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Russia - Other taxes and levies

Russia - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes in Russia? If so, what are the rates for employers and employees?

Employer and employee

Employers in Russia, including Russian entities and representative offices of foreign legal entities registered in Russia pay social security contributions to statutory funds (Pension Fund, Social Security Fund and Federal Medical Insurance Fund), and contributions for insurance against injuries and professional illness. Russian legislation does not provide a mechanism for paying contributions by non-resident employers with no presence in Russia.

Social security contributions are payable only by employers. Employees are not required to contribute.

  1. Payments to statutory funds:
Fund Rate for 2012 Salary range
State pension fund 22.0% From RUB1 to RUB512,000
10.0% Over RUB 512,000
Social security fund 2.9% From RUB1 to RUB512,000
Federal medical insurance fund 5.1% From RUB1 to RUB512,000
Total 30.0% From RUB1 to RUB512,000
10.0% Over RUB 512,000

 

The above rates are applied to remuneration paid to all employees (either Russian or non-Russian) with a few exceptions, in particular:

The contributions are assessed on the gross payroll of each employee. For 2012 the cap is set at RUB512,000. The threshold is subject to annual revision.

  • Only a portion of insurance contributions to the Russian Pension Fund is payable on remuneration of foreign nationals temporary residing in Russia , i.e. only 22% is payable on remuneration before RUB512,000 plus 10% on remuneration exceeding RUB512,000.
  • No insurance contributions are payable with regard to remuneration of foreign nationals temporary residing in Russia and:
    1. either working under a fixed-term labour contract for less than 6 month; or
    2. employed under “highly qualified specialist” migration regime.

The contributions are assessed on the gross payroll of each employee. For 2012 the cap is set at RUB512,000. The threshold is subject to annual revision.

2. Insurance against injuries and professional illness

Contributions to the Social Insurance Fund for mandatory social insurance against injuries and professional illness are payable at the rate from 0,2 % to 8.5 % depending on the risk category that the employer’s activity falls into, as determined by the fund. The base for charging insurance contributions against occupational accidents and professional diseases is not limited.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Russia?

There are no specific wealth taxes in Russia.

Inheritance and gift taxes have been abolished effective of 1 January 2006. General income tax rules apply.

Individuals receiving a gift of real estate, vehicles, shares, holdings or equity interest are subject to income tax (at the rate of 13 percent for Russian tax residents and 30 percent for non-residents) unless they are considered family or close relatives in accordance with the terms of the RF Family Code. Gifts in other forms are not subject to income tax.

Real estate tax

Are there real estate taxes in Russia?

There is a local land tax which may be raised at the discretion of the local government body.

The above land tax is paid by the land owners on the basis of a tax notification send to them by the local tax authorities. Individual entrepreneurs owning land which is used in their entrepreneurial activity should calculate and pay the land tax by themselves (that is, no tax notification is issued).

Other real estate (such as, apartments, apartment houses, cottages, garages, and so on) is subject to property tax.

Sales/VAT tax

Are there sales and/or value-added taxes in Russia?

There is no sales tax in Russia.

Individuals in Russia are not liable to pay VAT.

The sale of goods (works, services) by the companies/individual entrepreneurs on the territory of the Russian Federation is subject to VAT at the rate of 10 percent or 18 percent. Sales made in foreign markets (that is, export) are subject to 0 percent rate VAT.

Unemployment tax

Are there unemployment taxes in Russia?

There are no unemployment taxes in Russia.

Other taxes

Are there additional taxes in Russia that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Local taxes

There are no additional local taxes applicable to the general assignee.

footnotes

1All information about social contributions is summarized by KPMG Limited, the Russian member firm of KPMG International, based on the Federal law #212-FZ of 24.07.09 and subsequent amendments.

2Foreign nationals are considered as temporary present in the territory of Russia if they have a migration card without a permanent or temporary residency permit.

© 2018 KPMG Limited, a company incorporated under the Guernsey Companies Act, is a member firm of KPMG International Cooperative, a Swiss entity. All rights reserved.

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