Bases of Taxation System of the Russian Federation

Russia is one of the most important target countries of export and direct investments for finish companies. The importance of understanding the basic legal systems is a key issue while acting in Russia. Especially, the basis of Russian taxation is vital to know, before starting business activities with legal and economical consequences. The main problem has been to understand this construction of multiple laws and acts, administration levels, court system and jungle of Russian taxes as a whole picture. The purpose of the thesis is to give this overall picture of construction of Russian taxation for persons, who might be involved in business activities in Russia. The thesis is made mostly from the theoretical legal point of view, because of the nature of the taxation. Applying problems are varying throughout the Russian Federation and that is why, focusing to the special applying problems has been left out. The main prevailing taxes and fees of organisations are 24% standard profit tax, regressive unified social tax from 26% to 2%, value-added tax from standard rate of 18% to 0 %, dividends from standard 15% to special 0%, variable excise taxes and customs fees according to markets value transferred inside or imported to the territory of Russian Federation. The applying tax rates for Russian and foreign companies might differ from each other. The most important tax for resident individual persons is standard income tax of flat rate of 13% and for non-resident individual persons fixed rate of 30%. Russian taxation system has been developed significantly during last 8 years after enacted the Tax Codes. Amount of the different kinds of taxes and fees has dramatically decreased and arbitrariness of the all level authorities has been limited. Conclusion of the thesis is to show, that Russia is a potential choice for a company to do profitable business.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format