Business asks the Ministry of Finance to reconsider the approach to calculating the tax base for excess profit tax

Delovaya Rossiya asked the Ministry of Finance to work out in more detail the methodology for determining the tax base for calculating the imposed excess profit tax – the so-called windfall tax – and to take into account the investments made by companies in the 2018-2019 base period. This was reported to Vedomosti by two sources familiar with the text of the letter sent by the organization to Deputy Finance Minister Alexei Sazanov on May 10.

In the current wording of the draft law “On the tax on excess profits of previous years”, not only organizations that received additional profit due to favorable pricing conditions are subject to taxation, interlocutors familiar with the letter note. “Business Russia” drew attention to the fact that organizations that in 2018-2019. spending more intensively than in the period of 2021-2022, including on the modernization of enterprises, the profit of the base period will be lower, and hence the amount will be higher. Companies that made capital investments in earlier periods, taking into account the length of the investment cycle, will increase their profit for 2021–2022. due to the increase in production parameters. In both cases, organizations will be forced to pay an additional tax on normal rather than excess profits, the sources convey the contents of the letter.