Doing Business in Russia
Special tax regimes
Doing Business in Russia 33
The Tax Code also provides special
tax regimes under which a taxpayer
is entitled to pay one single tax
instead of numerous different taxes.
This regime can be applied if certain
requirements are satisfied. Special tax
regimes include simplified tax, unified
agricultural tax, tax on imputed income
and special rules on production sharing
agreements.
Unified tax on imputed income
The local tax authorities allow certain
taxpayers to apply a unified tax on
imputed income if the taxpayers are
engaged in:
Domestic consumer services;
- Veterinary services;
Vehicle maintenance, repair and
washing;
- Leasing car parking places and car
parking services;
Passenger and cargo transportation
services (certain restrictions apply);
Retail trade and catering (certain
restrictions apply);
Certain kinds of advertising;
Accommodation provision services
(certain restrictions apply).
Unified imputed income tax is
applicable if the taxpayer satisfies the
following criteria:
The average number of annual staff is
equal to or lower than 100;
Other legal entities have contributed
less than 25% to the taxpayer's share
capital.
The unified imputed income tax is not
applied together with the simplified tax
or unified agricultural tax.
Unified imputed income tax taxpayers
are exempt from the following taxes
(with regard to those operations subject
to this tax):
Profits tax;
VAT (except for VAT payable on
imports);
Property tax (except for tax payable
based on cadastral value).
Unified imputed income tax is levied on
a taxpayer's imputed income. Imputed
income is determined as the base
return rate of business activity during
the period multiplied by physical factors
(the area of land employed, number of
vehicles or number of staff) and other
adjusting factors.
Imputed income tax is paid at a rate
of 15%. The municipal authorities can
decrease this rate to anything within a
range from 7.5 to 15%, depending on
the taxpayer's category and thetype of
imputed activities.
The unified imputed income tax that
is payable can be reduced (to 50% of
the initial tax accrual) by deducting
insurance contributions for mandatory
pensions insurance, medical insurance
and social insurance for temporary
disability or maternity leave. It can
also be reduced for mandatory social
insurance against occupational
accidents and diseases, as well
as temporary disability payments
to employees for the first 3 days
of temporary disability paid by the
employer, and for voluntary insurance
payments under insurance contracts
covering the employer's expenses.
Tax returns and payments are due
quarterly.
Saint Petersburg
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