In great haste, since 1991 years Russia has had to create a tax system, which is suitable for a free market economy. In doing so, advice was taken from western specialists, but the application of the new legislation was left to the authorities, whose style is more of a military nature.

As a result, the current situation is difficult to manage for westerners due to numerous regulations and a certain lack of flexibility on the part of the authorities. For instance: it is difficult to understand why the cost of a necessary business related taxi ride is not tax deductible. In order for expenditure items to be recognised there is a strict prin-ciple of necessity, whereby the legitimacy of a business expense is often listed in a register approved by law.

We will assist you in finding a solution in conflict situations and will represent you vis-à-vis the authorities and, if necessary, in court

Company incorporation and liquidation

  • Tax comparison between activity as a representative office and as a subsidiary company
  • Tax considerations associated with the formation / closing of a business in Russia
  • Taxation of non-cash contributions to capital
  • Transfer of non-cash items from the parent company
  • Transfer to the “simplified tax system”: compliance with the criteria, tax impact

Performance of business activities in the Russian market

  • Definition of criteria for business / non-business related expenses and calculation of profits
  • Tax treatment of import and export of goods and services, incl. tax aspects of customs procedures
  • Tax treatment of services to clients when providing guarantees
  • Tax treatment of advertising campaigns
  • Tax treatment of leasing arrangements
  • Compulsory sale of currency, arising of differences in foreign exchange rates and the resulting differences in to-tals
  • Double taxation issues based on international treaties
  • Tax inspections in Russia: reasons, areas, deadlines, punitive action

Tax consultancy and assumption of the annual tax declaration

Russian income tax legislation creates multiple peculiarities for the employment of foreign staff. For instance, they are subject to different deadlines and periods of assessment. Furthermore, foreign employees are now also subject to compulsory social insurance. We ensure that all tax aspects of an employment relationship are given due con-sideration from the outset. In addition, we will prepare and submit the annual tax return of your foreign employees.