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Thread: Tax and Money in Moscow

  1. #1
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    Tax and Money in Moscow

    Its me again guys, i have one more question ... Do i pay tax on any amount of money that enters my LLC bank account or i only pay tax on the interest?? i never registered a company before and never owned a company bank account before, but lets say a client pays $40,000 into my company bank account, will i have to pay %13 of that amount as tax to the government???
    How does paying tax work exactly guys... i think im getting scammed by an accountant i met online

  2. #2
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    Are you still interested in the answer? I just give you a quick heads up. It really depends on the ownership of your business and also the tax system you chose. 13% will apply if you are just regular contractor with regular tax system (like people who work for an employer). You need to register yourself as an individual business and request to use a simple tax system in the Russian IRS. It has some varieties on tax %. That % really depends on your type of business.
    I just read your other posts. Your accountant is wrong. But still I cannot answer in full without knowing your type of partnership and tax system you chose. I had been an accountant in Russia for 13 year. Now I am accountant in the USA... That is probably funny but also for 13 years.

  3. #3
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    Quote Originally Posted by Novichok View Post
    Its me again guys, i have one more question ... Do i pay tax on any amount of money that enters my LLC bank account or i only pay tax on the interest?? i never registered a company before and never owned a company bank account before, but lets say a client pays $40,000 into my company bank account, will i have to pay %13 of that amount as tax to the government???
    How does paying tax work exactly guys... i think im getting scammed by an accountant i met online


    tell the online -accountant- to take a hike. and try someone professional?
    https://welcome.accountor.ru/en/acco...SAAEgLeVfD_BwE
    There is no greater treasure then pleasure....

  4. #4
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    Quote Originally Posted by Novichok View Post
    Its me again guys, i have one more question ... Do i pay tax on any amount of money that enters my LLC bank account or i only pay tax on the interest?? i never registered a company before and never owned a company bank account before, but lets say a client pays $40,000 into my company bank account, will i have to pay %13 of that amount as tax to the government???
    How does paying tax work exactly guys... i think im getting scammed by an accountant i met online

    13% is income tax, if you're paying yourself as an employee of your own company. And if you're an employee and have TRP, PRP, or citizenship (or if you're a foreigner here in Russia but have been in the country less than 18 (??) months), then you'll have to pay social taxes on your employee salary, too. And all of those add up to about 30% of your salary!!

    Company tax for an OOO ("profit" tax, or let's just call it revenue tax) is 6% if you choose the "simplified" system ("uproshyonnaya" a.k.a. USNO), or 15% after expenses if you choose that version of the USNO at the beginning of the year. These are both on top of any payroll taxes. So yes, this tax is paid on ANY and ALL money that enters your company account.


    Now, what I still haven't gotten a good answer to, are:

    1. Is there a list of approved company expenses to deduct from one's company's revenue, much like we have in the USA?
    (i.e. room&board on a business trip are deductible, but only if >50% if the time is "spent" on "business")

    2. If one gets a TRP, PRP, or citizenship, and expects to pay himself dividends from the company instead of a salary, which taxes still must be paid, and which can be legally avoided? I imagine you still pay the 13% NDFL income tax, but can you legally avoid those profit-killing social taxes?

    Thanks in advance to anyone who can provide some input on these topics!
    I am fascinated by Russia, this country with frigid weather, hard souls, and hot girls!

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