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Simplified tax system in Russia

Who is eligible for the simplified tax system in Russia (USN)?

A business entity is generally eligible for the simplified tax system (USN) if it is incorporated in Russia and other organizations have no stake exceeding 25% in the business entity. In other words, individuals must have at least 75% stake in common stock.

Companies may be eligible for USN if they meet several other requirements:

  • No organizations hold a stake of more than 25% in the company;
  • The company is a domestic legal entity;
  • The company does not employ more than 100 persons (average per year);
  • The company’s total depreciable fixed asset value does not exceed RUB 100 million;
  • The company’s total sales for 9 months does not exceed RUB 45 million.

Companies which operate under USN are exempt from income tax and VAT.

How to calculate the tax payable under the simplified tax system?

Taxpayers operating under the simplified tax system pay a single tax on their income.

Taxpayers are entitled to choose their taxable amount – either gross or net income – and have to pay either 6 percent on gross income or 15 percent on net income.

Single tax liability must not be lower than the minimum tax which is set at 1% of gross income.

Single tax returns must be filed with tax authorities by March 31st following the reporting year, and there is no need to file any interim tax returns.

How can Accountor help?

Accountor Russia’s tax experts can help you assess whether applying for the simplified tax system would be advantageous, as well as help with overall tax planning. We have been assisting international companies in Russia since 1992 and are always happy to help.