Doing business in Russia 2016
In recent years, Russia has made a number of significant changes to its tax legislation, bringing the Russian tax system closer to OECD / G20 standards and making the country a more predictable place for doing business. Russia has significantly reworked its transfer pricing rules and introduced rules on controlled foreign companies, the beneficial ownership concept, the concept of tax residency based on management and the control principle in line with OECD guidelines and the BEPS initiative. The government also has negotiated changes to a wide range of Double Tax Treaties (including ones with major European holding jurisdictions) in order to improve transparency and boost the attractiveness of Russia as an investment destination.
At 20%, Russia’s main profit tax rate remains one of the lowest among major economies, and the government has introduced a number of tax incentives that can reduce the rate even further. Special tax regimes have been established for specific regions and industries to encourage investment and innovation. This guide provides an up to-date overview of Russian tax policy and legislation relevant for companies considering doing business here.