Business taxes in 10 jurisdictions, explained simply

The calculator above compares the tax burden in ten countries most often considered by Russian-speaking entrepreneurs. Here is each one in plain language.

Russia: USN 6% or 15%

Two flavors of the simplified regime. "Income" (6%): pay on every ruble earned, best at high margin; employee contributions reduce the tax by up to half. "Income minus expenses" (15%): pay only on profit, but a 1% minimum of revenue applies even in a loss year. Rules: Federal Tax Service of Russia.

China: 5% instead of 25%

The standard corporate income tax is 25%. Small low-profit enterprises (profit up to 3M CNY, up to 300 employees, assets up to 50M CNY) pay an effective 5% - one of the lowest rates in the world for real business. VAT ("fapiao") for small companies: 1-3% simplified. Source: State Taxation Administration of China.

Hong Kong: 8.25% and territoriality

Only Hong Kong-sourced profit is taxed; foreign profit is exempt via offshore claims. Rate: 8.25% on the first 2M HKD, 16.5% above. No VAT, no dividend or capital gains tax. Rates: Inland Revenue Department.

Kazakhstan: 20%, small business from 3%

Standard CIT is 20% on profit. Small businesses can choose a special regime (SNR): about 3% of revenue, no expense accounting - similar to Russian USN. Fits founders based in Central Asia working both markets. Rules: Committee of State Revenues of Kazakhstan.

UAE: 0% at the start, 9% later

Since 2023: profit up to 375K AED (~3.4M RUB) is tax-free, above that - 9%. Qualifying free zone companies pay 0% on all profit. Key requirement: real presence and a bank account, otherwise incentives are unavailable. Details: UAE Federal Tax Authority.

USA: 21% plus states

Federal rate 21%; states add 0-9%. An LLC often suits small businesses: the company itself pays no tax - the owner pays at personal rates (progressive scale). Key benefit: access to US banks and payment systems. Overview: IRS.

Singapore: 17% with startup exemptions

The base rate is 17%, but partial exemptions on the first 200K SGD bring the effective rate to about 9%. Territorial principle like Hong Kong, with one of Asia's best reputations. Downsides: expensive company maintenance and substance requirements. Rates: IRAS.

Seychelles: the classic zero offshore

Non-resident companies (IBC) pay no profit tax; no audit or reporting. Suitable for holdings and international structures without local operations. Note: banks treat Seychelles companies cautiously - without a proper structure, opening an account is hard. Regulator: Seychelles Revenue Commission.

Cyprus: 12.5% with EU reputation

One of the EU's lowest rates - 12.5% on profit, 0% withholding on dividends to non-residents, eurozone member. Active trading requires real substance: office, staff, directors. A classic for holdings and IP ownership. Rates: Cyprus Ministry of Finance.

What to choose for a typical task

  • Marketplaces and 1688 sourcing - mainland China (5%).
  • International trade and holding - Hong Kong or Cyprus.
  • Russia-only operations - Russian USN.
  • Founder based in Central Asia - Kazakhstan.
  • Asian hub with reputation - Singapore.
  • Zero rate without local operations - Seychelles.

The calculator shows the basic picture. The real burden depends on currency control, fapiao, tax treaties and ownership structure - contact us to have your model calculated at a consultation.