Skilled Legal Counsel for International Businesses With Concerns About Russian Taxes at the Federal, Regional and Local Levels

There have been many changes to the Russian tax code over the years. Foreign tax entities that wish to operate in Russia are expected to stay abreast of current laws and follow through with the taxation requirements for their business operations and investments. At times, this task can go beyond the expertise and scope of a company’s in-house lawyer. Fortunately, businesses and investors can still plan appropriately and mitigate potential administrative risks by consulting with a local attorney who is experienced with the intricacies of all the Russian corporate taxes that are levied at the federal, regional, and local levels.

Our Corporate Tax Attorneys Have Direct Experience Helping Medium and Large International Businesses Make the Move to Russia

The Jus Privatum law firm is ready to provide skilled guidance through all manner of Russian corporate taxation concerns, including concerns about:

  • Corporate Profit Tax. “Profit” is defined as income minus deductible expenses, which should be a familiar definition for many of our foreign clients. Generally, all necessary and documented business expenses are deductible, although certain types of expenses are subject to restrictions. For example, some advertising costs and business entertainment expenses may not be fully deductible.
  • Value Added Tax (VAT). Although it may be a familiar concept for our European clients, VAT is not well understood in the United States. The VAT applies to the sale of goods and services within the Russian Federation and is also imposed on all imported goods. Depending on the circumstances of the company, VAT tax collections must be remitted either monthly or quarterly.
  • Corporate Property Tax. Corporate property tax is assessed each year, but collected each quarter. The tax rate is set by regional legislation, but it may not exceed 2.2%. Real property is exempt, as are water rights and intangible property. All other physical assets owned by the taxpayer in Russia are also subject to the tax, which is calculated based on their depreciated book value.
  • Unified Social Tax. Companies are required to pay the Unified Social Tax based upon the wages the company has paid. This tax is collected at the federal level, and it is then distributed among the Pension Fund, the Social Security Fund, and the Mandatory Medical Insurance Fund. The tax is paid on a monthly basis. Salaries paid to foreign expatriates working in the Russian Federation are also subject to the tax.
  • Personal Income Tax. Residence in the Russian Federation for 183 days or more in any calendar year qualifies an individual as a Russian tax resident, who pays personal income tax on all his or her income—no matter where it was earned. Individuals who are not tax residents are still subject to tax on any income received from Russian sources. They may need to file annual tax returns with the tax authorities, even if they were only in the Russian Federation for a partial year.

A Local Law Firm That Understands International Corporate Taxes in Russia

Dealing with international tax law in Russia can be arduous. The tax attorneys with Jus Privatum skillfully take over many required tasks and ensure that foreign businesses are able to successfully:

  • File the right tax documentation
  • Complete necessary tasks
  • Adhere to important time limits
  • Avoid additional fines and penalties
  • Handle unexpected challenges
  • Adjust to changes in the Russian tax code
  • Understand what is required
  • Translate key legal documents
  • Handle taxation issues right the first time
  • Mitigate tax mistakes from the past
  • Otherwise navigate through the Russian legal environment and tax system

If you would like to talk about how we can help your business get started in Russia, or if you have run into taxation issues with a current business or investment, don’t hesitate to reach out to us at our Moscow, Saint Petersburg, or Dusseldorf offices for assistance.