Corporate Income Tax in Russia

Corporate income tax in Russia is the largest source of regional revenues. The total tax rate is 24 % and:
• 6.5 % is remitted to federal government
• 17.5 % is remitted to the regions
The tax is calculated on gross revenues, less almost all economically justified business related expenses. The tax year in Russia is the year ending of 31 December. It is compulsory for a limited company to submit the financial statements of 30 March. During the year the company is obligated to made advance payments on a monthly basis. 

Double taxation of dividends is completely eliminated when a Russian shareholder owns at least 50 % of Russian or foreign subsidiary paying dividends for at least 365 days and the investment is worth more than 500 million rubles. All other dividends received by Russian shareholders are subject to 9 % tax.

Tax rate
In Russia is the corporate tax rate 24 %. The regional states may decrease the tax rate by a maximum of 4 %, resulting in a regional portion of at least 13.5 %. Therefore the effective corporate tax rate can be between 20 % and 24 %.

Capital gains for companies
The standard tax rate in Russia is 24 %, but local authorities could potentially reduce the rate to at least 20 %. Taxable profits from sale of property by Russian companies and branches of foreign entities having permanent establishments in Russia are calculated as gross sales proceeds less the net tax book value of the property.

Bc. Petr Gola