Contents / tax base

Income is regarded to be received in kind when paid to a taxpayer by organisations or individual entrepreneurs in the form of goods (work, services) or other assets, in particular:

• payment for taxpayer's accommodation maintenance, vacation, training, etc. made by an organisation or individual entrepreneur wholly or in part.
• goods (work, services) received free of charge
• labour remuneration in kind

The tax base is calculated proceeding from the price of goods determined in accordance with Article 40 of the Tax Code (VAT, excise and sales tax included)

Date of receipt of income in kind is regarded as the date when the goods (work, services) were transferred to the taxpayer

The following types of income are regarded to be material benefit and included into the tax base:

Life and health insurance

For calculation of the tax base the following insurance payments are taken into account:

• under contracts of compulsory insurance
• under contracts of voluntary insurance of life for a term of at least five years
• under contracts which provide for compensation for hazard to life, health and medical expenses (except for reimbursement of expenses related to sanatoria and resort treatment)

Insurance premiums paid by the taxpayer's employee are subject to taxation except for the following cases:

• insurance is compulsory
• employee concludes a contract of insurance which provides for compensation of harm to life and health and (or) coverage of medical expenses of natural persons

Property insurance

• In case of destruction of insured property
• In case of damage of insured property

Dividends paid to tax residents are taxed at the rate of 6%

When dividends are paid by a Russian organisation to a tax resident, the amount of taxable income is regarded to be the difference between the sum total of dividends to be paid and the sum total of dividends received by the tax agent itself in a current reporting (tax) period. In the event of negative difference no personal income tax is paid. If the difference is positive, its amount is taxed at 6% rate.

Dividends paid by a Russian organisation to a tax non-resident are taxed to the full amount (without application of the above-mentioned rule) at the rate of 30%

The tax amount paid on dividends received by a tax resident from sources outside the RF is calculated independently by the taxpayer at the rate of 6%

For interest on deposits in Russian banks exceeding the CBR refinancing rate for Rouble deposits and 9% for deposits in foreign currency the tax base is calculated and tax due is paid by tax agents (for each amount of interest separately). The tax is withheld on the day when interest is accrued and transferred to the budget not later than the next day after that.

Calculation of interest is performed proceeding from the rate envisaged by the deposit agreement and the term during which the taxpayer's assets were in deposit.

Tax is not levied on insurance payments on contracts of voluntary insurance concluded for a term of less than five years, if the amount of such payments does not exceed the amount of insurance premiums paid by insured natural persons increased by interest calculated proceeding from the CBR refinancing rate valid at the moment of drawing up the insurance contract. Otherwise, the margin between these two amounts shall be taxed at their source at the 35% rate.

Tax is levied on the positive difference between received insurance payment (indemnity) and market price of the property at the date of conclusion of the contract increased by the amount of paid insurance premiums

Tax is levied on the positive difference between received insurance payment (indemnity) and repair expenditures (if any) plus aggregate amount of paid insurance premiums