The Government of Russia in the draft law on changes in business taxes will refuse the item linking the amount of income tax and dividends of companies. This follows from the instructions determined by the meeting of the Prime Minister Mikhail Mishoustin with members of the Bureau of the Board of the Russian Union of Industrialists and Entrepreneurs (RSPP). Solutions are published on the Cabinet website.
“agree with the proposal of the meeting participants to exclude the provisions of the draft law, providing for an increase in the income tax rate in the event of a profit on the payment of dividends,” the document says.
In addition, as follows from the assignments, the government intends to support the business community agreed by the Ministry of Finance and representatives of the business community for mining (NPPI). We are talking about “apatite-nephelin, apatite, phosphorite, potash, apatite-magnetite, apatite-stuffy and low-popular apatite ores, multicomponent complex ores of the Krasnoyarsk region containing copper and (or) nickel, and (or) Metals of the Platinum Group”, and Also coking coal. The government will also support the proposal on the level of the adjustable component of the NPPE rate on the iron ore of 4.8 percent and the excise rate on liquid steel in the amount of 2.7 percent.
On September 23, after negotiations, the authorities and representatives of the metallurgical industry came to a compromise about the increase in taxes. The head of the RSPP Alexander Shokhin said that the issue with dividends decided to remove the agenda to the minimum until 2023. During the meeting, the head of the Ministry of Finance Anton Siluanov stated that the government could not arrange the conclusion of dividends abroad. The agency considered the right to associate income tax with the amount of dividends. Increase tax wanted for those companies that for five years paid more dividends paid more than invested in the last five years.