Doing Business in Russia Research Proposal Example | Topics and Well Written Essays - 3000 words

Doing Business in Russia - Research Proposal ExampleSoviet-era management practices, a decaying infrastructure, and inefficient supply systems hinder efficient drill of those resources. For nearly sixty years, the Russian economy and that of the rest of the Soviet Union operated on the basis of aboriginal planning meaning state control everywhere virtually all means of production and over investment, production, and consumption decisions throughout the economy. Economic policy was made according to directives from the Communist Party, which controlled all aspects of economic activity. The interchange planning system left a number of legacies with which the Russian economy must deal in its transition to a market economy. The constant changes in the patronage environment can make business activities hard to plan for managers.Taxes in Russia are high but some reforms are implemented in order to reduce the amount of valuatees paid by companies. During recent years, the government h as put emphasis on reducing regulation and lowering taxes. Depending on the companys location, the tax can vary. The thorough tax code has recently been implemented including a cutting VAT law and a new mesh tax law. The VAT is quite similar to the EU model however, input VAT is only recoverable when paid whereas output VAT can be accrued on a cash or accrual basis. The government actions regarding the VAT are mixed. On one hand, the Russian government decided not to apply VAT on certain actions (i.e. inter-company loans or derivatives transactions), but on the separate hand, some other fields that were not concerned by VAT are now subject to it (i.e. transfer of patents, trademarks, copyrights). The new Profits tax law is lowering the tax rate to a maximum of 24 % and decreased the number of non-deductible expenses.