The government approved amendments to the norms for the distribution of individual revenues in the budget

The government approved amendments to the Budget Code. Among other things, they fix the norms for the distribution of individual revenues between budgets, including the tax on excess profits of previous years that has not yet been introduced. The document also establishes new sources of road funds formation.

What amendments approved:

• Norms of distribution between budgets of separate incomes are fixed. This will affect the new excess profit tax, which is planned to be introduced by amendments to the Tax Code, as well as environmental payments for the operation of a separate production facility.
• The budgets of the regions receive income from administrative fines for violating the rules for the movement of heavy, large-sized vehicles, as well as fines for violating the high alert regime. This will affect the roads of regional, intermunicipal and municipal roads.
• New sources of formation of road funds are fixed. For the federal fund, they will be income from the use of state property under the terms of concession agreements, for regional and municipal funds – payment in compensation for damage to roads from heavy vehicles and fines for violating the rules for the movement of such vehicles.
• The Budget Code will include a provision on the free provision of services to the federal treasury by a clearing organization, a central depository, a central counterparty and an exchange.
• There will be a requirement to place in the GIS “Electronic budget” information on financial and non-financial assets and liabilities of the Russian Federation, as well as federal budgetary and autonomous institutions.
• All subsidies to legal entities will be combined into one group of types of expenses in the budget classification. The Ministry of Finance assumes that this will shorten the timing of bringing subsidies and remove the need to make changes to the consolidated budget schedule.

The Russian authorities have been discussing the introduction of a tax on excess profits for past years in recent months. They expect to receive about 300 billion rubles from this. The difference in profits of companies in 2021-2022 compared to 2018-2019 will fall under the additional tax. The law is expected to take effect in 2024, but companies will be able to pay it at a discount in 2023.

Read more about the new tax – in the material “Kommersant” “Capital was left with no choice”.

Leonid Uvarchev