How corporate tax works in Russia
Russia's general corporate income tax rate is 25% from 2025, split between the federal and regional budgets. Resident companies are taxed on profit, while non-residents are generally taxed on Russian-source income through a permanent establishment.
Some sectors have special rates or incentives, including IT businesses. Cross-border payments can also trigger withholding tax rules, especially on dividends, interest and royalties.
VAT and payroll costs are separate. Since 2026, VAT is 22%, and employers also have social contributions to budget for.
Tax rates at a glance
- Standard corporate tax
- 25%Standard
- Federal budget share
- 8%
- Regional budget share
- 17%
- IT company rate
- 5%
- Foreign company rate
- 25%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Local operatorsIT businessesManufacturersSubsidiariesRegional groups
Watch out for
- The 25% rate is the headline rate, but some businesses still face special regimes, reduced rates or regional incentives.
- The corporate return deadline is 25 March for the prior year, and the tax system also has quarterly advance payments for many companies.
- VAT at 22% and payroll social contributions can easily move total operating cost above the headline profit tax.
Frequently asked questions
What is the corporate tax rate in Russia?
The standard corporate profit tax rate is 25% from 2025.
Do all Russian companies pay 25%?
Not always. Some sectors, including IT, use special rates or incentives.
Is VAT separate from corporate tax in Russia?
Yes. VAT, payroll contributions and profit tax are all separate layers of the tax system.