Russia’s primary tax law is the Russian Tax Code (Russian: Налоговый кодекс Российской Федерации). The Code (as it’s generally referred to) was created, adopted and implemented in three stages.
Part I: Also known as the General Part, it was enacted July 31, 1998. It regulates the relationships among taxpayers, tax agents, tax-collecting authorities and legislators, tax audit procedures, resolution of disputes, and enforcement of law.
Part II: It was enacted on August 5, 2001. It defines specific taxes, rates, payment schedules, and detailed procedures for tax calculations. It was significantly amended to incorporate the new corporate profits tax section and the new simplified tax system for small business. It is subject to regular changes effected through federal laws.
The Russian Tax 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. Unlike regular taxes set by the tax code, rates for oil-related taxes and tariffs are set by government decree.