The Federal Tax Service signed an agreement on the exchange of tax information with the DNR and LNR

Russia will exchange tax information with the DNR and LNR. The agreement was signed during the visit of a FTS delegation led by Deputy Head of the Service Konstantin Chekmyshev to Donetsk and Luhansk. There, the delegation met with DNR Prime Minister Vitaly Khotsenko and LNR Prime Minister Sergei Kozlov. In addition, the participants discussed issues of interaction between the tax authorities of Russia and the tax authorities of the DPR and LPR, as well as further steps in the integration of tax systems.

Mr. Chekmyshev noted that gaps in the regulation of business operations in the interaction between Russia, the Donetsk and Luhansk People’s Republics are now being eliminated. “The main goal is to create an understandable and transparent system for the work of entrepreneurs. The most relevant for this is the open exchange of tax data. The integration of tax systems and business registration and accounting systems is very important on the way to the formation of a single economic space,” he stressed.

Mr. Khotsenko, in turn, said that the local legislation of the republic is almost identical to the Russian one. “The Federal Tax Service of Russia helps us, including with the provision of information systems that are located in the Russian Federation and are considered one of the best in taxpayer accounting and their personal accounts. They have been used in Russia for a long time, and in the near future these services will be available to us too,” said Mr. Khotsenko.

In the LNR, the situation is similar. “We must be fully prepared for investors and businesses to meet with us a complete understanding of the rules of work, a willingness to work according to them in an integrated tax system and not experience any problems with registration and tax accounting in their field of activity,” the head of the government of the LPR emphasized Sergei Kozlov.

Previously reportedthat they plan to submit a bill to the State Duma that will reset VAT for Russian companies and organizations providing humanitarian assistance to the DPR and LPR.

Julia Abugalieva