It's worth starting the analysis with the fact that Russia and the US have completely different approaches to taxation. The tax system is an important instrument of the state's economic policy. Understanding the differences between Russia and the US will help you make a more informed choice of where and how to invest your money.
In the first case, a flat rate of 13% is applied to the income of individuals. That is, regardless of the amount of earnings, a person is obliged to pay this percentage. In the USA, a progressive rate is applied from 10% to 37% depending on the level of income. In addition, each state can set its own rates for income and property of an individual.
On average, a single California resident earns $61,026 a year. On this amount, he will pay 10.1% in federal tax, as well as 3.4% in state tax. His total net income is $52,753.
The interesting thing is that you can deduct % on mortgages, contributions to charity and % on real estate from your tax. But this only works for those who pay several thousand dollars in taxes. In addition, the amount of tax will vary depending on the family: the presence of children, the wife and her salary.
The average salary in Moscow is 1,200,000 rubles in year. Subtract 13%, leaving a net income of 1,044,000. In total, an American citizen must pay 13.5% of taxes from his salary, while in the Russian Federation only 13%.
But, in the case of small businesses, things will be quite different. Consider a New York City entrepreneur with an annual income of $142,737. A higher federal tax will already be taken from it — 17.50% plus state tax — 4.9%. He ends up with approximately $110,701 left.
Depending on the state, income tax will vary up or down. Therefore, many entrepreneurs specifically open their companies where taxes are lower. An important point: the company must be located in the same state where it was registered. Also, depending on the industry, additional income tax may apply.
For example, from Russia, let's take the simplified tax system for small businesses. For example, IP Timofeev AA earned 11,000,000 rubles (approximately $142,000) in a year. Under the simplified taxation system, he will pay 6%. And mandatory insurance premiums for 2023 in the form of a fixed amount of 45,842, regardless of the earnings of individual entrepreneurs. Plus 1% on annual income over 300,000 rubles.
As a result, minus this, the IP will have 10,184,158 rubles (about $127,240). As a result, it turns out that the tax on business in America will be higher than in Russia. But the interesting thing is that the amount in the US can be reduced by deducting the rental of housing and the services applied.
Now for the business itself. For example, let's take a large business in New York that earned $1,000,000 in a year. Since the federal tax varies depending on the company's income, this time it will be 32.82% of net income. Plus, the state tax is 6.61%. In total, after paying these taxes, the company will have $605,714 left.
Interestingly, the state business tax can vary greatly by location. For example, if you register your business in Florida, the state tax will be 0%. Plus, do not forget about the Sales tax, which may vary depending on the location. For example, in New York it will be 4%. Plus, local authorities take their % of a particular site (Local Sales Tax): in New York City, the sales tax is 4.5%.
Now we calculate the amount of tax on employees in an enterprise in the United States:
-6.2% social tax;
-1.45% medical;
-6% for unemployment (FUTA) on the first $7,000 earned. But employers who pay this tax on time receive a discount of up to 0.6%.
Total: from 13.7% to 8.25% over the salary of each employee. Of course, every large company has land. For example, in New York, property tax depends on the assessed value of the property, and rates can vary from year to year depending on the city's budgetary needs from 1% to 3%.
Now consider the same taxes, but on the territory of Russia. For convenience, let's take a large enterprise in Moscow, which earned the same $1,000,000 (76,820,000 rubles) in a year. Under the general taxation system, a 20% income tax is levied. The company is left with $800,000 in total. Also, do not forget about VAT at 20%, which companies most often add to the cost of their products. But for some items, such as basic food or children's clothing, VAT will be 10%.
Now let's analyze how much taxes a Russian company will pay for employees:
-22% to the pension fund ;
-5.1% health insurance;
-2.9% social insurance.
Total: 30% over the salary of each employee. If the company owns real estate or other tangible assets, then property tax will be charged at a rate of 2.2% of its cadastral value.
Plus, Russia provides for a sales tax for the sale of goods at certain points. The amount is calculated individually depending on the area and type of activity. The deflator coefficient for 2023 is 1.729. You can read more in article 415.
Total: in a US company located in New York, you will pay 39.43% of the net income of federal and state taxes, 8.5% of each sale, from 13.7% to 8.25% for each employee and from 1% to 3% for property.
In Russia, you will pay 20% income tax, 20% or 10% VAT, 30% on top of the salary per employee, 2.2% for real estate and sales tax if there is a point of sale. Of course, these calculations may depend on the type of enterprise, product or service, number of employees, and so on. So we are not in a hurry to declare that you will have 100% the same taxes.
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