April 3 2002, 17:26

Russian taxation presented farmer with a single tax

AgroFakty reported that as of Apr 1st, Russia Tax Code was amended with a new tax - single farmer's tax.

This tax shall replace normal taxes including profit tax, sales tax but such taxes as VAT, excise tax, state and customs duty along with environmental tax remain payable as before.

The innovation of this amendment is that single farm tax is calculated individually on pro hectare basis depending on the area.

First off, to enjoy this tax benefit one should prove that he is real farmer meaning that 70% of his sales should come from selling his agricultural produce.

This time tax benefit copied the western system in terms of brackets. The more you make, the more taxes you have to pay.