Plain-language definitions of the terms foreign businesses meet most often in Russia — from CIT and VAT to HQS, RAS and CFC. Each links to the relevant service.
A foreign company controlled by a Russian tax resident. Controlling persons must file notifications and may pay tax on undistributed CFC profit above the threshold.
Related: CFC reporting →The registered capital of a Russian company, deposited on formation. The statutory minimum for an LLC is ₽10,000.
Related: Company registration →Tax on the profit of a Russian company, charged at a standard 25% from 2025. Foreign-owned entities pay CIT on their Russian-source profit; residents on worldwide profit.
Related: Tax & compliance →Rules governing cross-border flows and foreign accounts, including notification and reporting obligations for companies and residents.
Related: Currency control →A treaty that allocates taxing rights between two countries and can reduce withholding on dividends, interest and royalties. Several treaties are currently partially suspended.
Related: Tax & compliance →Russia’s tax authority (ФНС), responsible for registration, filings and audits. Its queries and audits are a key compliance risk to prepare for.
Related: Tax & compliance →A work-permit route for foreign professionals, based on a salary threshold rather than a quota. The cleanest path for foreign directors and senior hires.
Related: Immigration · HQS →The limited liability company — the most common vehicle for foreign investors in Russia. It can hire, bank and invoice in its own name; minimum charter capital ₽10,000.
Related: Company registration →Tax on individuals’ income, withheld from salary by the employer. Residents pay a progressive 13–22%; most non-residents 30%.
Related: Personal income tax →A taxable presence a foreign company can create in Russia through a fixed place of business or dependent agent, triggering Russian profit-tax obligations.
Related: Tax & compliance →The statutory basis for bookkeeping and reporting in Russia. Differs from IFRS, so foreign groups keep RAS books and reconcile to IFRS for group reporting.
Related: Accounting (RAS) →Registered presences of a foreign company. A representative office cannot trade; a branch can, but both differ from an LLC in tax and liability terms.
Related: Company registration →An individual present in Russia for 183+ days in a 12-month period is generally a tax resident, which changes what income is taxed and what must be reported.
Related: Tax residency →Rules requiring related-party transactions to be priced at arm’s length, with documentation for controlled transactions above statutory thresholds.
Related: Transfer pricing →Indirect tax on the sale of goods and services, at a standard 22% from 2026, with 10% and 0% categories. Recoverable on qualifying business inputs.
Related: Tax & compliance →Tax deducted at source on income paid to a foreign company — dividends, interest, royalties. Domestic rates can be reduced under an active treaty.
Related: Tax & compliance →Practical support for international business in Russia.