Doing business in Russia. Павел Игоревич Герасимов

insurance societies is carried out by the Bank of Russia.

      The main tasks of the Bank of Russia are to prevent and suppress violations of insurance legislation and unfair practices, ensure the protection of the rights and legitimate interests of consumers of insurance services and the effective development of the insurance business.

      The focus of insurance supervision is aimed at creating a reliable insurance environment, increasing the responsibility of the insurance business and consumer confidence in the insurance service. One of the key focuses of the Bank of Russia concerns the improvement of mechanisms for protecting the rights and legitimate interests of consumers of insurance services, as well as the development of behavioral supervision practices.

      Taxation

      Individuals

      Personal income tax is imposed on the income of Russian residents and individuals who have sources of income in Russia. Individuals are deemed residents of Russia, for tax purposes, if they are present within the Russian Federation for at least 183 days in the calendar year (which is from January 1–December 31). In this case they are subject to Russian tax on their worldwide income. Non-residents pay tax on the Russian-source income only, at a rate of 30%, as against a flat rate of 13% for residents. Residents pay tax at the rate of 13% (against 15% for non-residents) on dividends received. However, from 1 January 2021, a progressive taxation scale will be used (so-called «wealth tax»), so resident individuals whose total personal income exceeds RUR 5 million (€54,555) subject to income tax of RUR 650,000 (€7,092) plus 15% of their income.