General information about taxes in Russia

Taxation is an integral part of any business. By the tax the following is meant. Taxation is an integral part of any business.


 

Tax is a mandatory, non-refundable individual payment, collected from organizations and individuals in the form of alienation of their funds, which are in their property or in economic running or operational management for the financial support of the state and (or) municipal authorities (Section 1, Art. 8, the Tax Code).

 

Fee (due) is a mandatory payment charged from organizations and individuals, the payment of which is a condition of legal actions performed by the state agencies, local governments, other competent authorities and officials in relation to the payers, including the provision of certain rights or permits (licenses) (paragraph 2 of Art. 8, the Tax Code).

Responsibility to pay the legally established taxes and fees (dues) is fixed in paragraph 1, Article 3 of the Tax Code of the Russian Federation (the Tax Code), which determined that “... each person must pay the legally established taxes and fees (dues)”.

Federal taxes and fees (dues) include taxes and fees, which are set up by the Tax Code and are to be paid on the entire territory of the Russian Federation (except for cases of special tax regimes).

The regional taxes are taxes that are set up by the Tax Code and the laws of the Russian Federation subjects on taxes and are mandatory payments on the territories of relevant subjects of the Russian Federation (except for cases of special tax regimes).

Local taxes are taxes that are set up by the Tax Code and tax regulations of municipal representative bodies and are to be paid on the territories of relevant the municipalities (except for cases of special tax regimes).

In addition, the Tax Code establishes special tax regimes, which may provide for exemption from the obligation to pay certain federal, state and local taxes and fees listed above, replacing them with other taxes.

Special tax regimes are set up by the Tax Code and applicable in the cases and manner stipulated in the Tax Code and other legislative acts on taxes and fees (dues).