Simplified accounting system for a small business in Russia

Your first step is to determine whether you qualify for the Simplified Accounting System, which offers tax advantages for your business. If you are planning to enter the Russian market, you should know tax implications. This page will familiarize you with taxes in Russia, legislation and other general principles of taxation in Russia.

Listed below are the conditions which must be met in order to qualify for the Simplified Accounting System.

1. Russian legal entity is founded by a person(s) (not by another company)
2. Shareholders' capital totals less then 100 million rubles, 
3. Annual turnover must be less then 60 million rubles.

Tax allowances with the Simplified tax system

With the Simplified Accounting System your do not pay: 

• VAT in Russia (18%) from all your operations 
• Corporate Tax in Russia (20%) 
• Tax on Wealth (2%).

Simplified Accounting Tax: choose how to pay your Corporate Tax in Russia

Rather then paying the 3 taxes mentioned above, you must pay only one Corporate Tax for the Simplified Accounting System described below:

• 6% from your turnover (entire revenue is a tax base)
• 15 % from your gross profit (revenue minus costs)

Please be aware that your social security taxes in Russia will be also greatly reduced.

• Social security contribution Tax rate is 34,2% from staff payroll
• Rate for Personal Income Tax in Russia is 13% from staff payroll

You can buy a special report about Taxation in Russia with analysis of your business model and calculation of all taxes in Russia you have to pay after your company has been set-up in Russia.