Types of taxation in Russia

At presence several systems of taxation are applied in Russia:

- general taxation system (hereinafter referred to as the GTS),

- simplified taxation system (hereinafter referred to as the STS),

- unified tax on imputed income (hereinafter referred to as the UTII),

- unified agricultural tax (hereinafter referred to as the UAT).

General taxation system (classic)

This very taxation system is applied by most of organizations and individual entrepreneurs (hereinafter referred to as the IE) in Russia. In the classic GTS taxation system, taxpayers shall pay the following federal taxes and dues to the budget and to the extra-budgetary funds:

1. Profit tax.

2. Value-added tax (hereinafter referred to as the VAT).

3. Individual income tax (hereinafter referred to as the IIT).

4. Insurance contributions to the Pension Fund of the Russian Federation, to the Social Insurance Fund of the Russian Federation, to the Federal Compulsory Medical Insurance Fund of the Russian Federation.

5. Contributions for insurance against industrial accidents and occupational diseases.

In individual cases organizations and IE shall pay the following types of federal taxes and dues, in addition to the above:

6. Excise taxes.

7. Fees for utilization of fauna and for utilization of water biologic resources.

8. Water tax.

9. Mineral extraction tax.

Regional taxes and dues, which shall be paid by the taxpayers, applying the GTS:

10. Transport tax.

11. Corporate property tax.

Local tax, which shall be paid by the taxpayers, applying the GTS:

12. Land tax.

Simplified taxation system.

Transfer to the simplified taxation system and return to other regimes of taxation shall be made by the organizations and individual entrepreneurs voluntarily.

In application of the STS organizations shall be released from the duties on payment of the following taxes:

- corporate profit tax (excluding the tax, paid on incomes, obtained in the form of dividends and on transactions with certain types of promissory notes);

- corporate property tax;

- VAT (excluding VAT, payable upon importation of the goods to the territory of the Russian Federation, and in execution of operations in accordance with the contract of simple partnership (contract of joint activity), contract of investment partnership, contract of trust management of the property or concession agreement on the territory of the Russian Federation).

In case of application of the STS individual entrepreneurs shall be released from the duties on payment of the following taxes:

- IIT (in respect of incomes, obtained from entrepreneurial business, excluding tax, payable:

· on the cost of any gains and prizes;

· on interest incomes on deposits with the banks with regard to excess, on ruble deposits, of the refinancing rate of the Central Bank (hereinafter referred to as the CB) of the Russian Federation, increased by 5 %, and on contributions in foreign currency - based on 9 % per year;

· on the amount of saving on interest in case of receipt of borrowed (credit) funds by the taxpayers with regard to excess, on ruble deposits, of the two thirds of the applicable refinancing rate, established by CB of the Russian Federation, and on currency loans - based on 9 % per year;

· on the amount of dividends, etc.);

- on the property tax of individuals (in respect of the property used for entrepreneurial business);

- VAT (excluding VAT, payable upon importation of the goods to the territory of the Russian Federation, and in execution of operations in accordance with the contract of simple partnership (contract of joint activity), contract of investment partnership, contract of trust management of the property or concession agreement on the territory of the Russian Federation).

One tax shall be paid instead of the indicated taxes.

Other taxes shall be paid by the organizations and IE, applying the STS in accordance with the common procedure.

Organizations and IE, applying the STS, shall not be released from fulfillment of the duties of tax agents either.

Application of the STS allows to reduce the tax burden seriously. For use of the STS it is sufficient to send a notice to the local tax inspectorate. But hereby it is important to remember that there is a whole list of types of activity, for which it is prohibited to apply the STS.

Unified tax on imputed income

UTII is introduced for certain types of activity by regulatory legal acts of the representative bodies of municipal districts, urban districts, laws of the federal cities of Moscow and Saint Petersburg. UTII shall be applied along with the general taxation systems and other regimes of taxation, provided for by the law of the Russian Federation on taxes and dues.

The system of taxation in the form of the imputed system of taxation is a tax regime obligatory for organizations and IE in case, when they are engaged into types of activity, provide for by the law, falling within UTII, and meet the presented requirements. In case of application of the imputed system of taxation in respect of the activity related to payment of the unified tax, organizations shall be released from payment of the profit tax and property tax, and individual entrepreneurs – from IIT and individual property tax. Organizations and IE shall not be recognized the VAT payers in respect of the activity related to payment of UTII, excluding VAT, payable upon importation of the goods to the territory of the Russian Federation, either.

The unified tax shall be paid instead of the indicated taxes. Other taxes shall be paid in accordance with the common procedure.

Unified agricultural tax

The taxation system for agricultural manufacturers (UAT) shall be applied along with other regimes of taxation, provided for by the law of the Russian Federation.

Organizations and IE, being agricultural manufacturers, are entitled to transfer to payment of the UAT voluntarily.

Organizations, being UAT payers shall be released from the duty on payment of the corporate profit tax, corporate property tax and VAT, and individual entrepreneurs shall be released from the duty on payment of IIT, individual property tax and VAT. Exceptions are the same as for the organizations and IE, applying the simplified taxation system.

Other taxes and duties shall be paid by the organizations and IE, which transferred to payment of the UAT, in accordance with the common procedure.

Organizations and IE, being UAT payers, shall not be released from fulfillment of the duties of tax agents.

©The material is prepared by Pecherskaya L.A., Expert of «RosCo»

October 12, 2012

Date of foundation
company «ROSCO»
2004
Membership in professional organizations:
SRO NP «Audit Chamber of Russia»
(Certificate No 1809 dated 28.12.2009)
Chamber of Tax
Consultants
(Certificate No 78)
NP «Partnership of RSE»
(Russian Society of Evaluators)
Membership in public association:
Moscow Chamber
of Commerce and Industry
(Certificate No 123-973 dated 21.12.2009)
Non-Profit
Partnership of Turkish Entrepreneurs (RTIB)
Ratings:
A++1+++1++[%]
(as per the results of 2009 -
А++1+++1+[%])
Company
is included in the register of reliable enterprises of Moscow
Certificates of conformity:
Certificate of conformity to the requirements of GOST R ISO 9001-2008 (ISO 9001:2008)
Professional
liability
is insured