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Russia Insurance Contributions 2010February 2010From 1.1.2010 the new federal law on insurance contributions came into force. According to this law the Unified Social Tax , UST , is repaced by specific types of social security to be paid to four separate non-budgetary funds. Pension fund, social security fund, federal medical fund and territorial medical insurance fund. For the full article by ABU Accounting Services about Russia Insurance Contributions 2010 Russia Cyprus Double Taxation TrearyMay 2009Russia and Cyprus signed on April 16 , 2009 a new protocol to the existing agreement between the two countries. The new treaty is expected to be ratified in 2009 and effective from 1.1.2010. After entering into force Cyprus will be removed from the Russian "Blacklist " of countries failing to cooperate with the Russian tax authorities. The removal will grant participation exemption for dividends received by Russian companies from Cypriot subsidiaries. In addition in future capital gain from sale of shares in rich real estate companies will be taxed, following the OECD model , in the country where the real estate is located. Russia Reduced Profit Tax 2009April 2009There are some significant changes in Russia tax laws in 2009. The 2009 corporate profit tax rate is reduced to 20%, compared to 24% in 2008. Taxpayers who purchase certain fixed assets can now depreciate 30% for profit tax calculation in the year of purchase, compared to the previous 10% rate. Employee's contribution to voluntary insurance plans are tax deductible up to 6% of the income, compared to the previous 3% celing. Russia Tax Rates 2008March 2008In 2008 there are no significant changes, compared to 2007. The Russian corporate income tax rate in 2008 is 24%. The personal income tax rate is 13% for Russians, 30% for non-residents. The standard VAT rate is 18% .There is also a reduced VAT rate of 10%. From 1.1.2008 dividend income received by Russian companies from foreign companies is taxed at 9%, compared to 15% in 2007. Russia Tax AmnestyMarch 2007On 1.3.2007 Russia declared the first tax amnesty for individuals. The amnesty relates to undeclared income from 2001 till 1.1.2006. Individuals declaring till 31.12.2007 on such income will pay a 13% tax rate,the same rate as the flat tax rate in Russia, without facing any criminal charge. The money can be transfered directly to the Federal Tax Service bank account, without having to deal directly with the tax officials. The tax amnesty,which has no minimum or maximum limit, does not relate to people who were already convicted for tax evasion. The amnesty hopes to bring back to Russia some of the US 160 billion capital which fled from the early 1990's from Russia. In 2006, surprisingly,the capital inflows into Russia were about US 41 billion. Russia TaxesJanuary 2007From 1.1.2007 losses from previous period can be fully carried forward against the present year income. before 1.1.2007 offset was limited up to 50% of the current year income. From 2007 R&D expenses can be depreciated in one year, regardless of being successful or unsuccessful. Russia - Kaliningrad Special Economic Zone (SEZ)April 2006From 1.4.2006 there are new tax incentives for investors in Kaliningrad SEZ. Companies investing in production a minimal sum of 150 million Rubles within 3 years are exempt from Russia corporate tax for 6 years, with additional 50% corporate tax reduction for the next 6 years. There are additional benefits, including exemption from customs duties. Russia Inheritance and gift taxJuly 2005There is a new law,effective from 1.1.2006 Main changes: -Abolition of the inheritance and gift tax. -Close relatives would pay no personal income tax on gifts, e.g. real estate, cars, shares etc. -Non close recipients would pay personal income tax on gifts. Russia Income taxJanuary 2005From 1.1.2005 Russia new income tax rate for dividend income paid within Russia is 9%(previous rate-6%). |
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