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What are the social charges for companies in Russia? All Know Social Security Charges Russia
Introduction
Russia is a country that attracts more and more foreign investors. However, before setting up in this country, it is important to understand the social charges that companies must pay. Social charges are compulsory contributions that employers must pay to finance the social security of their employees. In this article, we will explore corporate payroll taxes in Russia.
Social charges in Russia
In Russia, social charges are divided into two categories: social security contributions and payroll taxes. Social contributions are compulsory contributions that employers must pay to finance the social security of their employees. Payroll taxes are taxes that employers must pay on the wages of their employees.
Social security contributions
Social security contributions in Russia are calculated on the basis of the employee's gross salary. Social contributions include contributions for social security, health insurance, unemployment insurance and pension insurance. Contribution rates vary according to the category of employee and the type of business activity.
The social security contribution rates are 30% for employers and 2,9% for employees. The contribution rates for health insurance are 5,1% for employers and 2,1% for employees. Contribution rates for unemployment insurance are 1,2% for employers and 0,2% for employees. Contribution rates for pension insurance are 22% for employers and 6% for employees.
payroll taxes
Salary taxes in Russia are calculated on the basis of the employee's gross salary. Tax rates vary depending on the employee's salary. Employers must pay a 13% tax on the salaries of their employees.
Social benefits in Russia
In addition to payroll taxes, employers in Russia must also provide social benefits to their employees. Benefits include paid vacation, sick leave, maternity leave and paternity leave.
Employers must provide a minimum of 28 days paid vacation per year to their employees. Employers must also provide paid sick leave to their employees. Employees are entitled to paid sick leave of 100% of their salary for the first 10 days of illness and 80% of their salary for the following days.
Female employees are entitled to paid maternity leave of 140 days. Employees are also entitled to 14 days paid paternity leave.
Tax advantages for companies in Russia
In addition to social charges, companies in Russia can benefit from tax advantages. Tax advantages include tax reductions, tax exemptions and tax credits.
Companies that invest in special economic zones in Russia can benefit from a reduction of 0% to 5% of profit tax during the first five years of activity. Companies that invest in high-tech projects can benefit from a 50% reduction in profit tax.
Companies that create jobs in disadvantaged regions can benefit from an exemption from profit tax for the first five years of activity. Companies that invest in research and development projects can benefit from a tax credit of 150% of research and development expenses.
The challenges of social charges in Russia
Although social charges in Russia are relatively high, there are challenges for employers when it comes to paying these charges. Employers may encounter difficulties in paying social security contributions on time. Employers may also encounter difficulties in calculating social security contributions correctly.
Employers may also have difficulty providing benefits to their employees. Employers may find it difficult to provide paid time off to their employees due to the financial burden it poses.
Conclusion
In conclusion, social charges in Russia are an important element to take into account for companies wishing to establish themselves in this country. Social charges include social security contributions and payroll taxes. Employers must also provide benefits to their employees.
Although social charges in Russia are relatively high, companies can benefit from tax advantages. However, employers may encounter difficulties in paying social security contributions on time and in providing social benefits to their employees. It is therefore important for companies to understand the social charges in Russia and plan accordingly.
