Taxes and Accounting in Russia
- Tax Year
- From 1 January to 31 December.
- Accounting Standards
- In Russia, accountancy is mainly interpreted as the rules defining the way of keeping accounts books.
It is governed by the Russian accounting standards ( RAS in English), which are different from international standards.
- Accounting Regulation Bodies
Ministry of Finance
Russian Central Bank
- Accounting Reports
- Company annual accounts must be composed of:
- a balance sheet,
- a profit and loss account,
Small companies can produce simplified accounts.
- Publication Requirements
- Only certin companies (insurance or joint-stock companies) are requested to publish their accounts (with an audit).
- Professional Accountancy Bodies
Russian institute of professional accountants
International association of accountants and auditors
CIPA , International certification program for professional accountants.
- Certification and Auditing
- Only certain companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. You can contact the Russian College of auditors.
- Accounting News
- Nature of the Tax
- VAT : Nalog na dobalennyu stoimost (NDS)
- Tax Rate
- Reduced Tax Rate
- The reduced rate of VAT in Russia is 10% and mainly concerns foodstuffs and children's clothes. A zero VAT rate is applicable (but is not limited to) to the following operations:
- export of goods to a destination outside Russia;
- transportation, loading/unloading and arranging of transportation, loading/unloading of exported goods performed by Russian organisations or Russian individual entrepreneurs;
- transportation, loading/unloading and arranging of transportation, loading/unloading of imported goods performed by Russian organisations or Russian individual entrepreneurs (except for Russian railway carriers);
- works (services) related to the transportation of goods in transit;
- some goods and services supplied to foreign diplomatic missions.
- Other Consumption Taxes
- There are excise duties on many luxury goods, in particular on cars, motorbikes, alcohol and tobacco.
- Company Tax
- Tax Rate For Foreign Companies
- Russian legal entities are taxed on their worldwide income.
Foreign legal entities which have a permanent establishment in Russia (subsidiary, branch, agency, etc.) are taxed on the income earned by this establishment in Russia. Expenses occurred abroad by this establishment can be deducted.
- Capital Gains Taxation
- Long term capital gains are considered in the same way as other income and taxed at the same rate as Corporate tax, i.e. 20%.
- Main Allowable Deductions and Tax Credit
- All expenses (with a few exceptions) are deductible if the documents confirming these expenses, even indirectly, are provided.
Research and Development expenses are deductible up to 100% until 2 or 3 years after the end of the project.
Reduction of up to 4% of profit tax is availble in certain region of Russia. Technology and software companies may also benefit from some concesions
- Other Corporate Taxes
- - Unified social tax: paid on all payments made to employees; the rate is progressive.
- Tax on personal property and real estate: the maximum rate is 2.2%; property ownership is exempt.
For additional information access the 2009 Danske Bank guide on Doing Business in Russia.
|Flat tax rate for residents||13%|
|Tax for non-residents||30%|
- Allowable Deductions and Tax Credit
- The following expenses can be deducted:
- donations to recognized institutions (up to 25% of income)
- expenses relating to the education of a family member (up to a certain limit)
- for a dependent member of the family (up to a certain limit)
- contributions to a supplementary retirement scheme (up to an annual limit)
- medical expenses (up to 28 000 roubles)
- the purchase of real estate (deductions up to 1 million roubles a year)
The following income is exempt from tax: sale of living accommodation or another good owned for more than 3 years, interest earned on deposits made to Russian banks under certain conditions, grants, retirement pensions or disability benefit.
- Special Expatriate Tax Regime
- There is no special regime for expatriates.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
List of treaties signed by Russia with links to texts
- Withholding Taxes
- Dividends: 9% (15% if paid to foreign entity or non-resident); Interest: 20% to nonresidents, Royalties: 20%. These rates may be lower in the case of a tax treaty with Russia.
- National Organizations
- The Russian Federal instrument for the protection of intellectual property is the
Russian Patent &Trademark Office.
Given the risks of pirating in Russia, it is imperative to register with the register of trademarks to ensure protection ( be careful: judicial procedures in the country are very slow).
- Regional Organizations
- Russia is a member of the Eurasian Patent Organization.
- International Membership
Member of the
WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
National Regulation and International Agreements
|Type of property and law||Validity||International Agreements Signed|
|20 years|| Patent Cooperation Treaty (PCT)
Strasbourg agreement Concerning the International Patent Classification
Law on Trademarks, Service marks and Appellations of Origin of Goods
|10 years|| Trademark law treaty
Protocol relating to the Madrid Agreement
Law on Copyrights and Relative Rights
|70 years after the death of the author|| Berne convention
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
- Independence of Justice
- Judicial power in Russia is not independent. It suffers from corruption, lack of funds and qualified personnel.
- Equal Treatment of Nationals and Foreigners
- Foreigners cannot expect an impartial hearing in judicial matters.
- The Language of Justice
- Recourse to an Interpreter
- Sources of the Law and Legal Similarities
- The main source of the law is the Constitution of December 1993. The country's judicial system is based on a system of civil law and judicial reviews of various legislation.
- Checking National Laws Online
Database of the Council of the Federation (in Russian)
- National Standards Organizations
Federal Agency for technical regulation and metrology
Test and certification Center (in Russian)
Certification research institute
Institute for information on certification and quality
- Integration in the International Standards Network
- Russia is a member of the
International Standards Organization (ISO), the
International Electrotechnical Commission (IEC), the
International Telecommunication Union (ITU), the
International Organization of Legal Metrology (OIML). It is a signatory to the
Metre Convention and an affiliated member of the
International Laboratory Accreditation Cooperation.
In the framework of the CIS, Russia is an integral part of the EuroAsian Council for Standardization, Metrology and Certification. It is also a member of the European Organization for Quality, and of COOMET (EuroAsian Cooperation of National Metrological Institutions).
- Classification of Standards
- GOST + 4 figures indicating the rank + 2 figures indicating the technical domain.
- Online Consultation of Standards
On-line catalog (in Russian)
New standards (in English)
- Certification Organizations
List of certification organizations
- General Information
- Opening Hours and Days
- Banks and administrative offices are closed on Saturdays and Sundays. You find bureaux de change everywhere, and they like US dollars and euros above all. Some of them are open at weekends.
Shops and bureaux de change are open on Saturdays and until about 8pm during the week. Some are open 24/24 and 7/7.
|New Year||1 and 2 January|
|Orthodox Christmas (Rojdevstvo)||7 January|
|Defenders of the country Day||23 February|
|International Women's Day||8 March|
|Labor Day holiday||1 and 2 May|
|Victory Day (Armistice 1941-45)||9 May|
|National Day (Russian independence)||12 June|
|Unity Day||4 November|
- Holiday Compensation
- When a public holiday falls over the weekend, the Russian authorities announce if the day will be celebrated on the preceding Friday or the following Monday. The authorities can declare days holidays to create long weekends. These days are usually made up for on other close dates.
Periods When Companies Usually Close
|New Year||1st week of January|
|Labor Day||1st week of May|
|Summer holidays||2 weeks in July or August|
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