Specific Taxes in the Russian Federation
Beyond corporate and personal income taxes, the Russian Federation imposes a diverse range of specific taxes that contribute to its fiscal landscape. These taxes encompass various aspects of economic activity and individual wealth, serving specific purposes and policy objectives.
Value-Added Tax (VAT)
VAT is a consumption tax levied on the sale of goods and services at each stage of production and distribution. The standard VAT rate in Russia is 20%, with reduced rates of 10% and 0% for certain essential goods and services. Businesses engaged in the supply of goods and services are generally liable for VAT, with some exemptions for specific transactions.
Excise Taxes
Excise taxes are levied on the production, import, and sale of certain goods, such as alcohol, tobacco products, and fuel. The rates of excise taxes vary depending on the type of product and its intended use.
Property Tax
Property tax is an annual tax levied on immovable property owned by individuals or entities. The tax base is the cadastral value of the property, and the rates vary depending on the type of property and its location.
Land Tax
Land tax is levied on the ownership or possession of land. The tax base is the area of the land, and the rates vary depending on the location and intended use of the land.
Transport Tax
Transport tax is levied on the ownership or possession of vehicles. The tax base is the engine displacement or horsepower of the vehicle, and the rates vary depending on the type and age of the vehicle.
Environmental Taxes
Environmental taxes are levied on activities that cause environmental harm, such as emissions, waste disposal, and the use of natural resources. The rates of environmental taxes vary depending on the type of activity and the level of pollution or environmental impact.
Stamp Duty
Stamp duty is a tax levied on various legal documents and transactions, including property transfers, share transfers, and certain contracts. The rates of stamp duty vary depending on the type of document or transaction.
Inheritance Tax
Inheritance tax is levied on the transfer of property or assets upon the death of an individual. The tax base is the value of the inherited property or assets, and the rates vary depending on the relationship between the deceased and the beneficiary.
Gift Tax
Gift tax is levied on the transfer of property or assets without consideration. The tax base is the value of the gifted property or assets, and the rates vary depending on the relationship between the donor and the recipient.
Taxpayers Subject to Specific Taxes
The categories of individuals or entities liable for each type of tax vary depending on the nature of the tax. For instance, VAT is generally payable by businesses engaged in the supply of goods and services, while property tax is payable by property owners.
Purpose and Rationale
The revenues generated from specific taxes are typically allocated to various government budgets and used to fund public services, infrastructure development, and other government initiatives. Additionally, some specific taxes, such as environmental taxes, aim to discourage harmful practices and promote sustainable behavior.
Legal Framework
The legal framework for specific taxes in the Russian Federation is established by the Tax Code of the Russian Federation and other relevant legislation. These laws outline the tax obligations, rates, and procedures for the collection and enforcement of taxes.
If delving into the depths of Russian tax rules and regulations isn't your style, and you'd rather have experts take the reins, then Heavnn is here to help.
Let us simplify your tax planning journey. Access Heavnn's blend of professional expertise and cutting-edge technology by clicking the button below.
