Tax Consultancy in Russia

Competence and expertise
regarding cross-border tax issues

For you in Russia!

 

Do you have any questions regarding taxes in Russia? We would be pleased to support you with our expertise and knowledge.

Especially for the subsidiaries and branche offices of foreign companies, comprehensive tax advice in Russia is an important component on the way to successful business in Russia. It is not only about the payment of taxes in Germany, but also about the fiscal handling of cross-border cash flows. Tax optimisation of the entire company, its processes and procedures helps to operate as tax-efficiently as possible at home and abroad.

The Russian tax system

The Russian tax law is largely based on extensive tax reforms, which took place gradually at the turn of the century in two successive phases and have been supplemented to this day by continuous adjustments and improvements. The comparatively new tax law is mainly regulated in the two-part tax code of the Russian Federation, which defines the respective tax types, their amount and their application.

In Russia, taxes are not charged for all tax types according to a uniform principle. Instead, the Russian tax system is divided into three different levels. The applicable tax rate is determined by the lowest authority in each case:

  • Federal taxes: These are taxes levied uniformly in the whole of Russia in the same amount. These include, for example, value-added tax and income tax as well as federal profit or corporation tax.

  • Regional taxes: The types of tax to be determined at the regional level include, inter particular, property tax for legal entities, gambling tax, transport tax and regional profit or corporation tax.

  • Local taxes: In addition to the wealth tax of natural persons, local authorities also levy the amount of property tax.

For a company operating in Russia, the issue of taxation is, on the one hand, to comply with applicable law and to transfer the amounts due to the competent authorities on time and without error. On the other hand, however, it is always important to strive for the best possible tax efficiency. Tax optimization can affect different areas and tax types.

Tax reduction and double taxation treaties:

For most European countries, there is a double taxation agreement (DTA) with Russia, which is particularly relevant for cross-border transactions, especially between the foreign parent company and the Russian subsidiary. Knowledge of the correct interpretation and application of the rules included in these regulations helps to achieve the best possible tax efficiency for a branch or company operating in Russia. For example, in accordance with the respective double taxation agreement, it is often possible to benefit from a reduction in the dividend tax rate by increasing the share capital of the Russian subsidiary to a fixed amount.

In addition, a large number of special economic zones spread throughout Russia create special incentives for both domestic and foreign companies by, among other things, significantly reducing taxes on profits. For large and long-term investment projects, it has recently been possible to conclude a so-called special investment contract directly with the Russian state. As a result, it is possible to reduce the federal as well as the regional share of profit tax to up to 0%, depending on certain conditions and obligations.

Our services for you in the area of tax consulting

  • Tax advice in the context of company foundation (Russian taxation)

  • Tax due diligence

  • Elaboration of tax and accounting policy

  • Tax optimization in daily business in Russia

Do you have any questions regarding taxes and taxation in Russia? Do not hesitate and contact us. Please feel free to send us an e-mail, give us a call or make an appointment at one of our offices in Moscow, St. Petersburg or Vienna.

Further information on taxes in Russia as well as numerous other topics related to the Russian economy can be found in the publications section or on our Russia Economy blog.

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Business Set-Up, accounting and reporting in Russia

Ausserer & Consultants is an international tax and accounting company based in Moscow, St. Petersburg and Vienna. Since our foundation in 2012, we have made it our mission to support small and medium-sized companies in local accounting including tax returns, reporting, business Set-Up and expansion in Russia. We also advise on individual questions regarding the Russian market and support our clients at all times.