Accounting Outsourcing and
Tax compliance in Russia
Russia – Accounting Outsourcing and Tax Compliance
Taxation plays a huge role in the development of a nation. Russia has set out tax laws that look to raise revenue from its citizens, corporates and other business entities generating income in the country.
Global Expansion Plus provides accounting outsourcing and tax compliance in Russia. We provide services with support of our local accountants and tax specialists. We will perform bookkeeping, accounting and filling tax return on your behalf bearing all associated compliance risks.
Every state will put in place a tax system, to raise revenue. Russia is no different. Whether a resident or a non-resident, individual or corporate, there is the need to understand taxation in Ukraine. Otherwise, you are bound to get on the wrong side of the law.
Russia in facts
Corporate income tax (CIT)
Corporates, registered as legal entities have a duty to contribute to the Russian economy in the form of corporate taxes. It is normally set at 20% of the annual income. A small portion (3%) of the 20% CIT goes to the federal budget, while the rest is left to cater for the regional budget in the country. The allocation is based on the laws set and may expire in 2024, where new rates may come up.
Value-added Tax (VAT)
Value addition, among goods and services, attracts a special kind of taxation, VAT. The standard VAT rate is 20%. However, there are other products such as medicines, printed publications, foodstuffs (basic), and children’s clothing, among others, which attract a rate of 10%. Apart from the locally bought and sold goods and services, imports are also subject to this type of taxation.
When accounting for VAT in Russia, you need to consider such factors. The system applies an input-output system kind of computation. It takes on a ledger format, where VAT on purchases is the input, while sales take on the output. If the balancing figure rests on the side of the purchases, then the amount is equivalent to VAT payable, if otherwise it is VAT refundable.
Personal Income tax (PIT)
A normal rate of 13% applies. However, there are other rates depending on the residency and the source of income. For example, income by non-resident individuals, in Russia, attract a PIT of 30%. Other rates, which differ include:
WHT stems from a wide range of incomes in Russia. It is usually deducted from the source at a special rate depending on the nature of the income or the service provision, thereof. Some of the rates, relative to the nature of the incomes, are as follows:
Payroll related taxation
Import/ Export related taxation
When it comes to imports, goods have to go through certification or verification for clearance into the country. All goods crossing the customs border will be subject to a flat rate, which is the custom duty. However, it will depend on the value of the goods on the move.