DEALS WITH RUSSIAN COMPANIES
NH€apital
2Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 2
NH€apitalDmitry Suschov is a non-executive director of a UK listed company Eurasia Mining Plc., a
JV partner of a
global mining company Anglo Platinum (part of Anglo American). He is also a director of the following Russian and Ukrainian companies: Dalpolymetal, Daltekhgas, Kiev Oxygen Works, and Pivdentekhgas
as
well as investment companies: NH Capital, Deloan
Investments and NH Kazakhstan. Dmitry
is an investment banker with experience as a managing director with IG Capital (former Lukoil-Reserve-Invest with over $7bln. under management), and held senior positions with MDM Bank, PricewaterhouseCoopers and Ernst & Young where he was Metals, Automotive and Industrial Products Leader for Russia and CIS
Investment companies Gas companies Mining companies
OJSC Dalpolymetal
–
RussiaCJSC Oxygen
worksUkraine
OJSC YugtekhgasUkraine
OJSC DaltekhgasRussia
RussiaEurasia Mining Plc, United Kingdom
Deloan
Ivestments, United Kingdom
NH CapitalRussia
NH Kazakhstan,Kazakhstan
Introduction
3Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 3
NH€apital
EurasiaMining
Barrick Gold
Con. Puma(Kinross Gold)
Joint Venture with Anglo Platinum (part of Anglo American) is doing field works on a territory of 475 square kilometers on 3 deposits: Western Imandra, Volchetundra and MonchetundraInvestments to date are in excess of $10 mln.Other companies exploring neighboring deposits:
Barrick Gold – the largest gold company in the world with the market capitalisation of $37,5bln.Kinross Gold (another large gold producer with the market capitalisation of $14bln.Renova – one of major Russian investors, a shareholder in TNK-BP and Rusal
Similar deposits are being mined across the border in Finland
Example: our investments in Eurasia Mining Plc.
Russia
4Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 4
NH€apital
Eurasia Mining Plc.UK listed mining company
Value not disclosedFinancing the company
(via Delaon
Investments)2008-2009
CryogenmashRussia’s only ASU maker
250 000 000 USDSell to strategic investor
(Gazprombank)2008-2009
StromLWood processing
Value not disclosedAcquisition advisory to
Swedish company2008-2009
Volzhsky Abrasive WorksSiC manufacture38 500 000 USD
Sell to strategic investor(Carborundum
Universal)End of 2008
Recent deals
DalpolymetalMajor lead producerValue not disclosedAcquisition advisory to
Russian Mining CompanyEnd of 2008
Office complex inMoscow
17 500 000Sell to strategic investor
(Khimmash
Group)2008
5Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 5
NH€apital
NHCapital makes direct investments and advises on deals (on success fee basis). NHCapital
has a JV with Anglo Platinum (part of Anglo American) via Eurasia Mining Plc and a JV with Swedish company Nordic Industries on construction materials. The investment banking division of NHCapital
is advising major
Russian companies including Gazprombank
Group, PromSvyazCapital Group (includes financial services, IT, real estate, media and other assets), Unicor Group (includes
financial services, agriculture, bakery,
pharmacy and other assets), Nafta Moskva (a shareholder of major
international banks) as well as foreign companies including Rurik
Industries (Sweden) and Galileo Vacuum Systems (Italy)
NHCapital clients
6Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 6
NH€apital
Russian investments abroad
Russian investments in Italy
Foreign investments in Russia
Doing business in Russia
Content
7Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 7
NH€apitalInternational expansion of Russian companies
5-9
10-19
20-29
> 30
USA - 33
Canada- 12
Kazakhstan - 19Ukraine-37Moldova-7
Austria-6Serbia-5
Greece-5
Hungary-8
Belgium -
5UK-27
Finland-10
France-6Italy-14
Ger-25
Switzerland -
6
Netherlands -
32
India-7
Uzbekistan-8
Turkey-8
Chech
Republic-8
Armenia-12
Belarus-13
Cyprus -
16
EUROPE - 152
Number of deals
Source: Thompson research
8Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 8
NH€apital
Manufac
turing
Transp, C
omm, E
lectric
, Gas..
.
Finance
, Insu
rance
, Real
Estate
Service
s Mini
ng
Retail Trad
e
Wholesa
le Trad
e Cons
tructi
on
Agricu
lture,
Forestry
, Fish
ing
2006
2007
2008
0
5
10
15
20
25
30
35
40
45
International expansion statistics
Russian companies have increased their international presence over the last 3 years
Number of deals has been growing by 35% p.a.from 64 in 2006 to 117 in 2008
Manufacturing industry was the most popularamong Russian investors
Number of deals in Manufacturing industry segments in 2008
Steel and other metal
products; 18
Pharma; 2
Constuction and other
materials; 3Consumer goods; 4
Foods; 4
Machinery and
equipment; 14
Source: Thompson research
Number of deals by sectors in 2006 - 2008
9Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 9
NH€apitalTop 25 Russian multinationals by foreign assets
# Name IndustryForeign
Assets, $ m
1 Lukoil Oil/gas 18
921
2 Gazprom Oil/gas 10
572
3 Severstal Metals/mining 4
546
4 Rusal Metals/mining 4
150
5 Sovcomflot Transport 2
530
6 Norilsk
Nickel Metals/mining 2
427
7 AFK Sistema Telecoms/retail 2
290
8 VimpelCom Telecoms/retail 2
103
9 Novoship Transport 1
797
10 TNK-BP Oil/gas 1
601
11 Evraz Metals/mining 1
322
12 FESCO Transport 1
074
13 PriSCo Transport 1
055
# Name IndustryForeign
Assets, $ m
14 Novolipetsk
Steel Metals/mining 964
15 RAO UES Electricity 514
16 TMK Metals/mining 490
17 Eurochem Agri-chemical 456
18 GAZ Manufacturing 366
19 OMZ Manufacturing 354
20 Alrosa Metals/mining 294
21 ChTPZ Metals/mining 244
22 Alliance
Oil Oil/gas 211
23 Acron Agri-chemical 200
24 Euroset Telecoms/retail 147
25 Mechel Metals/mining 116
Total 58,744
Russia's Top 25 multinational investors (ranked by foreign assets) have US$59bln
of assets abroad, have nearly US$200bln
in foreign sales (including exports) and employ 130,000 people outside Russia
10Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 10
NH€apital
Russian investments abroad
Russian investments in Italy
Foreign investments in Russia
Doing business in Russia
Content
11Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 11
NH€apitalRussian-Italian international trade
Italy is one of the major trade and economic partners of Russia. Russian trade volumes with Italy are the 4-th largest after Germany, the Netherlands and China
International trade between countries grew in 2008 by 46,7% and amounted to $52.9 bln. Russian exports grew by 52.3% to $41.9 bln, while imports - by 28.8% to $11 bln
Russian-Italian international trade, $bln.
10,915,2
23,5
30,836
52,9
8,512
19
25,127,5
41,9
2,4 3,2 4,5 5,78,5
11
0
10
20
30
40
50
60
2003 2004 2005 2006 2007 2008
Sales Export ImportTradeSource: Russian State Statistics Service
12Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 12
NH€apitalRussia welcomes cooperation with Italian companies
Russian Prime Minister Vladimir Putin appreciates high volumes of Russian-Italian trade
Putin has recently met 15 major Italian businessmen in his countryside residence near Moscow
Among topics of discussion were:
Italian support of South Stream pipeline designed to pump 30 bln m3 of Central Asian gas to Europe
Joint development of a hi-tech project to build the Superjet-100 medium-haul passenger airliner
Putin also announced that the two countries would hold a number of mutual negotiations in the nearest future
"We are open to comprehensive partnership with Italian businesses" Putin said, adding that no developments within Russia or Italy would be able to hamper their bilateral business partnership, which he said was set to "expand and strengthen"
V. Putin
looking at the Italian flag during Russian-Italian summit in 2008
13Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 13
NH€apitalGood relations on the top level
Vladimir Putin has made several working visits to Italy
Putin was in Sardinia for a meeting with SilvioBerlusconi, who had won a third term as prime minister in Italy's parliamentary election
The two leaders discussed the current state and future of Russian-Italian cooperation
The meeting was one of Berlusconi's first with a foreign leader since the elections
Berlusconi highlighted Italy’s economic ties with Russia, saying it is now Russia's fourth-largest economic partner with 2nd place in terms of imports from Russia, and 7th for exports to Russia
“Italy will propose discussions with the rest of the European Union on introducing visa-free travel between Russia and the 27-nation bloc”, Silvio Berlusconi said after the meeting
14Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 14
NH€apitalRussian investments in Italian companies
Year Target name Acquiror
name Deal size, EURm Deal comments
2008 Refining facility Lukoil 1
347 has acquired 49% stake in the refining plant
2008Imal
Srl's
fibreboard factory
Proektirovanie
i Stroitelstvo
-
XXI 14,6 Russian construction company has acquired the fibreboard manufacturing factory
2007 Jobs SpA Borodino GK ZAO n/a
Russian alcoholic beverages manufacturer has acquired a stake in Piacenza-based high-speed packaging machinery manufacturer
2007 SBC Bottling & Canning SpA
Borodino GK ZAO 17
Russian alcoholic beverages manufacturer has acquired Montecchio
Emilia-based bottling and packaging machinery manufacturer
2007 Prince Hotel Inturist
VAO OAO 10 Russian tour operator has acquired Forte Dei Marmi-based 4-
star hotel
2007 Energetic Source
The Renova
Group 400 Russian conglomerate has acquired Italian gas and energy
trading groupSource: Companies information, Mergermarket
Over the last 3 years Russian companies invested more than 2,7 bln EUR in acquisitions in Italy
Variety of industries and deal sizes (see the table below) show overall high interest from Russian investors in Italian companies
15Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 15
NH€apitalRussian investments in Italian companies
Year Target name Acquiror
name Deal size, EURm Deal comments
2007 Azzurro
Italia Inturist
VAO OAO n/a Russian tour operator has acquired Italian hotel operator
2006 Tombacco
SpA Retal
ZAO n/a PET-preforms
manufacturer has acquired the plastic products maker
2006 Eurallumina
SpA RusAl
ZAO 400 Russian major aluminium producer has agreed to acquire 56.16% stake in Italy based aluminium refinery
2006Undisclosed chemical facility
Acron
OAO n/a Russian nitrogenous fertilisers producer has signed an agreement for the acquisition of Italian chemical facility
2006 Finmek
SpA AFK Sistema
Group 100 Listed Russian conglomerate has agreed to acquire a 51% stake
in Italy based manufacturer of telecommunication terminals
2005 Lucchini
SpA Severstal
OAO 430 Steel manufacturer acquired 62% in the steel products manufacturer
2005 Palini
e Bertoli
SpA EvrazHolding 61 Russian steel manufacturer has acquired a 75% stake in Italian
manufacturer of rolled steel plates
Source: Companies information, Mergermarket
16Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 16
NH€apital
Russian investments abroad
Russian investments in Italy
Foreign investments in Russia
Doing business in Russia
Content
17Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 17
NH€apitalForeign investments in Russian companies
British Virgin Islands - 5
Cayman Islands - 5
Switzerland -
18
Austria-14
Cyprus -
75
Netherlands -
32
Belgium -
6Luxembourg-9 Hungary-8
Chech
Republic-7
Canada- 20
USA - 74Japan - 8
South Korea - 6
EUROPE - 414
Australia - 6
Kazakhstan - 8
Sweden-39Finland-37Norway-17
UK-92
Spain-8
France-28
Poland-11
Ukraine-12
Italy-14
Germany-61
5-9
10-19
20-29
30-60
> 60
Number of deals
Source: Thompson research
18Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 18
NH€apital
Manufa
cturin
g
Finan
ce, In
suran
ce, R
eal E
state
Mining
Trans
p, Com
m, Elec
tric, G
as, S
an...
Service
s Reta
il Trad
e
Wholes
ale Trad
e Con
struc
tion
Agricu
lture,
Fores
try, F
ishing
2006
2007
2008
0
10
20
30
40
50
60
70
Foreign investments statistics
Foreign companies have also increased their presence in Russia over the last 3 years
Number of deals is growing by 34% p.a. from 127 in 2006 to 229 in 2008
Investor preferences were changing from infrastructure in 2006 to manufacturing in 2007and financial sector in 2008
Foods; 15
Consumer goods; 6
Steel and other metal products; 5
Constuction and other
materials; 3 Pharma; 2Machinery
and equipment;
16
Number of deals in Manufacturing industry segments in 2008
Source: Thompson research
Number of deals by sectors in 2006 - 2008
19Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 19
NH€apital
Italian investments in Russian companies have been also developing very fast in recent years according to Russian State Statistics Service
Major Italian investors in Russia are the following companies: FIAT (automotive), Indesit (domestic appliances), Teknimont (chemicals), Marazzi (construction ceramics), Ferrero (confectionery), Federleno Arredo (furniture industry)
Italian investments in Russia, $mln.
145,8249,5 254,6 243,4
486,3
1120
0
200
400
600
800
1000
1200
2003 2004 2005 2006 2007 2008(6mon.)
Italian investments in Russia
Source: Russian State Statistics Service
20Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 20
NH€apitalRussia is an attractive investment destination
Russia is increasingly considered a country with a stable investment climate. It has witnessed a big increase in foreign direct investment (FDI) inflows over the recent yearsKey drivers of FDI growth: a large and growing domestic market, strong human capital, richnatural resources and political stability “Russia needs many things and there is money to make that a reality” - a notion from respondents of recent CEO survey conducted by Foreign investment advisory council
Russia has taken considerable steps to improve general business climate:
The Law on Foreign Investment was improved and clarifiedPositive changes has been made in the Law on Subsoil, Water Code, Forestry Code, Civil Code, Law on CompetitionAmendments to the Tax Code improved tax controls
Most promising markets (A survey of CEOs, 2008)
Source: Foreign investment advisory council
21Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 21
NH€apitalM&A Activity by Sector
Financial sector in Russia is “hot” in terms of M&A activity in comparison to other CIS countries
22Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 22
NH€apital
Russian investments abroad
Russian investments in Italy
Foreign investments in Russia
Doing business in Russia
Content
23Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 23
NH€apital
Babushka
Kolkhoz
Winter (Zima)
Russia as it is presumed…
24Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 24
NH€apital
Domodedovo Airport
GUM
The colors of the night
Russia as it is…
25Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 25
NH€apital
Total Area: 17,075,200 sq. km
Population: 143.5 million
Climate varies from temperate continental to strongly continental
Average summer and winter temperatures
Region Summer Winter
Central Part +19°C (66 F) -11°C (12 F)
South +24°C (75F) -5°C (23 F)
Urals +18°C (64 F) -16°C (3 F)
Siberia +25°C (77 F) -40°C (-40 F)
Russian Federation
26Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 26
NH€apitalMoscow alone is huge…
… but it is just a small part of Russia
Moscow
27Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 27
NH€apitalMap of Per Capita Income in Russia
Central federal district, thousand Roubles
Belgorod region
7,4Bryansk region
7,1Vladimir region
5,9Voronezh region
8,5Ivanovo region
4,8Kaluga region
8,6Kostroma region
6,6Kursk region
7,9Lipetsk region
8,1Moscow
region
12,9Oryol region
6,8Ryazan region
6,3Smolensk region
7,4Tambov region
7,3Tver region
7,8Tula region
8,0Yaroslavl region
9,8city of Moscow
33,7
Source: Rosstat
28Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 28
NH€apital
Over the next 50 years, Brazil, Russia, India and China -
the BRICs
economies -
could become a much larger force in the world economy
Source: Goldman Sachs -
Global Economics Paper
BRICs will take the lead
29Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 29
NH€apital
From the above statistic data we may draw the following conclusions:
Russia is the only country in Europe where the age group of 15 to 34 years is growing in size
Per capita income is considerably growing in Russia and still has an immense further growth potential
Statistic Data for Russia and the EU
Bulgaria Poland Czech Republic UK France Germany Russia
2000-1 2005-6 2000-1 2005-6 2000-1 2005-6 2000-1 2005-6 2000-1 2005-6 2000-1 2005-6 2000-1 2005-6
Population, million 7,8 7,3 38,7 38,5 10,3 10,2 59,5 60,6 59,4 60,9 82,2 82,4 146,3 142,8
Age groups, years
0-14 % 15,6 13,5 18,9 15,8 16,5 14,7 19,0 17,5 18,9 18,3 15,6 14,1 17,8 14,9
15-34 % 28,6 28,4 30,7 31,6 30,1 29,4 27,0 25,9 27,4 25,8 25,6 23,3 29,7 31,9
35-54 % 27,3 27,0 29,5 28,5 29,1 28,4 28,2 28,9 28,5 28,0 29,2 31,6 30,6 30,2
55+ % 28,6 31,1 20,9 24,1 24,3 27,5 25,8 27,7 25,3 28,0 29,6 31,0 21,9 23,0
Average family size 3,4 3,2 3,0 2,8 2,8 2,5 2,7
Per capita income, $/person 505,1 682,5 991,7 2 097,2 2 177,7 2 192,0 109,4 368,4
City population, % 70,6 66,7 77,8 91,5 79,2 90,1 72,9
Source: Rosstat, Euromonitor
30Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 30
NH€apital
Source: Economic Ministry
Sources of growth 2005-2010 2011-2015
Restructuring of Oil and Gas 0.5 0.9
Transport strategy 0.3 0.4
Restructuring agriculture 0.2 0.2
Innovation strategy 0.15 0.3
Information technologies 0.2 0.4
Defense sector (including aviation) 0.2 0.3
Mortgage/construction 0.1 0.1
Total 1.65 2.6
Base growth 4.55 4.25
Total annual growth 6.20 6.85
Potential sources of additional GDP growth (percentage points annual)
Sources of Russian economy future growth
31Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 31
NH€apital
1998*
Currency regulations
Individual taxes
1998**
Corporate taxes & duties
Law enforcement, taxation
2003
Very good*Before August 1998 crisis
Very bad ** After August 1998 crisisAverageGood Bad
Legal framework
Law enforcement, general
2009
Legislative Framework and the Rule of Law
32Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 32
NH€apital
1998* 1998** 2003
Very good*Before August 1998 crisis
Very bad ** After August 1998 crisisAverageGood Bad
Bureaucracy
Corruption
Financial sector
International standards
Personnel
2009
Corporate governance
Trends in Other Critical Areas
33Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 33
NH€apital
Main points of interest - cheap labour and raw materials costs along with huge market volume
Mining is not the 1st priority now, while processing industries taking the lead
Labour Costs
Labour Costs (US$/hour)
0 5 10 15 20 25 30 35
ChinaRussiaTurkeyPoland
South KoreaSpain
UKUS
AustraliaFrance
SwitzerlandBelgium
Germany
Source: Economist Intelligence Unit
34Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 34
NH€apital
Source: “The Russia: Investment Destination”
-
a survey conducted for the Foreign Investment Advisory Council (FIAC) and the Economy Ministry of Russia
Respondents: 158* international companies, primarily headquartered in Europe and the United States
The size of the domestic market
Sustained growth rates of the domestic economy
Macroeconomic stability
Domestic technological and scientific potential
Cheap energy and raw materials
Administrative reforms to reduce bureaucracy and corruption
Favorable tax regime
High quality and low cost of human resources
Overall political stability
What are the top five advantages of Russia?
Reasons for entrance to Russian market
77%
55%
46%
40%
31%
30%
22%
17%
88%
35Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 35
NH€apital
“The tax and legal systems [in Russia] offer acceptable risks for us”
Sir John Brown, Chairman of BP, prior to placing $7billion into Russia.
“BRIC (Brasil, Russia, India and China) countries have the greatest prospects for long-term economic growth among big emerging-market countries”
Jim O’Neill, Director of the Economic Research Group in Goldman Sachs
Some opinions
36Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 36
NH€apital
Is your company thinking of investing in Russia?
Is your company planning on expanding or reducing its investments in the Russian market in the next 3 years?
Existing investors plan to expand, new multinationals line up for entry
105 existing investors 48 non-investors
Source: FIAC
Multinationals’ expansion to continue
Expand71%
Same level26%
Reduce3% Yes, within
the next year46%
Yes, in 1-3 years19%
Yes, but not earlier than in 3 years
8%
No27%
37Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 37
NH€apital
Corporate profits tax rate 20%
Capital gains tax rate 1 20%
Branch remittance tax 0
Withholding tax on dividends 2 5 -
15%
Withholding tax for foreign legal entities without permanent establishment in Russia:
Interest on certain types of state and municipal securities 15%
Other interest 20%
Freight 10%
Royalties from patents, know-how 20%
Payments of other Russian source income to foreign companies 20%
Notes: 1. Capital gains are taxed at the corporate profits tax rate 2. 15% rate of withholding tax on dividends applies if either the payer or recipient of the dividends is a foreign legal entity
The basic corporate profits tax rate consists of 2,5% payable to the federal budget, 17,5% payable to the regional and local budget = 20%
The regional element can be reduced by up to 4%, giving a minimum overall rate of 16%
Corporate Taxes at a Glance
38Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 38
NH€apital
Unified Social TaxThree elements of payroll tax: federal budget, social insurance, medical insuranceTax is paid entirely by the employerRegressive tax rates from 26% to 2% on the pay of each employee based on the cumulative annual income
Minerals Extraction TaxFixed-duty rates for oil and gas condensate based on physical volume. A subject to variation in line with changes in world pricesOther minerals are subject to tax based on the value of extracted commercial minerals
Assets TaxTax is levied on property belonging to Russian legal entities and rep. offices of FLEsThe maximum tax rate is 2.2%.Several items were excluded from tax base(work in progress, inventory, deferred expenses)
Value Added Tax (VAT)General rate of 18% on the majority of sales of goods and servicesExported goods are subject to VAT at a zero rateVAT due to the budget = VAT collected from customers for goods sold - VAT paid to suppliers (Input VAT)
Other important taxes
39Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 39
NH€apital
Resident -
is a person that spends 183 days or more in Russia in a calendar year
Taxable income: basically everything -
salary, COLA, hardship, housing, home leave, other allowances and benefits in kind such as use of a company car for
private purposes
Russian source income: income received for work or services performed in Russiacapital gains from the sale of property in Russiarental income in respect of property in Russiainterest from deposits in Russia or dividends on shares held in companies in Russia
Personal Income tax rates13% - for most worldwide income received by tax residents30% - for Russian source income received by non-residents9% - for dividend income
Personal Taxation: taxable income and tax rates
40Поиск инвестора в телекоммуникационной отраслиDEALS WITH RUSSIAN COMPANIES 40
NH€apitalContacts
Dmitry Suschov Managing [email protected].: +7 (495) 979 87 33
Giovanni [email protected]
Ilya [email protected].: +7 (903) 559 18 05
NH€apital