Expatriate tax ebook - Russia

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific tax

Capital gains tax
Capital gains are treated as income and subject to tax.

Inheritance, estate & gift taxes
No inheritance tax. No state duties on sale of real estate (except for capital gain tax). Gifts are subject to Personal Income Tax at the relevant rates.

Investment income
Investment income made in the Russian Federation will be considered Russian sourced and chargeable to tax in Russia.

Local taxes - Land tax
Land tax is established by local authorities and paid by the owners of land plots. Maximum tax rates can vary from 0,3% to 1,5% depending on type of the territory and apply to cadastral value of the land plot.

Real estate tax
Property Tax is imposed on value of immovable property situated on the territory of Russia owned by individual. Tax rates and tax relieves are established by local authorities.

Total value of property owned by an individual	Maximum tax rate (apply to Moscow)
Up to USD 10,700	0.1%
From USD 10,700 to USD 17,800	0.2%
Over USD 17,800	0.5%

Social contributions

Tax base for each individual employee on a cumulative total from the beginning of the year	Rate of Social Contributions
Up to USD 16,600	34%
Over USD 16,600	0%

Reduced rates of the social contributions are provided for particular areas, for example, for IT companies (14 %).

Where duties are performed in Russia, generally a charge to Russian Social contributions will arise. Social contributions are payable by the employer and deductible for Profits tax purposes.

Wages of foreign nationals residing in the Russian Federation on a temporary basis (e.g., employees of permanent establishments of foreign companies or foreign nationals employed by Russian companies) are not to be included into Social contributions base.

Stock options
Specific advice should be sought from our Russian offices.

Wealth tax
See “Real estate tax”

Other specific tax - Vehicle Owners Tax
Vehicle Owners Tax is charged from most types of self-moving vehicles which are registered with relevant state authorities. For example, tax is applicable to automobiles, motorcycles, airplanes, vessels, snowmobiles, etc. Tax rates depend on the vehicle’s power.

Information about Russia:

Last updated 16 June 2011

This information has been provided by Grant Thornton Russia, a member firm within Grant Thornton International Ltd and is for informational purposes only. Neither Grant Thornton Russia nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
Disclaimer

Contact us

For further information on expatriate tax services in Russia please contact Alexander Sidorenko

Related websites

Federal Tax Service of Russia
The Ministry of Finance of the Russian Federation

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