Russia has prepared a new tax for foreign companies that want to leave the country, in addition to the 50% discount already in place for obtaining sales permits, Bloomberg reports.
Several sources familiar with the plans drawn up by Moscow’s finance ministry say Russia will impose a 10 percent tax on “excess profits” made in 2021-2022 by foreign companies that want to leave the country.
The tax will apply to businesses with a profit of more than a billion rubles, according to Bloomberg sources, and no company that wants to sell its business in Russia will be exempted from it, as the country’s budget needs money in the context of a record. deficit of the state budget after the collapse of revenues from the export of energy carriers.
Journalists of one of Russia’s main financial newspapers, Vedomosti, also wrote about this plan, noting that the legislative project on the application of the tax has already been developed by the Ministry of Finance of Russia.
According to the currently available information, the tax will come into force only from next year, but foreign companies will have the opportunity to pay it already this year at a rate of only 5%, if they pay it in advance and leave Russia. .
50% discount if you want to sell your business in Russia
Foreign companies leaving the country led by Vladimir Putin must obtain permission from a special finance ministry commission to allow the sale of the business. Now in line are such companies as Volkswagen, UniCredit and Raiffeisen Bank.
The Ministry of Finance of the Russian Federation demands to sell assets to Russian business entities with a 50% discount, as well as to accept payments in installments for several years – otherwise – a voluntary contribution of another 10%.
The start of the war in Ukraine last year led to a real outflow of foreign companies from Russia, some decided to leave the country in protest against military aggression, others due to significant obstacles created by Western sanctions for activity in Russia.
More than 300 international companies pulled out or announced they would pull out of Russia by the end of last year alone, while others made the decision more recently as the scale of the sanctions’ impact on the Russian economy became apparent.
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Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.