[ruslan]

I hear about this 20% tax from people who never ever been to Russia. What the fuck ? Where did you get this data from ? What 20% FSB business tax are you talking about ? I'm Russian, I live here in Russia and doing business for three years, I pay 13% flat tax, nothing more. One can even choose to pay 6% off the gross income.

Taxation complexities may become effective when you start making more than $1.5MM in annual revenue or if you are doing some business with natural resources (oil, gas). Till then you are treated as small business. I believe this a regular business rule for almost every western country.

I don't deny existance of curruption in Russia. It really is and very huge. But as long as you are within the averages it does not reach you. I never paid any bribes, I don't want to get caught on doing this and lose everything.

[rjurney]

I got the data from people operating businesses on a large scale, that span Russia. It might have been 15%, actually. Its been six years. But I've spent eight months in Russian, learning my terrible Russian. I'm not just making this up.

Do you know anyone like that? This was Moscow, and this was payment to the FSB for 'protection.' Nobody much argued with this at the time, it seemed. It was better to be able to pay the FSB than to have to decide which Krysha to pay.

I'm surprised you find this strange or controversial. How much business have you done at a high level there?

That being said, it sounds like things have improved dramatically. Thats great, and shows how disconnected I am.

[ruslan]

Paying "protection" fees to Krysha (as you named it) was common in mid 90th when government was weak and criminals ruled Russia. Now criminals pay to gov if they don't want to follow Khadarkovsky/Ukos story (thank mr. Putin). I'm not in Moscow (yet do visit it regularily), but I still cannot imagine paying to FSB or to Militia or whatever if you are doing legal business. The thing is most multi-billion businesses started in Russia in 90th are still being ruled by criminals and one way or another are illegal or involved in money washing.

I have friends who are doing business for more than 10 years (mostly in telecommunication and software industry), no one pays for "protection".

The others most corrupted spheres in Russia, beside natural resources, are land estate and development business, mostly because there are huge money rolling around. Avoid this three and nobody will "care" about you or your business :)