Putin signed the law on the peculiarities of taxation in new regions

Russian President Vladimir Putin signed lawallowing the government in 2023 to issue regulatory legal acts providing for the specifics of taxation in the Kherson, Zaporozhye regions, the DPR and the LPR.

We are talking about the procedure for registering organizations and individuals with tax authorities, the procedure for the transition of taxpayers engaged in entrepreneurial activities in new territories to special tax regimes.

The government will determine a special procedure for recognizing residents of the Kherson, Zaporozhye regions, the DPR and LPR as tax residents of the Russian Federation, establish the conditions for the start of application and the procedure for introducing regional and local taxes in new territories.

The law also obliges organizations and individual entrepreneurs in these regions to start using cash registers in settlements.

According to the document, new regions will be able to reduce tax rates to 0% for all or certain categories of taxpayers under a simplified or patent taxation system by their laws in 2023-2024. The right to set reduced rates under the simplified and patent system, which the DPR and LPR now have, extends to the Zaporozhye and Kherson regions.

On November 21, Vladimir Putin signed law, allowing residents of new regions to issue Russian documents duty-free, including a passport and driver’s license. The law also defines the specifics of the calculation and payment of excises, the calculation of VAT, tax accounting for corporate income tax, and the payment of state duties.

Daria Erozbek