Corporate income tax : rate of tax.

From January 1, 2009 the corporate rate of income tax is 20 per cent payable at the rate of 2 per cent to the federal budget and 18 per cent to the regional budgets. The regions may, at their discretion, reduce their regional tax rate to as low as 13.5 per cent. Therefore, the effective tax rate can vary from 15.5 per cent to 20 per cent.

Dividends payable by Russian companies to domestic shareholders are taxed at 9 per cent, dividends payable by Russian companies to foreign legal entities and dividends received by Russian companies from foreign legal entities are taxed at 15 per cent.

A foreign company pays 15 per cent on dividends from the Russian companies and inter