International

The World Cup 2018 and some tax factoids about Russia

picture of luzhniki football stadium in moscow - home to the russian national football team

This quadrennium’s host country

In a couple of days the 2018 World Cup will kick off in Moscow where Russia will play Saudi Arabia in the first match at the Luzhniki stadium, the home of the Russian national football team.

The story of the stadium is a jaunt through modern Russian history. Since its inception in 1954 its creator then, the soviet USSR has transitioned into a democracy; seeing the election of Boris Yeltsin in 1991 with presidential elections ever since.

The total transformation of Russia’s tax system

Russia’s wholesale move over from communism to a capitalistic open market economy has provided the opportunity to witness a tax system change of considerable proportions.

Prior to 31st July 1998 the tax system was made up from laws from various recent income tax and corporate tax laws enacted by the Soviet Union. The new government completely re-wrote the tax code and implemented it in two parts.

  • From February 1996 – the new day-to-day framework of how the government will interact with taxpayers.
  • From August 2000 – introduced the new flat rate type of tax which stands, at the same rate, to this day.

An important note in the code removes all doubt about what taxes people should and should not pay:

“Taxes or levies not listed explicitly by the Code or enacted in violation of its specific provisions are deemed illegal and void.”

Which seems to be a clear step forward to modern day government transparency as no tax could be demanded without reference to the provision in the code.

Quick read infographic

I’ve dropped in an infographic with the sources annotated for a very very quick read below.

Picture of an infographic about the Iberian derby

 

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Paul

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