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.