Russian Federation

Corporate - Taxes on corporate income

Last reviewed - 31 December 2019

Corporate income tax (CIT)

Russian legal entities pay tax on their worldwide income (credit relief is available for foreign tax paid, up to the amount of the Russian tax liability that would have been due on the same amount under Russian rules).

The maximum CIT rate for all taxpayers in the Russian Federation has been set at 20%. In the period 2017 through 2024, the following allocation proportion applies: 3% of CIT revenues is allocated to the federal budget, whereas 17% is allocated to the budgets of the relevant constituent regions. The rate of tax payable to regional budgets (17% out of 20%) may be reduced under regional law for certain categories of taxpayers. The reduced regional rates introduced before 3 September 2018 will apply until the date of their expiry but not later than 1 January 2023.

Foreign legal entities (FLEs) pay tax on Russia-source income derived through a permanent establishment (PE) at 20% and are also subject to withholding tax (WHT) on income from Russian sources not related to a PE (at rates varying from 10% to 20%, depending on the type of income and the method used to calculate it).

Local income taxes

There are no provincial, municipal, or local taxes on income in the Russian Federation.