Russia

{"ftc_utility":"medium","fbar_trigger_notes":"US persons holding Russian bank accounts with aggregate value exceeding $10,000 at any point in the year must file FinCEN Form 114 (FBAR). Maintaining a Russian bank account has become operationally difficult for US persons due to sanctions, correspondent banking restrictions, and many Russian banks' refusal to serve US account holders. FATCA reporting obligations apply but Russian financial institutions have largely ceased FATCA cooperation since 2022.","ftc_utility_reason":"Russia taxes residents on worldwide income at 13-22% progressive rates. Russian PIT paid on the same income taxed by the US can generate Foreign Tax Credits on Form 1116. However, the treaty suspension means taxpayers cannot rely on treaty tie-breaker rules or treaty-based reduced rates, and the FTC mechanism under domestic law only partially offsets US liability depending on income category and basket. Practical credit utility is medium because Russian rates on earned income (13-22%) are below the top US federal rates, leaving a residual US tax burden in many cases.","presence_day_count_notes":"Russia does not issue standard long-term residency visas to most US citizens under current conditions. The State Department rates Russia as Level 4: Do Not Travel. US citizens who do reside in Russia often do so on business visas, temporary residence permits, or permanent residence permits. Entry and stay have become more restricted since 2022. Meeting the 330-day physical presence test is theoretically possible for those with valid long-term status, but the practical and safety environment makes this highly unusual.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":14000,"local_tax_rate_on_earned_income":0.13,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Russian tax residents is subject to PIT at progressive rates starting at 13%. Russian state pensions paid to Russian citizens are also taxable in principle but many pensioners fall below the effective threshold. The treaty suspension removes prior protections for US-sourced pension income.","tax_rate":0.13,"locally_taxed":true},"social_security":{"notes":"US Social Security benefits received by Russian tax residents would be treated as foreign pension income subject to Russian PIT. Prior to August 2023, the US-Russia treaty provided that Social Security was taxable only in the US. With treaty suspension, Russia can tax these amounts under domestic law. Practical enforcement on foreign-source income depends on the individual reporting it on their Russian tax return.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Roth IRA distributions are not recognized as a distinct tax-advantaged category under Russian law. Amounts received would be treated as foreign-source income and subject to PIT at progressive rates for Russian tax residents. Treaty relief is unavailable due to the 2023 suspension.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US-Russia income tax treaty (1992) was suspended by Russia in August 2023 via Presidential Decree No. 585. Treaty protections that previously shielded US pension and retirement distributions from double taxation are no longer operative. Russian tax residents receiving 401(k) or IRA distributions must include these amounts in Russian taxable income at the applicable progressive PIT rate (13-22% depending on total income). No treaty-based exemption or reduced rate is currently available to US persons.","tax_rate":0.13,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.13,"notes":"Capital gains for Russian tax residents are generally taxed at 13% (rising to 15% on amounts above 2.4 million RUB annually as of 2025 bracket reforms). Non-residents pay 30% on most gains from Russian-source assets.","details":{"tax_type":"Capital Gains Tax","country_name":"Russia","country_iso_code":"RUS","source_references":["Russian Tax Code Chapter 23","Federal Law No. 176-FZ (2024 progressive PIT reform)","PwC Russia historical summaries"],"last_verified_date":"2026-06-03","general_description":"Russia does not have a standalone capital gains tax. Gains are included in personal income and taxed under the progressive PIT schedule introduced January 2025. Residents benefit from exemptions on real property held more than 3-5 years and on securities held more than 3 years (the so-called long-term holding benefit). Non-residents are taxed at 30% on Russian-source gains with limited treaty relief available.","corporate_capital_gains":{"rate":0.25,"notes":"CIT rate increased from 20% to 25% effective 1 January 2025 per Federal Law No. 176-FZ.","tax_treatment":"Included in general corporate profits taxed at the standard 25% CIT rate effective 2025 (raised from 20%). Gains on qualifying long-term participations in Russian companies may qualify for a 0% rate under Article 284.2 of the Tax Code if held more than 5 years."},"individual_capital_gains":{"rate":0.13,"notes":"The five-year real property holding period applies to property not acquired by inheritance, gift from close relative, privatization, or annuity contract, for which the minimum period is 3 years.","top_rate":0.15,"tax_treatment":"Gains folded into total personal income and taxed at progressive rates. The 13% rate applies to the first 2.4 million RUB of combined income; 15% applies above that threshold. Long-term holding exemptions apply: securities held 3+ years exempt up to a formula-based cap; real property held 3-5 years (depending on acquisition method) fully exempt.","non_resident_rate":0.3}}}

{"notes":"Russian-resident individuals pay 13% on dividends up to 2.4 million RUB and 15% above that threshold as of 2025. Non-resident individuals pay a flat 15% withholding on dividends from Russian companies. Many tax treaties reduce the non-resident withholding rate, but the US-Russia tax treaty has been suspended by Russia since August 2023, so the statutory 15% applies to US persons.","rates":[{"rate":0.13,"type":"progressive","notes":"Resident individuals - first 2.4 million RUB of total income including dividends"},{"rate":0.15,"type":"progressive","notes":"Resident individuals - income above 2.4 million RUB; also the standard non-resident withholding rate on dividends"},{"rate":0.15,"type":"withholding","notes":"Non-resident individuals and foreign entities receiving dividends from Russian companies; treaty relief unavailable to US persons as of August 2023 treaty suspension"},{"rate":0,"type":"exempt","notes":"Russian holding companies receiving dividends from qualifying subsidiaries (50%+ stake held 365+ days) may qualify for 0% participation exemption under Article 284 of the Tax Code"}]}