Tax system in Russia
Russia is not a low-tax jurisdiction. Residents face progressive personal income tax, companies generally pay 25% profit tax, VAT is 22% from 1 January 2026, and employers also have payroll social contributions.
There is no separate Russian inheritance tax or broad net wealth tax, but annual property, land and transport taxes still matter. Dividend and capital gains treatment depends on residency, asset type, and whether a treaty or special regime applies.
Tax rates at a glance
- Income tax
- 13%-22%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 13%-22%
- Corporate tax
- 25%
- Dividend tax
- 13%-15%
- VAT
- 22%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Russian residentsEmployeesLocal businessesInvestorsProperty owners
Watch out for
- VAT is 22% from 1 January 2026, and many businesses on the simplified regime cross into VAT once revenue exceeds 20 million rubles.
- Employers also face social contributions, generally 30% up to the annual base cap and 15.1% above it.
- Russia is on the EU list of non-cooperative jurisdictions for tax purposes, and FATF membership has been suspended since 2023.
- Treaty relief is patchy because several double tax treaty provisions have been suspended or limited since 2022.
Frequently asked questions
Is Russia a low-tax country?
No. Russia has progressive personal income tax, 25% corporate tax, VAT at 22% from 2026, and separate payroll and asset taxes.
Does Russia have wealth or inheritance tax?
Russia does not have a broad net wealth tax or a standalone inheritance tax, but property, land, transport and gift rules can still create tax costs.
What taxes matter most in Russia?
The main taxes to check are NDFL, corporate profit tax, VAT, payroll social contributions, property taxes, and withholding tax on dividends or cross-border payments.