Corporate Tax in Russia

The Russian taxation system is based on the Tax Code enabled in three stages. The Tax Code is a complex framework containing provisions about the federal, regional and local taxes applied to natural persons and legal entities. The corporate tax mainly relies on the high rates applied to Russian companies in the oil and natural gas sectors. These rates are not stated in the Tax Code, but they are decreed by the Russian government.

Who is liable for paying the corporate tax in Russia?

Both domestic and foreign companies are subject to the corporate tax in Russia. Foreign companies will pay the corporate tax only if they have permanent establishments or a management board and if they make any incomes from sources established in Russia.

Russian companies will be taxed on their worldwide earnings and, until 2012, each company in a group was taxed individually. From 2012 until 2022 the law allowed the creation of tax groups, meaning a conglomerate of companies with at least 90% ownership could apply for a consolidated tax return. However, the consolidated return applies only if some conditions are fulfilled.

Foreign companies with permanent establishments in Russia, such as representative offices, branches, divisions or agencies, will pay the corporate tax on their incomes made in Russia.

The corporate tax rates in Russia

From the 24% rate applied to corporations in Russia in 2008, the corporate tax dropped to 20% in 2009 and was raised to 25% from 2025, of which 8% goes to the federal budget and the rest of 17% goes to the regional authorities. Regions may reduce their part only for specific categories of taxpayers set by the Tax Code. Capital gains in Russia are also applied a 25% tax rate. Branches of foreign companies are not taxed when remitting incomes to parent companies.

You can rely on our Russian lawyers if you need help in registering a foreign company for VAT.

What other taxes do companies pay in Russia?

Companies in Russia will be levied other withholding taxes as part of the corporate tax. Dividends will be taxed with 13% for Russian companies and 15%, if the dividends are received by foreign companies, foreign companies that come from countries that have no tax treaty signed with Russia will be levied a 20% tax rate on interests and royalties.

Companies must also pay social contributions of 30% for incomes that go up to RUB 2,979,000 (2026) and 15.1% on the income above this sum. Contributions of 0.2% to 8.5% must also be paid for injury and professional illness contributions.

Our Russian lawyers can provide you the latest provisions of the Tax Code. You can also contact us for details about the Commercial Code in Russia.