Overview of tax events for December 2023

Regulatory Developments

The Russian President has signed:

• a law to ratify the DTT between Russia and Oman;

• a law to suspend certain provisions of DTTs with hostile states;

• a law that introduces a new type of investment tax deduction - 25% of expenses on projects devoted to technological sovereignty and the structural adaptation of the economy;

• a law that provides for the integration of the digital rouble in the tax regulation and control system;

• a law with large scale amendments to the Russian Tax Code, including the increase of excise duties on alcohol and tobacco (No. 539-FZ).

The President has also signed a list of instructions for the Russian Government, including - consideration of the possibility to introduce a graduated rate for profit tax depending on the investment activity of business.

It is proposed to unite all non-tax payments from business into a common register.

Practice

In 2023, businesses were three times more likely to resort to tax instalment payments. This allowed the number of bankruptcies to be reduced by 30% in nine months.

The Russian Supreme Court has approved the Overview of commercial courts applying provisions of legislation on taxes and levies associated with assessing whether a tax benefit is justified.