The Russian tax system covers the aggregate of all taxes and levies adopted in Russia as well as the administrators (state authorities) and payers of taxes and levies. The Russian tax system includes:
The interaction of the above elements and the integral approach to addressing taxation objectives form the Russian tax structure, which has three levels:
The tax level depends on the level of the public budget to which such tax is to be paid. Since the Russian tax system has a three-level structure, legislation on taxes and levies also has three levels:
In addition to the above, the Russian Finance Ministry and the Russian Federal Tax Service draw up orders, clarifications, explanations, letters and other instruments necessary to give greater specificity to the provisions and articles of the Tax Code and of federal laws in the area of taxation.
There are 14 taxes in Russia in total: 8 federal taxes, including state duty, three regional taxes and three local taxes. There are five special taxation systems that stand somewhat apart. There are also insurance contributions and a new experimental taxation regime for the self-employed which was introduced in 2019.
Federal taxes have equal rates and rules for their calculation and payment across the whole country. Regional taxes are approved by the Tax Code at the federal level. Regional authorities, however, are entitled to change the conditions of taxation at their own discretion to the extent established by the Tax Code, as well as to introduce and modify special taxation regimes. Local taxes are also approved by the Tax Code, while local authorities are authorised to amend and supplement them to the extent permitted by the Tax Code.
There are five taxation systems in Russia, along with an experimental regime which was introduced in 2019. Companies choose one of them based on their objectives, lines of business, headcount, number of employees, their assets and other factors.
Russian legislation allows for a mixed taxation system to be used. This opportunity is available for most individual entrepreneurs and companies. For example, you can combine the STS and PTS.
The fundamental principles of the Russian tax base were laid down back in 1992 and have undergone almost no changes since. However, there are regular amendments of laws, for both individuals and legal entities alike.