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Operating · 01

Tax advisory & compliance in Russia

CIT, VAT, withholding tax and FTS audit defence.

End-to-end tax support for foreign companies in Russia — corporate income tax, VAT, withholding tax, cross-border structuring and FTS audit defence — coordinated with your wider operations rather than handled in isolation.

Chinese companiesUAE investorsTurkish groupsIndian companiesEU subsidiaries
Book a call Estimate VAT & profit tax → ← All expertise
At a glance
ScenarioOperating in Russia
Reporting cycleMonthly · Quarterly
LeadSenior tax adviser

Overview

For a foreign-owned company, tax in Russia is rarely about the headline rate — it is about staying compliant across several moving parts at once. Corporate income tax (25% from 2025), VAT (22% from 2026), withholding on cross-border payments and the supporting documentation all interact, and a gap in one area typically surfaces during an FTS check in another. We handle the full cycle as a single engagement so the pieces stay consistent.

Our work begins with your structure: how the Russian entity sits within the wider group, where value is created and how intra-group flows are priced and documented. From there we run routine compliance — filings and payments on the statutory calendar — while advising on the decisions that carry real exposure: treaty relief on dividends, interest and royalties, permanent-establishment risk, and the substance you need to support beneficial-ownership claims.

Where a review or audit is already underway, we assess exposure before inspectors arrive, prepare responses to information requests and represent your position alongside your team. The aim is a defensible, well-documented tax position that a head office can rely on — not a set of memos that sit unread.

+ what we offer
01
Corporate income tax (CIT)

Russia raised its CIT rate from 20% to 25% from 1 January 2025. We handle quarterly advance payments, the annual return (due 25 March), tax base reconciliation, loss carry-forward tracking and deductibility review. For IT companies qualifying for the 5% rate — accreditation support and revenue-threshold monitoring.

Quarterly advance payment calculation and filing
Annual CIT return (due 25 March)
Tax base reconciliation and deductibility review
Loss carry-forward tracking
IT 5%-rate accreditation and threshold monitoring
02
VAT compliance (22% from 2026)

The standard VAT rate increased to 22% from 1 January 2026. We prepare quarterly returns, optimise input VAT recovery, handle tax-agent VAT on foreign supplier payments and manage refund applications. For foreign digital-service providers: FTS registration and quarterly filing at the new rate.

Quarterly VAT returns at the 22% rate
Input VAT recovery optimisation
Tax-agent VAT on foreign supplier payments
VAT refund applications
Digital-services FTS registration and filing
03
Withholding tax & treaty planning

Dividends, interest and royalties paid to foreign shareholders are subject to Russian withholding tax, ranging from 0% to 20%. We assess treaty eligibility, coordinate residence-certificate documentation, calculate WHT and file the tax-agent return. Active treaties include China, UAE, Turkey and India.

Treaty eligibility assessment
Residence-certificate documentation
WHT calculation on dividends, interest, royalties
Tax-agent return filing
Beneficial-ownership support
04
Cross-border tax structuring

Intercompany payment planning, thin-capitalisation analysis (Russia’s 3:1 debt-to-equity limit for related-party debt), permanent-establishment risk review and inbound investment structuring — so excess interest is not reclassified as a deemed dividend.

Intercompany payment planning
Thin-capitalisation analysis (3:1 limit)
Permanent-establishment risk review
Inbound investment structuring

What's included

Corporate income tax (CIT) compliance and filings Read insights: Tax & compliance VAT compliance and returns Read insights: Tax & compliance Withholding tax and treaty planning Read insights: Cross-border Cross-border tax structuring Read insights: Cross-border Tax audit and FTS representation Read insights: Tax & compliance
Thin capitalisation and PE risk review
+ fixed-scope package
VAT for Digital Services
VAT exposure assessment
Registration where required
Marketplace & cross-border reconciliation
Ongoing VAT compliance
Timeline
Setup + ongoing
Pricing
Fixed fee, quoted in 24h
Get a quote →

Typical situations we handle

You're entering Russia and need a tax-efficient holding and operating structure.

CIT filings or transfer pricing files need review before a regulatory check.

Cross-border payments to your group are exposed to withholding tax.

Example · Recent work
UAE holding, Russian distribution subsidiary

The company had filed at the wrong CIT rate after the 2025 increase to 25% — a 1C configuration error. We identified the underpayment, filed amended returns and corrected the position before the audit window, avoiding penalties. CIT and VAT compliance now handled on an outsourced basis.

+ how we work

A clear, coordinated process

01
Structure review

We map the Russian entity within your group and identify the real exposures.

02
Compliance calendar

CIT, VAT and withholding filings set up on the statutory schedule.

03
Cross-border & TP

Treaty relief applied and beneficial ownership and pricing documented.

04
Audit readiness

Positions kept documented and defensible for any FTS review.

+ in-house vs outsourced

Building it in-house, or outsourcing to us

Factor
In-house
With TaxWell
Russian expertise
Depends on hire
Big Four background team
1C configuration
Separate cost
Included
FTS audit representation
Additional legal fee
Included in engagement
Languages
Usually Russian only
EN · RU · 中文 · Türkçe
Scalability
Fixed headcount
Scales with volume
+ questions

Frequently asked

Do you handle both filing and planning?

Yes — routine CIT compliance and advice on structure, transfer pricing and cross-border tax as one engagement.

Can you support a tax audit already underway?

We do — pre-audit exposure reviews, responses to information requests and representation alongside your team.

How is withholding tax optimised?

By applying the relevant double-tax treaty correctly and documenting beneficial ownership and substance where required.

From our insights

All articles
Tax & compliance · 4 min
3-NDFL tax return in Russia: complete guide for foreign individuals
Tax & compliance · 5 min
Agent vs distributor in Russia: tax risks and permanent establishment
Tax & compliance · 4 min
Buying and owning property in Russia as a foreigner: tax guide 2026
Tax & compliance · 4 min
CFC Reporting for Russian Tax Residents

Other expertise

02
Transfer pricing
06
Accounting (RAS)
03
Legal & corporate
We work with
Chinese companiesUAE & Turkish subsidiariesIndian companiesEU companiesInternational groups
We work in
EnglishRussian中文Türkçe
+ what happens when you contact us
01
You send us a question

By email, WhatsApp, Telegram or WeChat. Describe your situation briefly — we don’t need everything upfront.

02
We respond within 24 hours

A named adviser replies — not a generic inbox. We confirm whether we can help and propose a call if needed.

03
30-minute intro call

We ask about your situation, Russian entity structure and what you need. No charge. In English, Russian or Chinese.

04
Engagement letter

Clear scope, fee and timeline. We start on receipt of the signed letter. No retainer lock-in on project work.

Speak to a senior adviser about Tax & compliance

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Practical support for international business in Russia.

Moscow · Dubai · St. Petersburg
Services
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Market focus
China desk UAE Turkey Europe
Industries
IT & SaaS Trading & import/export Manufacturing E-commerce
Insights
3-NDFL tax return in Russia: complete guide for foreign individualsAccounting Outsourcing in Russia: PracticalAccounting in Russia: RAS rules and mandatory reporting for foreign companies All articles →
Contact
moscow@taxwellpartners.com
+7 (966) 976 96 27
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