Even Russia now has a flat rate tax of 13%!
Only on their individual income tax. The rest of their system is a European style income tax with VAT on steroids, along with a 32% Social Security tax plus 30-35% profits tax on individuals.
Somehow I think something is getting lost in most of the media's rendering of what is going on in the Russian tax system:
PART TWO OF THE RUSSIAN FEDERATION TAX CODE
by Alexander Chmelev and Evgeny Astakhov
While the article above describes the tax system as it existed in 2000, no substantive change has taken place since that time.
Putin has proposed additional changes recently but the Duma has yet to act on it, and it would only effect how small businesses (less than 20 employees) would be taxed.
"Putin's proposal would cut the multiple taxes small businesses pay to just two: a tax of 20 percent on pure profits or 8 percent on turnover, and a pension tax, which would be reduced from 28 percent of salaries to 14 percent.
Certain service companies such as car repair shops, veterinary offices and cafeterias would be required to pay only a single, 15 percent income tax. "
***
"Businesses operating in Russia have long complained of the heavy tax burden. They are required to pay 35 percent taxes on salaries, which cover contributions for medical and social insurance, five percent sales tax, about 17 percent in value-added taxes, and one percent in road taxes. Then they are supposed to pay 35 percent on net profits left after other taxes are paid, plus various fees for meeting regulatory requirements.
Small businesses account for 10-11 percent of Russia's gross domestic product and employ 12 million people, according to the Russian State Council working group on small business. Putin and other top officials say they are committed to increasing those numbers and helping to create a middle class that could fuel economic growth."