What are payroll taxes in Russia?

Taxable income includes salaries and other forms of remuneration (including insurance and other benefits) provided by an employer to its employees. The employer withholds a 13 per cent individual income tax from almost every payment made to an employee (certain exceptions apply).

Any payments that are made to Russian employees are subject to social contributions that must be paid by the employer. The basic rates and thresholds are:

•  pension fund: 22 per cent, or 10 per cent for any amount exceeding a certain threshold that is reviewed annually;
•  social security fund and medical insurance fund: 2.9 per cent and 5.1 per cent, respectively.

The employer is also required to make contributions to the social insuance fund in accordance with the law on mandatory social insurance for industrial accidents and occupational diseases. The amount to be paid as contributions depends on the types of operations the employer is engaged in and the risks involved. The contribution rate starts from 0.2 per cent.