the 'up to 55%' corporate tax rate in russia mentioned above...

the 'up to 55%' corporate tax rate in russia mentioned above (4th sept at 17:19 by OscarA) can be mitigated by (pre-tax) royalties paid by sibex/solagran russia to solagran australia for IP licencing. a forensic accountant/tax office auditor could be shown international
benchmarks for this (eg i would expect merck sharpe and dohme australia pays substantial pre-tax fees for licences to its overseas parent for the rights to make its drugs here).

since the majority of the process for making a drug is in the intellectual property, in R&D to be paid off, the majority of the sale price can surely be remitted to the country of residence where the IP is held.

australia has a tax treaty with russia, signed in 2000 and came into force in 2004.
http://www.ato.gov.au/large/content.asp?doc=/content/55844.htm


i'm not an accountant, but the above post from ATO mentions that royalties would attract 10% taxation (i guess this means 10% of the amount paid from russia to australia)

there is an allowance to cut double-taxation and imputation of dividends remitted from russia to australia, which will help solagran australia cuts its australian company tax bill.

the above is in the absence of tax exemptions for pharma companies (that i read on another SLA posting on HC recently), apparently russia is mad keen to stimulate this industry locally.

i guess the figure of 55% was thrown out there at the shareholder info evening to show that taxation is a decent issue for a small company crossing borders, particularly into a country with less history of taxing private enterprises. I believe alot of ex-communist countries have very high income tax rates because the majority of people/companies who should be paying tax dodge it (this is improving, so as tax base improves the rates will drop)