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> Russia with a 13% flat tax That's a common misconception. Yes, personal tax rate is 13%, but your employer will have to pay for health insurance (5.1), socia
by yurymik 8y ago
> Russia with a 13% flat tax
That's a common misconception. Yes, personal tax rate is 13%, but your employer will have to pay for health insurance (5.1), social services (2.9), and pension fund (22). Overall, you get closer to 43% flat tax rate.
The big difference is - you never see these moneys in the first place. Your paycheck is a net pay, all deducts are applied by the accounting department and only 13% rate is widely advertised as one the lowest in the world.
- cpursley 8y agoInteresting, thanks for pointing this out. I have been considering becoming a Russian resident (and eventually citizen ~ yes, crazy). Do you know if self-employed people are liable for the other taxes you mentioned?
- yurymik 8y agoThere are several tax schemes available and depending on your situation (who pays your bills, employees, etc) you might be eligible for "УСН - упрощенная система налогообложения" (simplified tax system). You'll pay 6% from your income + 15% from your profit. Here's an article you might find interesting (in Russian of course): https://www.moedelo.org/club/article-knowledge/individualnyj-predprinimatel-vse-ob-ip-prostym-azykom https://www.moedelo.org/club/article-knowledge/individualnyj...
- cpursley 8y agoСпасибо!