Russia passed a law on excess profit tax for large companies

The State Duma in the third reading adopted a law on the tax on excess profits of large companies (the so-called windfall tax). About it reported in the lower house of parliament.

The amendments assume that 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 rate is set at 10%, the tax must be paid no later than January 28, 2024. At the same time, if the fee is paid from October 1 to November 30, 2023, the business will receive a “discount” and the rate will be halved to 5%.

“The excess profit tax will be credited exclusively to the federal budget and will be of a one-time nature,” the State Duma stressed.

At the same time, a number of companies will be exempted from paying tax. We are talking about companies producing oil, gas, coal, oil refineries, producers of liquefied natural gas with existing production and export. All participants in the registry will not pay tax SME and etc.

On July 13, at a government meeting, a number of amendments were approved to clarify the list of companies that will not pay tax, Vedomosti wrote. It was proposed that three more categories should not pay the tax: 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 that are subject to bankruptcy prevention measures, as well as companies that did not have sales proceeds in 2018-2019.

The government introduced the bill on 7 June. On June 28, the amendments were supported in the first reading, and on July 19 in the second.