Tax and Accounting Regulations

Companies of all organization forms can use General and Simplified Tax Systems. There are restrictions on using Simplified Tax System (STS) concerning asset size (no more than USD 3m), number of workers (no more than 100) and trade turnover (no more than USD 2m). Using Simplified Tax System, the Company is not allowed to have more than 25% corporate shareholders (the Nominee Shareholder should be).

The Company has two options of income tax payment:

  • 15% of profit (proceeds less expenses)
  • 6% of proceeds

The Tax has to be paid quarterly. The reporting is filed once a year.

VAT. The Company is not a VAT payer except the import operations и the VAT payment for foreign counterparty. It is possible to register a Company as a VAT payer on your own initiative.

The General Tax System (GTS). The income tax is 20%.  It is paid to the difference between profit and expenses. The components of expenses are strictly regulated and under control of Tax Service. The VAT is 18%. The Property tax (fixed assets) is 2.2% of the cost. The reporting is filed quarterly.

The Social security tax is 34% of the expenses spent on workers’ salary.

The income tax on workers is 13%.

The fee for Company support (including accounting, fiscal accounting, accounting and tax reporting submission):

 

GTS

STS

Less than 100 transactions/quarter

700

300

Over 100 transactions/quarter

700 + EUR3 /transaction

300 + EUR2 /transaction

Take the next step, we are here to help.

Register a Russia company.
Open a Russia bank account.

  Resources:

Cyprus Regulatory Update: Shell Company Definition & Exceptions

Cyprus Regulatory Update: Shell Company Definition & Exceptions

The Central Bank of Cyprus has released new guidance for all credit institutions on the island, refining the definition for shell companies and subsidiary entities; coming into effect from November 2018, which are detailed as follows:

Singapore Variable Capital Company VCC: New Features & Benefits

Singapore Variable Capital Company VCC: New Features & Benefits

The introduction of the VCC is a significant positive for the Singapore funds industry. Its aim is to retain Singapore as an attractive business destination and to keep investors wishing to domicile locally.

Consolidated Accounts for Hong Kong Companies: Subsidiary Requirements

Consolidated Accounts for Hong Kong Companies: Subsidiary Requirements

As per Hong Kong company’s ordinance subdivision 3 section 379 subsection 1, a Company Director will have to prepare year-end financial accounts that comply with sections 380 and 383.

Challenges of Our Time: Cryptocurrencies & Their Regulation

Challenges of Our Time: Cryptocurrencies & Their Regulation

The very concept of cryptocurrencies derives from technologies and the creation of alternatives to existing payment systems, which for the most part is caused by the negative consequences of financial crises and the injustice within the sphere of financial and legal regulation. Many people are convinced that the cryptocurrency is likely to become an alternative to the established global financial system and open new opportunities to those segments of the population and citizens of those countries that are deprived of the opportunity to work with the banking financial system.

The Tax System in Poland: Benefits & Overview

The Tax System in Poland: Benefits & Overview

The tax system in Poland is one of the most loyal for both large and small businesses in the country. There are two levels in the system that relate not only to residents of Poland, but also to foreigners. The Polish tax system consists of administrative taxes (duties are paid directly to state bodies) and local taxes (the process is similar to the previous type). Therefore, Poland is one of the European countries with a stable economic position, whose attractive system attracts citizens from neighbouring countries to conduct business within the country. It is the Polish taxation system that is advantageous for businessmen willing to enter the international market.

The reasons of abolition of the Company Secretary in UK Private Companies

The reasons of abolition of the Company Secretary in UK Private Companies

The role of Corporate Secretary can be a position in a private sector company or within the public sector organisation. In large, publicly-listed corporations, a Company Secretary is typically named a Corporate Secretary or just a Secretary. The Company Secretary is responsible for the efficient administration of a company, particularly with regards to ensuring compliance with statutory and regulatory requirements and also for ensuring that decisions of the board of directors are implemented.

The Dematerialisation of Shares in the UK: Current Update & Assessment

The Dematerialisation of Shares in the UK: Current Update & Assessment

Business is an area that is continuously developing. An integral part of both business and economics are companies. It is possible to say that companies dictate the conditions of the market to a certain extent. Any public or private company has its own shares; a share is a security that provides a portion of ownership of the company and gives the holder the right to a part of the profits.

Current Information on the Payment of Cyprus Taxes for Pensions & Rental Income

Current Information on the Payment of Cyprus Taxes for Pensions & Rental Income

Cyprus employees who are considered to have tax resident status, pay tax on their global income. Employees not considered to be tax resident are only charged for specific types of income that are originating from Cyprus-based sources.