Doing Busines in Russia
Russia is located between Eastern Europe and Northern Asia ,Europe .İt is the largest country in the World with many natural resources. Russia is a challenging market to access.
The Civil Code of the Russian Federation provides different types of business structures for foreign investors. Currently, the following forms of commercial legal entities (for-profit) may be incorporated in Russia:
- Full partnerships;
- Limited partnerships (“kommandit” partnerships);
- Limited Liability Company (OOO);
- Joint-stock companies;
- Closed Joint Stock Company, privately held (ZAO)
- Open Joint Stock Company, publicly held (OAO)
The most common commercial organisations are a Limited Liability Company (LLC) and a Joint Stock Company (JSC)
Taxes and tax rates applied under the General system of taxation are;
Corporate income tax
Standard corporate tax rate is 18% in Croatia and for the companies whose annual income below 3 millions HRK is 12%
- Value Added Tax (VAT): General tax rate is 18%; for certain groups of goods 10%; export operations 0%.
- Corporate Profit Tax: Tax rate is 20%.
- Property Tax: The tax rate depends on the region of Russia, but cannot exceed 2.2%.
- Personal Income Tax: This is the employee’s personal obligation; the tax rate is a flat 13% for residents and 30% for nonresidents.
- Social Insurance Payments: This is the employer’s only obligation; the rate is approx 30%. There is also an additional 10% for employees that earn over a certain threshold.