THE RUSSIAN UNION OF INDUSTRIALISTS AND ENTREPRENEURS CALLED FOR FINALIZING THE DETAILS OF THE PROJECT ON THE EXCESS PROFIT TAX

Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs (RSPP), said that the current version of the bill on the excess profit tax of previous years should be finalized. At the same time, according to him, the union supports the current basic calculation parameters specified in the draft.

Recall, according to the bill, the excess profit tax will be levied from the excess of the arithmetic mean of profit for 2021-2022 over the arithmetic mean of profit in 2018-2019. Profit is determined according to tax accounting data. The rate is set at 10%. The tax itself must be paid by January 28, 2024.

As Alexander Shokhin explained to RBC, there are uncertainties in the current project that carry risks for business. According to the RSPP, the shortcomings of the bill are related to the following issues:

- The norms allowing to pay the tax in 2023 in the format of a security payment at an effective rate of 5 are vaguely formulated. There is a risk of paying tax at the rate of 10%.

- The refund or offset of at least one penny of the security payment paid in October–November 2023 will lead to an increase in the tax rate to 10%.

- There are no rules regulating the impact of the subsequent clarification of income tax obligations for the required years on the excess profit tax.

Photo by Freepik