Russia Tax Rates
Russia transitioned from a flat 13% income tax (introduced in 2001) to a progressive system in 2021, with rates of 13% and 15%. Further reforms in 2025 introduced additional brackets reaching up to 22%. Russia features a 20% standard corporate tax rate, an 20% VAT, and relatively low social insurance contributions compared to Western Europe. The tax system is administered by the Federal Tax Service (FNS) and is influenced by the country's resource-based economy with special petroleum taxation.
Top Income Tax Rate
22%
Corporate Tax Rate
20%
VAT / Sales Tax
22%
Capital Gains Tax
15%
Detailed Tax Information
Income Tax Brackets
Russia reformed its income tax system with a progressive structure effective 2025. Rates range from 13% on income up to RUB 2.4 million, 15% on income from RUB 2.4 million to RUB 5 million, 18% on income from RUB 5 million to RUB 20 million, 20% on income from RUB 20 million to RUB 50 million, and 22% above RUB 50 million. Previously, Russia had a famously simple flat tax of 13% (introduced in 2001) that was credited with improving tax compliance. Non-residents are taxed at 30% on Russian-source income, with some exceptions.
| Income Range | Tax Rate |
|---|---|
| ₽0 – ₽2.4M | 13% |
| ₽2.4M – ₽5.0M | 15% |
| ₽5.0M – ₽20.0M | 18% |
| ₽20.0M – ₽50.0M | 20% |
| ₽50.0M+ | 22% |
Corporate Tax
Russia levies corporate profit tax (nalog na pribyl) at a standard rate of 20%, split between the federal budget (3%) and regional budgets (17%). Regions can reduce their portion to as low as 13.5% for certain categories of taxpayers. IT companies benefit from a reduced rate of 5% (temporarily 0% for 2022-2024). Special economic zones and certain territories offer further reductions.
Standard Rate
20%
Capital Gains Tax
Capital gains for individuals are generally taxed as part of ordinary income at progressive rates (13-22%). However, specific categories of investment income (dividends, securities gains) are subject to a maximum rate of 15% on income above RUB 5 million. Various exemptions apply based on holding periods. The investment tax deduction (IIS - Individual Investment Account type B) allows tax-free gains on securities held for 3+ years.
Rate
15%
VAT / Sales Tax
Russia applies a standard VAT (NDS - nalog na dobavlennuyu stoimost) rate of 22% as of January 2026 (increased from 20%), with a reduced rate of 10% for essential goods. The VAT system follows the credit-invoice method. Russia has implemented electronic VAT invoice exchange and an automated system (ASK VAT) for cross-referencing VAT claims. Small businesses using the simplified tax system (USN) are generally exempt from VAT.
Standard Rate
22%
Cryptocurrency Tax
Russia enacted legislation on digital financial assets in 2021. Cryptocurrency is recognized as property for tax purposes. Gains from the sale of digital assets are taxed as income at the standard progressive rates (13-22%), but investment income including crypto gains is capped at 15% for amounts above RUB 5 million. Mining income is taxed based on the market value of coins at the time of receipt. Since 2025, crypto mining has been explicitly legalized and regulated.
Tax Treaties
Russia has approximately 80 double taxation treaties in force, though some have been suspended or terminated since 2022 due to geopolitical developments. Russia unilaterally suspended several treaty provisions with 'unfriendly' countries in 2023, affecting withholding tax reductions. Russia's treaty network includes agreements with key trading partners in Asia, the Middle East, and Latin America. The status of treaties with EU and other Western countries remains uncertain.
Treaty Network
80
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Russia
See how much you could save by moving here from your current country.
+$11K
Tax in United States
$24K
24.4% effective
Tax in Russia
$13K
13% effective
You Save
46.6%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
