Disadvantages Of Doing Business In Russia Essay

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DISADVANTAGES OF DOING BUSINESS IN RUSSIA The paper wants to analyse the Disadvantages of doing business in Russia. The analysis starts with an introduction, which provides a general economic overview about the macroeconomic situation in Russia. The research focuses the attention on the five institutional complementarities according to Hall and Soskice in Russia. The last part wants to sum up the main disadvantages that a Business can face when operating in Russia. Russia is the biggest country in the world with a land extension 17,098,242 sq km with 11 different time zones and huge natural contrast among the different regions. According to the World Bank database in 2014 there were 143,499,861 people in the Russian Federation with positive…show more content…
To have an analytical opinion about how it is difficult or not to do business, the World Bank provides each year a report called “Doing Business” where for each country is presented an analysis related to do business in a specific country. According to the World Bank, the Russian Federation ranks 92 out of 189 countries, with an increase from the previous position in 2013 (111 out of 189). Starting up a business should consider a lot of variables in particularly the taxes. According to the Russian Federal Tax Agency the Coporate tax (calculated on the net income generated in one business year) in Russia is equal to 20%, while just to give a comparison in Italy is 31.4%, and Austria is 25%. The World Bank provides also the total tax rate (% of commercial profits) and it measures the amount of taxes and mandatory contributions payable by businesses after accounting for allowable deductions and exemptions as a share of commercial profits. Taxes withheld (such as personal income tax) or collected and remitted to tax authorities (such as value added taxes, sales taxes or goods and service taxes) are excluded and for Russia is 50.7%, for Italy is 65.8% and for Austria is

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