxation System.

International investments are an essential part of the Russian economy, by creating a steady flow of tens of billions of dollars and creating the country a significant income with an also huge number of working spaces. By inviting foreign investors, the law gives them a national set of rights and responsibilities, making international investors have as many rights as Russian companies and investors. It affects not just the rights, but also the responsibilities of such companies, and taxation is also one of the duties of any foreign company working in Russia.

This question becomes even more complicated if you open your business or start working as an entrepreneur in a foreign country. There are a lot of taxes in the Russian Federation: VAT, Corporate Profit Tax, Corporate Property Tax, Water Tax to mention a few. But there is the light at the end of the tunnel if we speak about the Simplified Tax System.

One of the main factors for sustainable business development is a good, responsible, qualified and effective staff. It is challenging to assemble your team and find the right people. It is even more difficult to dismiss unnecessary and inefficient ones.

Every foreign employee working at Russian enterprises or representative offices of foreign companies must pay personal income tax (PIT) in the Russian Federation. Double taxation treaties between Russian and other states may establish some exceptions and specifics. Now let’s focus on the obligation to submit PIT form 3-NDFL (3-PIT) by foreign citizens. This form is updated every year. Not all foreigners provide this form.

Creating comfortable conditions for the IT industry’s development is one of the most important tasks for the Russian Government.

The law on the «tax maneuver in the IT-sphere» was submitted to the State Duma on July 16 and was approved by the Federation Council on July 24. Federal law No. 265-FZ «On amendments to part two of the Tax Code of the Russian Federation» was signed by the President of Russia on July 31, 2020.

Starting your business in Russia you need to know what are the main taxes of organization in Russia. This article helps you to get more details about taxation in Russia.