Some Figures

Diagram of Russian GDP

Corporation Tax Schedule of Corporation Tax Rate Rate of general taxation (which can be reduced by the regional authorities, by a maximum of 4%) 24% Dividends paid by or to a foreign company 15% Dividends paid by Russian companies either to another Russian company or to a Russian resident. 6% Revenue from international transport 10% Revenue from foreign companies (including interest) 20% Corporation Tax : Schedule of Corporation Tax Rate Rate of general taxation (which can be reduced by the regional authorities, by a maximum of 4%) 24% Dividends paid by or to a foreign company 15% Dividends paid by Russian companies either to another Russian company or to a Russian resident. 6% Revenue from international transport 10% Revenue from foreign companies (including interest) 20% All Russian and foreign companies operating from a permanent Russian base, or receiving revenue from a Russian source, are liable for tax on any profit made.

Direct Foreign Investment in Russia

SPECIAL EXCEMPTIONS FOR INVESTORS: Foreign investors can benefit from exemptions if they put benefits in kind into the assets of a company. All foreign investors may, in certain circumstances, add the value of imported goods and equipment to the assets of the company and claim exemption from VAT on these items at the time of importation. This VAT exemption is conditional upon these imported goods and equipment being listed in the comprehensive list of "technological" equipment drawn up by order State Committee for Customs on 7th February 2001, reference number: 131. EXEMPTIONS FOR SMALL AND MEDIUM SIZED COMPANIES IN RUSSIA: The authorities have undertaken to reduce and simplify the taxation on small and medium sized companies. From 1st January 2006, companies with an annual turnover not exceeding 15 million RUR ( approximately 0.47 million US$) can replace the five existing taxes ( Corporation Tax, VAT, Sales Tax, Property Tax and the Single Social Tax) by a single tax, payable quarterly. Initially a company will to chose between paying 6% on total receipts or 15% on profits but the law provides that, from 1st January 2006, companies opting for the simplified system will be taxed only on profits. France and Russia jointly signed a tax agreement on 26th November 1996 which came into effect on 1st January 2000. Diagram of the Russian institutional profile

Sources Thomson Financial Datastream, FERI, MINEFI, Agences de notation, Calculs DREE.