Putin signed the law on a one-time tax on excess profits of big business

Russian President Vladimir Putin signed a law on a one-time tax of 10% on the excess profits of large businesses (the so-called windfall tax). Document published on the official portal of legal information.

The tax will be levied on the excess of the arithmetic average profit for 2021-2022. over the arithmetic mean of profit in 2018–2019. The tax must be paid no later than January 28, 2024.

The law does not apply to companies producing oil, gas, coal, oil refineries, producers of liquefied natural gas with active production and export. Small and medium-sized enterprises, as well as developers that implement projects involving citizens’ funds through escrow accounts (provided that they do not pay dividends in 2021-2022), credit and non-credit financial organizations, in respect of which measures are being taken to bankruptcy prevention, as well as companies that had no sales proceeds in 2018-2019.

The government introduced the bill on 7 June. On June 28, the amendments were supported by the deputies of the State Duma in the first reading, July 19 – in the second, July 21 – in the third. On July 28, the law was supported in the Federation Council.