Russian Tax Planning Services
It becomes particularly tough for Russian citizens and taxpayers to comply with the country’s tax rules and reforms which can lead to heavy penalties. Most of these strict laws and reforms are also very difficult to understand for the national residents and expatriates. As a result, they end up paying either less tax or pay excess tax costs than required, leading to heavy fines. Russian tax residents, tax non-residents, expatriates and business travelers need to comply with Russian immigration laws, reforms and security.
Paying excess tax charges can be avoided by seeking help of a leading financial service provider. Accepting the support of specialized Russian tax accountant at More Group, not only ensures your compliance, but can expand growth opportunities.
Russian taxable incomes & who is eligible for tax?
The amount of tax that is payable depends on the income received by the payee in cash or in kind. Value of the income received in kind is determined by the market price of the goods or services received.
Russian tax residents (whether Russian nationals or foreign expatriates) who own a worldwide personal income are subjected to a 13% PIT rate. However, the tax rate on certain types of non-employment income such as income from interest derived from use of loans is levied at 35%.
Russian tax non-residents (whether Russian nationals or foreign expatriates) are regulated to pay a 30% Personal Income Tax on Russian sourced income. The exceptions are income earned such as dividend income received by Russian companies (15%), and employment income of tax non-residents who are foreign employees with the status of HQS (13%).
Russian tax filing deadlines
The Russian tax year runs from 1 January to 31 December. Tax returns should be submitted to the Federal Tax Service using a form called Tax Declaration (Nalogovaya Declaratsia). Tax returns must be submitted before 30 April and the final date to pay your Russian taxes is 15 July.
For a company, it is mandatory to register at the Russian tax office if it intends to do business for more than 30 days a year. An employee must notify the tax office via their employer within ten days of being employed.
If taxes are filed less than 180 days late, 5% of the tax owed is charged for each full or partial month the declaration is overdue.
If the declaration is more than 180 days late, 30% of the tax owed is charged, plus 10% for each full or partial month after the first 180 days.
How we can help you
With our team of specialised tax accountants providing corporate tax planning, registration and compliance to a wide range of clients all over Russia and Russian expats, we have gained expertise and efficiency in our process of tax planning for our clients.
Our tax accountants provide unparalleled advice, and extensive support when it comes to efficiently planning the Russian tax infrastructure for our clients. This reduces the company’s chances of increasing tax liabilities; it saves costs in the form of excess tax paid and also develops a robust tax framework for years to come.