Paying Taxes in Russian Federation

Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project by World Bank Group, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit)
Corporate income tax 1 online 53 20% taxable profits 8.81
Federal obligatory medical insurance fund contributions 0 online and jointly 5.1% gross salaries 5.75
Social security insurance 1 online 76 2.9% gross salaries 3.14
Pension fund contribution 1 online 22% gross salaries 24.36
Accidents tax 0 online and jointly 2.5% gross salaries 2.82
Property tax 1 online 2.2% book value of property 2.08
Land tax 1 online 0.3%-1.5% cadastral value of the land plot 0.47
Transport tax 1 online various rates engine capacity of vehicles 0.05
Value Added Tax 1 online 39 18% value added 0.00
Personal income tax 0 online and jointly 13% gross salaries 0.00
Totals: 7.0   168.0     47.5

 

Taxes by type Answer  Score
Profit tax (% of profit) 8.8
Labor tax and contributions (% of profit) 36.1
Other taxes (% of profit) 2.6

 

  Answer Score
Postfiling index (0-100) 87.6
VAT refunds
Does VAT/GST exist? Yes
Frequency of VAT/GST refund submission quarterly
Does a VAT/GST refund process exist per the case study? Yes
Restrictions on VAT refund process None
Likelihood of VAT audit Highly likely
Time to comply with VAT refund (hours) 07.фев 85.6
Time to obtain a VAT refund (weeks) 20.май 66.6
Corporate income tax audits
Does corporate income tax exist? Yes
Likelihood of corporate income tax audit Unlikely
Time to comply with a corporate income tax audit (hours) 02.май 98.2
Time to complete a corporate income tax audit (weeks) 0.0 100.0
Administrative appeal process
First level administrative appeal authority Federal Tax Service
Is the appeal authority independent? Independent department within tax office
Are appeal guidelines accessible to the public? Yes
Source of appeal guidelines online/in printed publication/in person at tax office
Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
Legal time limit 1 month, can be extended up to 1 additional month