What are the tax levels in Russia?
Russia taxes income, property, and business at three levels. The Tax Code sets the rules, the rates, and the deadlines. Regions can add their own rules. The Federal Tax Service (FNS) runs most of the system. Regional and local authorities set the taxes assigned to them.
Personal income tax, corporate income tax, VAT, excise, and the mineral extraction tax.
Corporate property tax and transport tax. Rates are set in the region.
Land tax, property tax for individuals, and, from 2025, a tourist tax where a city adopts one.
Federal taxes
- Personal income tax
- Corporate income tax
- Value added tax
- Excise duties and the mineral extraction tax
Personal income tax
Residency decides whether Russia taxes your worldwide income or only income from Russian sources.
Resident
More than 183 days in Russia in a calendar year. Personal income tax on declared worldwide income.
Non-resident
Fewer than 183 days. Personal income tax only on Russian-source income, usually at a flat 30%.
Residents, 2021–2024
| Annual income | Rate |
|---|---|
| Up to 5 million rubles | 13% |
| Above 5 million rubles | 15% |
Residents, from 2025
These rates apply to salary, rent, and other income in the main tax base. The scale is progressive: the higher rate applies only to the slice of income above each threshold.
| Annual income | Average monthly income | Rate |
|---|---|---|
| Up to 2.4 million ₽ | Up to 200,000 ₽ | 13% |
| 2.4–5 million ₽ | 200,000–416,700 ₽ | 15% |
| 5–20 million ₽ | 416,700–1.67 million ₽ | 18% |
| 20–50 million ₽ | 1.67–4.17 million ₽ | 20% |
| Over 50 million ₽ | Over 4.17 million ₽ | 22% |
Non-residents
Russian-source income is generally taxed at a flat 30%. A lower rate comes with tax residency, including through the Shared Values Visa or the Golden Visa.
Some income is taxed at 13–15% instead:
- Dividends
- Income from securities and derivatives
- Taxable interest on Russian bank deposits
- Insurance payouts and pension payments
- Income from the sale of shares in Russian companies
Some categories of income can be exempt. The deductions later in this article are mostly for residents.
Corporate income tax
Companies pay this tax on profit. A Russian legal entity is taxed on worldwide income. A region can cut its own share of the tax to attract investment.
| Period | Rate | How it is split |
|---|---|---|
| 2024 and earlier | 20% | 3% federal budget, 17% regional budgets |
| From 2025 | 25% | 8% federal budget, 17% regional budgets |
| IT companies, from 2025 | 5% | Preferential rate, up from 0% |
Foreign companies
- A foreign company with a permanent establishment in Russia — a fixed place of business or significant activity here — pays the standard 25%.
- Russian-source income that is not tied to a permanent establishment is taxed by withholding, from 10% to 20%, depending on the type of income and how it is calculated.
Federal investment tax deduction
A company can claim this against federal tax. It can cover up to 50% of the cost of:
- Construction or modernization
- Further investment in fixed assets or amortizable intangible assets
Value added tax
A business with annual turnover above 2 million rubles must register for VAT. Skipping registration can bring a penalty.
| Rate | Applies to |
|---|---|
| 20% | Standard rate on goods and services |
| 16.67% | Some services, including electronically supplied services and the transfer of a going concern |
| 10% | Basic food, some children’s goods, medical supplies, and pedigree cattle |
Exemptions
- Exports of goods and the related services, including logistics
- International freight forwarding
- Supplies to diplomats, where the arrangement is reciprocal
- International passenger transport, among other cases
Simplified system, from 2025
People and companies on the simplified taxation system become VAT payers, unless income stays under the exemption.
| Income in the previous tax period | VAT |
|---|---|
| Below 60 million ₽ | Exempt |
| 60–250 million ₽ | 5% |
| Over 250 million ₽ | 7% |
Excise and the mineral extraction tax
Excise is built into the price of goods treated as harmful or luxury goods. Rates differ by product and are adjusted from time to time.
- Alcohol
- Tobacco
- Fuel
- Luxury cars
The mineral extraction tax is paid by subsoil users. The rate depends on the mineral and can also depend on economics and geology.
- Oil
- Coal
- Peat
- Gold
- Other valuable minerals
Regional taxes
Corporate property tax
- Who pays. Legal entities that own real estate.
- Base. The cadastral value, updated to follow the market.
- Rate. Set by the region, typically 0.1% to 2.2%.
Buying and selling property
- There is no purchase tax. The buyer pays a state fee to register the deal.
- A gain on sale is taxable.
- An owner who has held the property for more than five years may qualify for an exemption.
- An owner who has held it for less than five years can set the gain against losses from other investments.
Transport tax
Owners of vehicles registered in Russia pay this every year. It is calculated from engine power. The rate depends on the region. Luxury vehicles pay more because of a surcharge.
Local taxes
Land tax
- Rate. From 0.01% to 1.5%, set locally.
- Base. Cadastral value, updated from time to time.
Property tax for individuals
- Paid by individuals who own property, including real estate.
- Typically 0.1% to 2% of cadastral value, set locally.
- Some owners, including low-income families in a home, may get an exemption or a reduction.
Tourist tax, from 2025
A municipal tax on owners of hotels, recreation centers, and other places to stay. It applies only if the municipality passes a law, and only to owners on the register of temporary accommodation. The city sets the rate and any relief.
Deductions and tax-free income
Children
From 2025 the child deductions double. An employer can apply them without a separate application from the employee.
| Deduction | Amount |
|---|---|
| Second child | 2,800 ₽ a month |
| Third and each later child | 6,000 ₽ a month |
| Income limit for the deduction | 450,000 ₽, up from 350,000 ₽ |
Property
| Deduction | Amount |
|---|---|
| Buying or building a house or apartment | Up to 2 million ₽ |
| Interest on a loan for that home | Up to 3 million ₽ |
| Sale of property owned for less than three years | The expenses, or a flat 1 million ₽. For other property, excluding securities, the flat amount is 250,000 ₽. |
Education, medicine, and what is not taxed
- 50,000 ₽ per child for study at an institution with a Russian license.
- Medical care and medicine for yourself and close relatives.
- Most of these deductions are for tax residents. The annual social deduction is capped, for example at 150,000 ₽.
The following are not taxed:
- Statutory allowances and pensions
- Shares revalued because of a merger or reorganization
- Gifts and inherited property
- Donations to qualifying charities and non-profit organizations, within the stated limits
Special regimes
Highly qualified specialists
Residents are taxed on worldwide income. Non-residents are taxed on Russian-source income. A highly qualified specialist can be taxed at resident rates without waiting out the usual non-resident rate of 30%.
- The usual salary floor is 250,000 ₽ a month. Some cases are excepted.
- The job has to be in Russia.
- Income tax uses the resident scale, not the 30% non-resident rate.
- Pay is exempt from social insurance contributions. Accident insurance is still due.
Entrepreneurs
These regimes replace several taxes with one payment. Income tax, personal income tax, VAT, and property tax usually do not apply on top.
| Regime | Rate | Who it is for |
|---|---|---|
| Tax on professional income | 4% on payments from individuals; 6% on payments from legal entities | Self-employed people working on their own |
| Single agricultural tax | 6%, instead of profit tax and property tax | Farms that produce goods |
| Simplified taxation system | 6% of income, or 15% of income minus expenses | Individual entrepreneurs and companies that meet the criteria. Income tax and property tax are not charged on top. |
| Patent | 6% of income | Small businesses in listed trades. You register by taking out a patent. |
Special economic zones
A special economic zone trades tax relief and lighter administration for investment inside the zone.
| Zone | Focus | What you get |
|---|---|---|
| Industrial | Manufacturing | A lower corporate rate, customs relief, and simpler administration |
| Technological | Research and high tech | Tax relief, specialist infrastructure, and support for intellectual property |
| Tourist and recreational | Hospitality and tourism | Lower taxes and simpler licenses |
| Port | Trade and logistics at major ports | No customs duty, lower taxes, and faster clearance |
Participants can also see:
- Corporate income tax as low as 0% in some cases
- Exemption from property tax and land tax
- Duty-free import of equipment and materials
- Faster permits
A company has to meet a minimum investment, create jobs, and fit the purpose of that zone.
IT companies
Accredited IT companies pay 5% corporate income tax from 2025, up from 0%, instead of the standard 25%. Insurance contributions drop to 7.6% from the standard 30%. That 7.6% covers the pension, social, and medical funds.
They can also receive grants and research subsidies, join state export programs, and pick up regional tax breaks.
To qualify, a company needs accreditation from the Ministry of Digital Development, Communications, and Mass Media, and at least 90% of revenue from IT work: software, databases, system integration, or cloud services. The status depends on regular reports and audits.
Controlled foreign companies
A controlled foreign company is a foreign entity in which a Russian taxpayer holds a substantial interest, typically 25% or more. The Russian resident reports the company’s undistributed profit and pays tax on it once that profit is above the threshold.
- Beneficial ownership and the company’s finances have to be disclosed.
- A structure that exists only to avoid tax is open to challenge.
- An exemption can apply where the country exchanges information effectively, or where the company runs an active business rather than collecting passive income.
Planning across borders
Residents can also claim the education, medical, and mortgage-interest deductions above. Russia has double-tax treaties with more than 70 countries. A treaty stops the same income being taxed twice and can cut withholding tax on dividends, interest, and royalties.
In 2023 a presidential decree partly suspended treaty benefits with “unfriendly” countries, 49 territories in all, including the United States, the United Kingdom, Japan, and South Korea. In 2024 the U.S.–Russia agreement was suspended, so the W-8BEN relief no longer applies to Russian residents, or to Americans living in Russia.
