December 2016 Credit Management magazine

COUNTRY FOCUS
continued from page 33
>
INTELLECTUAL PROPERTY
Russia has signed various international treaties on
intellectual property rights and grants patent protection
for 20 years from the date of the application, subject
to an annual payment. Patent protection for medicine,
pesticide or agrochemical products can be extended
for another five years with special permission. The
Federal Service for Intellectual Property, Patents and
Trademarks has responsibility for intellectual property.
As the World Intellectual Property Review has noted, the
examination and registration of intellectual property
rights by the Russian Federal Service for Intellectual
Property (Rospatent) is done efficiently and without
unnecessary delay. Rospatent and the IP Court issue
decisions on time and treat domestic and foreign
applicants equally.
TAX AND CONSIDERATIONS
Legislation on taxes and charges is based upon the tax
code which is administered by the Federal Tax Service.
As Russian commercial legislation, and tax legislation in
particular, contains provisions which can be interpreted
in more than one way, they often overlap or conflict.
Advice on tax and legal issues is highly recommended
especially as accounts must meet International
Accounting Standards (IAS) and Russian accounting
standards.
It’s worth noting that there are 28 Special Economic
Zones which grant certain tax, customs and other
concessions to residents and investing companies.
There are four types of zone – industrial and production;
technology and innovation; tourist and recreational; and
port.
VAT is generally applied at a standard rate of 18
percent, corporate profits are taxed at a maximum of
20 percent on net income (companies pay nine percent
tax on dividend income), payments by employers to
the Russian Pension Fund, Social Insurance Fund and
Medical Insurance Funds amount to 30 percent of total
payroll, and personal income tax is paid at a flat rate of
13 percent. Foreign nationals are considered a Russian
tax resident if they live in Russia for over half a year in
12 consecutive months. Non-residents are also subject
to personal income taxation on Russia generated
income.
The Federal Customs Service regulates all goods
imported into Russia and as with other nations, the
import of certain goods requires a licence.
ENTRY REQUIREMENTS
Lastly, every visitor needs a valid passport and visa.
The rules are strict and detail is available at eng.
customs.ru/.
Russia has signed various
international treaties on
intellectual property rights and
grants patent protection for
20 years from the date of the
application, subject to an annual
payment. Patent protection
for medicine, pesticide or
agrochemical products can be
extended for another five years
with special permission.
34 December 2016 www.cicm.com
The recognised standard