Organizations on basic taxation system pay the following taxes:

• corporate income tax at a rate of 20%, with the exception of a few preferential categories of taxpayers;
• VAT at the rate of 0%, 10%, 20%;
• corporate property tax at a rate of up to 2.2%.

Individual entrepreneur (IP) on basic taxation system pay the following taxes:

• personal income tax at the rate of 13% (if the entrepreneur was a resident of the Russian Federation in the reporting year);
• VAT at the rate of 0%, 10%, 20%;
• personal property tax at a rate of up to 2%.

You can be on basic taxation system for the following reasons:

• the taxpayer initially does not meet the requirements and restrictions provided for the preferential tax treatment, or later ceased to meet them;
• a business man needs to be a VAT payer;
• the taxpayer falls into the category of exemption for income tax (for example, medical or educational organization);
• just because of ignorance of the fact that there are other tax systems.

The object of taxation here is the profit, that is, the difference between the income received by the organization on the basic taxation system and the expenses incurred. The income recorded for income tax includes sales revenue and non-operating income. A lot of businessmen disputes with tax authorities provoke costs, reducing the tax base. The more expenses we manage to confirm, the less tax will be payable, so it is natural that the tax authorities assess the reasonableness of expenses very seriously. The tax code imposes on the expenses declared by the taxpayer two maim requirements: 

• economic feasibility;
• firm documentary evidence.

The simplified taxation: is one of the tax regimes, which implies a special procedure for paying taxes and is aimed at small and medium businesses. This tax system has two options that you may choose:

• you can choose the object of taxation net revenue of your company - 6% and no VAT + 1% in case the turnover of the company exceeds around 40 000 Euro in a year;
• or you can choose the object of taxation net income of your company reduced by the amount of expenses incurred - 15% and no VAT.

The simplified taxation system may be used if the company has less than 100 employees, less than 150 mln rubles annual turnover (around 2 million Euro), and company stakes in the capital less than 25%.

In connection with the use of the simplified taxation system, taxpayers (LLC) are exempt from taxes paid in connection with the use of the general taxation system:

•  tax on personal income in respect of income from business activities;
• tax on property of individuals, on property used in business activities;
• value-added tax, with the exception of VAT paid when importing goods at customs, as well as when fulfilling a simple partnership agreement or a trust management agreement for property).

ENVD is a special preferential tax regime for small businesses that can significantly reduce the tax burden. ENVD can be applied on an equal basis to organizations and individual entrepreneurs if they fulfill the requirements of article 346.26 of the Tax Code of the Russian Federation, including:

• the number of employees is no more than 100 according to the average number of employees;
• the area of the visitors' service hall for catering enterprises or the sales area is limited to 150 sq. m. m .;
• organization or SP should not belong to the largest taxpayers.

ENVD has certain limitations - it can be applied only in the provision of services and retail trade, with a specific list of activities independently established by municipalities. 

There are territories, for example, Moscow, where this tax regime does not apply at all.

Imputed tax does not directly depend on income received, the tax base is calculated using a special formula - DB * FP * K1 * K2, where:

DB - basic yield per month;

AF is a physical indicator;

K1 - deflator coefficient;

K2 - corrective reduction factor.

The values of DB and OP are given in Article 346.29 of the Tax Code of the Russian Federation, K1 is established annually by the Ministry of Economic Development of the Russian Federation, and K2 is accepted by local authorities. 

As a result, the amount of imputed tax will change from year to year, so taxpayers need to know about changes in ENVD.

The support of agricultural producers is one of the priorities of domestic economic policy in many countries of the world. Russia is no exception. The single agricultural tax, is one of the elements of such a policy. Agricultural producers and fishing enterprises have the right to apply this preferential regime.

The tax rate is 6%.

The object of taxation is income reduced by the amount of expenses, and the tax base is the monetary expression of such income. The rules for recognizing income and expenses for the calculation of agricultural tax are very similar to those used in calculating the tax base for calculating the simplified tax system under condition Revenues minus expenses.

Who can use the single agricultural tax?:

Full characteristics of taxpayers eligible for UAT are given in Art. 346.2. NK RF. They can only be:

• Organizations and individual entrepreneurs, as well as agricultural consumer cooperatives that produce, process and sell agricultural products. This condition must be considered comprehensively, that is, to take into account all these requirements. Just processors and distributors of agricultural products are not eligible for this special tax regime.
• Town-forming and village-forming Russian fisheries organizations, provided that the number of employees, taking into account the family members living with them, is at least 50% of the population of this locality. This also includes fishing artels (collective farms). In this case, fishing must be carried out on vessels of a fishing fleet belonging to the right of ownership, or on the basis of chartering agreements.
• Organizations and individual entrepreneurs who provide services to agricultural producers in the field of crop and livestock production.

Restrictions in connection to the single agricultural tax?:

• Manufacturers of excisable goods (alcohol, tobacco, etc.), as well as those involved in the gambling business.
• In order to be able to switch or retain the right to use the single agricultural tax, the taxpayer must fulfill the condition that the share of income from the sale of agricultural products or fishing catch is at least 70% of its total income.
• If the average annual number of fisheries organizations and individual entrepreneurs applying the single agricultural tax does not exceed 300 people. For agricultural organizations there is no such requirement.
• There are no restrictions on the amount of income received, provided that the requirement for a share of income of at least 70% is followed.

Registration of a company is one-stop shop procedure following which the registering authority not only makes a business registration, but also registering a company for taxation purposes, sending electronically the company data to extra-budgetary funds and statistical agency. There is no further need to visit any other authorities to make a registered company operational.

VAT is charged on:

• the sale of goods, works or services in the territory of the Russian Federation;
• free transfer of goods, works or services in the territory of the Russian Federation;
• transfer of property rights in the territory of the Russian Federation;
• carrying out construction and installation works for own consumption;
• the transfer of goods, works or services for their own needs;
• import of goods.

The tax base for VAT is the cost of goods, works and services sold. The total amount of tax can be reduced by the amount of tax deductions, that is, VAT imposed by suppliers or paid at customs at import. Tax rates on VAT can be 0%, 10%, 20%, in addition, there are also estimated rates in the form of 10/110 or 20/120.

According to Art. 145 of the Tax Code of the Russian Federation, organizations and individual entrepreneurs may be exempted from the VAT if in the three previous months the amount of revenue from the sale of goods (work, services) did not exceed two million rubles in aggregate.

In accordance with paragraph 3 of Art. 224 of the Tax Code of the Russian Federation, since 2015, the income of a temporarily staying foreign citizen engaged in labor activity on the basis of a patent, regardless of whether the said foreign citizen is a tax resident of Russia or not, is subject to personal income tax at a rate of 13%.

After obtaining a temporary residence permit and acquiring the status of a temporary resident, the personal income tax rate of a foreign citizen depends on his tax status - it is necessary to determine whether a foreign citizen is a tax resident of Russia or not.

In accordance with Art. 207 of the Tax Code of the Russian Federation, tax residents are individuals who are actually in the Russian Federation for at least 183 calendar days for 12 consecutive months.

According to Art. 224 of the Tax Code, if at the date of income accrual a foreign citizen stayed in Russia continuously for 183 days or more, then he is a tax resident and the personal income tax rate of 13% is applied to his income. Otherwise, the rate is 30%.

Incomes of temporarily staying foreign citizens working in Russia on the basis of a patent are subject to insurance premiums at the following rates:

•  Contributions to the obligatory pension insurance: 22%.
• Social security contributions: 1.8%.
• Contributions to the obligatory medical insurance: not accrued (Article 10 of the Federal Law of 29.11.2010 No. 326-FZ).

The rates of insurance premiums for temporarily residing foreign citizens are set as follows:

• Contributions to the obligatory pension insurance: 22%.
• Social security contributions: 2.9%.
• Contributions to the obligatory medical insurance: 5.1%.