Pms (whatever on earth the real name is) was asking about some stuff on current cost of living in Russia. My friend Sasha actually writes a weekly column on this very subject. You might find this interesting.
Chris Doss The Russia Journal ---------------------------
This article was published in The Russia Journal ISSUE No.15 (158), DATE: 2002-04-26 ---------------------------------------------------------------------------- ---- Taxes, duties, membership fees
By ALEXANDER KONDORSKY / The Russia Journal During the Soviet era when everything produced in the country a priori belonged to the state, the purpose of taxes was basically limited to accounting and monitoring. Essentially, there were two taxes payable by individuals – the income tax (12 percent) and the so-called "tax on bachelors and childless families" (6 percent).
The latter was "eternalized" in the popular joke that went something like: "Soviet people are unique in being obliged to pay for something they don’t have." Of course, as there were no such things as private property and profit in the Soviet Union, there were no property and profit taxes either.
In addition to that, Soviet employees had to pay a lot of "vznosy" or membership fees, including the trade-union member’s fee, Komsomol, Communist Party and various voluntary-cum-compulsory societies, like DOSAAF (Society for Assistance to the Army, Aviation and Fleet), Yunost (Youth Sports Association), Society for Historical Memorial Protection, etc. On average, "vznosy" went up to three to five percent of a person’s income.
Of course, one could refuse to pay "vznosy," but this, in addition to a negative impact on one’s career, would deprive one of such perks as free passes to vacation resorts and other benefits enjoyed by loyal Soviet citizens.
Taxes were just automatically deducted from salaries, and wherever one worked, his or her employer was "Mr. State." Therefore, tax evasion was simply impossible.
Under the current Tax Code, Russian citizens (those who are staff employees) have to pay just one tax – the income tax – at the rate of 13 percent. Also, those who own property (dacha, apartment, land, etc.) have to pay property tax at the rate of 0.1 percent to two percent annually depending on the property’s value. On top of that, in certain circumstances, individuals in modern Russia may come across the succession tax, gift tax and a number of other taxes and duties.
According to official statistics, the average Russian family of three, who owns a 3-room apartment and has a monthly income of $200, has to pay $26 per month in income tax and around $5 per year in property tax. That totals $317 per year.
Russians are no longer persistently advised to be members of various "voluntary" societies, associations or political parties, nor are we charged for being single or having no children.
Tax evasion is still widespread in Russia, though the fiscal organs report dramatic improvements in the situation following the introduction of the 13 percent flat income tax.
Before it was introduced two years ago, there was a progressive-scale income tax that reached as high as 45 percent for those making more than $1,500 a month.
Basic taxes in Russia
Payable by individuals Income tax 13% Property tax 0.1-2% Succession tax 5-15% depending on the value of inherited assets Gift tax 3-40%
Payable by companies and organizations Employee pension-fubd deductions 28% Social tax 4% Mandatory medical insurance for employees 3.6% Road-user tax 1% Profit tax 24% VAT 20% Sales tax 5% Property tax 0.1-2% Advertisement tax 7%