Russian personal income tax

Russian personal income tax Code was created, adopted and implemented in three stages. The first part, enacted July 31, 1998, also referred to as the General Part, regulates relationships among taxpayers, tax agents, tax-collecting authorities and legislators, tax audit procedures, resolution of disputes, and enforcement of law.

The second part, enacted on August 5, 2001, defines specific taxes, rates, payment schedules, and detailed procedures for tax calculations. 2003 with additions like the new corporate profits tax section and the new simplified tax system for small business. The Code is subject to regular changes which are effected through federal laws. The Code is designed as a complete national system for federal, regional and local taxes but excludes customs tariffs. Rules and rates of regional and local taxation must conform to the framework established by the Code.

Taxes or levies not listed explicitly by the Code or enacted in violation of its specific provisions are deemed illegal and void. The Russian tax system tends to use moderate flat or regressive tax rates. It is highly centralized for a federal state and relies heavily on proceeds from oil and natural gas corporations, who themselves are mostly state owned. In his February, 1995 presidential address Boris Yeltsin proposed to re-centralize and streamline the tax system through a unified Tax Code. Individual property tax is explicitly authorized by the Code but exists as a standalone law.